2024 Sustainability Report

Smart, healthy,
sustainable
tomorrows
 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

3 Letter from George Oliver 16 Our approach – 28 Our approach - 36 Our approach - social 64 Climate policy and 88 Governance 109 2024 Sustainability
and Katie McGinty sustainable products scope 1 and 2 greenhouse impact and employee engagement leadership Report Data
and solutions gas emission experience 93 Ethics and integrity
7 2023 Sustainability 70 Nature 110 About our reporting
Performance 19 Develop low-carbon and 31 Facility decarbonization 39 Diversity, equity 96 Our employees –
energy-efficient products and inclusion 77 Waste and circular talent management 112 Environmental data
8 We are honored 33 Refrigerant loss reduction economy
21 Help customers 51 Community investment 103 Human rights 115 Social data
10 Materiality decarbonize 33 Fleet emission reduction and engagement 80 Water
105 Product safety 118 Governance data
11 Environmental, social 23 Reduce embodied carbon 34 Transition to renewable 57 Zero Harm – 85 Supplier sustainability
and governance electricity employee health, and supplier diversity GRI Content Index
material topics 26 Supplier environmental safety and well-being
impact TCFD Index
12 Management of
our material topics SASB Index

13 Sustainability governance

Thank you
The photographs used in this report were part of a photography competition held by the Global Sustainability Network
in 2023 as part of Earth Month. The photographers have given their permission for us to use these images.
Any other use of these photographs is prohibited unless agreed with the photographer.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Letter from George Oliver, Chairman and CEO, and

Katie McGinty, Vice President and Chief Sustainability
and External Relations Officer

At Johnson Controls, we pride ourselves

on building smarter, healthier and more
sustainable tomorrows.
This unwavering focus on sustainability is at the very heart
of our purpose as a company and informs every aspect of
our work, from our strategy and our customer service to
our corporate citizenship. We approach our own ambitious
decarbonization goals as an opportunity to lead by
example, while our nearly 140-year heritage of building
technologies and services provides new solutions for
customers around the world to accelerate their own
net zero journeys.

Our work has never been more important.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Buildings are imperative to solving the climate crisis Adding or upgrading building automation and digital technologies These solutions are making a difference in buildings like the
Buildings are responsible for nearly 40 percent of global carbon to optimize energy use are among the most impactful Children’s of Alabama medical center, where OpenBlue and heat
emissions. However, the good news is that, with the trifecta of sustainability investment areas. A vast majority of leaders pump technologies have delivered $450,000 in annual savings
efficiency, electrification and digitalization of buildings, we can seek partners who can provide a digital platform across sites and reduced the use of natural gas by 69 percent. In Norway,
slash carbon and operating costs at the same time. that is easy to use and is integrated into all building systems. OpenBlue is helping create the largest net energy-positive
Smarter, more sustainable buildings give them the ability to building in the northern hemisphere, while in Dubai Silicon Oasis,
For that reason, the built environment represents one of the bring together data from building systems, with measures to our chillers and AI-driven solutions are significantly reducing
fastest paths, if not the fastest path, to meeting global climate protect that data, a centralized mission for the data being carbon footprint by some 30 percent and guaranteeing energy
targets and ensuring a viable future. At the same time, global collected and actionable intelligence provided by emerging savings of approximately 4.2 million kWh per year.
climate targets set by the international community—to reduce machine learning and AI capabilities.
carbon emissions by 45 percent by 2030, while limiting global With teams, colleagues and partners across the world, we’re
warming to 1.5°C and achieving net zero by 2050—are achievable, We are the partner our customers need to solve their challenges. uniquely positioned to drive these kinds of outcomes in new and
but time is of the essence. existing buildings, wherever they may be.
We also understand that every dollar needs to create greater
We have only six years left to meet global targets. The time to value for our customers. Through technology and innovation, Putting the future within everyone’s reach
act is now. We have the technologies, financing and experts to we’re enabling them to embrace decarbonization in a smart way, We recognize that the will to decarbonize also requires a way.
transform buildings from one of the greatest climate challenges and it shows. In fact, 70 percent of CEOs affirm that they are
into one of the biggest climate wins. sticking with climate action because it’s proving its financial This is one of the reasons we have created new paths for
value to their companies. customers to overcome the financing gap, creating multiple
Creating a world of net zero buildings mechanisms to put funding for sustainability projects within
Recently, we commissioned Forrester Consulting to evaluate the We are the sustainability leader in buildings reach. So, we can make a difference now, when changes matter
state of smart buildings globally. In this landmark study of nearly Throughout this report, we highlight key innovations and the most.
3,500 respondents across 18 industries and 25 countries, we found initiatives that demonstrate acceleration in delivering energy
that, among decisionmakers on sustainability initiatives, two thirds efficiency and decarbonization in buildings. When we electrify operations and optimize energy efficiency
feel they are fully on track to meet their carbon reduction goals. through our digital platform and technologies such as AI, digital
One third, however, need to accelerate their efforts. This includes our expertise in the solutions that form the smart twin and more, we can put data to work. This is our recipe for
building trifecta of energy-efficient equipment, clean success, helping buildings slash carbon footprints, while saving
An overwhelming majority also reported that smart buildings electrification and digitalization. By upgrading equipment to on electric bills. Through this, we’re enabling customers to
are important in helping their organizations lock in carbon make it energy efficient, replacing the use of gas and oil in accelerate action on climate, while also lifting economies and
reduction gains. That said, siloed systems, lack of partners, buildings with electrification and aggregating data, an entirely driving growth.
disjointed internal teams and lack of visibility to key data new class of buildings is within reach. It’s a decarbonized built
prevent most from accurately and efficiently measuring environment that amplifies energy, emissions and cost savings,
progress against their own sustainability goals. Companies and even enables buildings to produce more energy than they
that have overcome these challenges, on the other hand, use, thereby transforming buildings from cost centers and carbon
view smart building initiatives holistically. problems to cash centers and carbon solutions.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Sustainability is no longer a trade-off, as buildings move Now, we’re unleashing the next generation of digitally-enabled As we continue to shape and inform many of the most important
from balance-sheet liabilities to strategic assets. Simply put, operating equipment that can deliver up to 50 percent additional global conversations, we affect positive change and promote
sustainability is good for business and the environment. carbon savings for our customers, on top of the the ongoing and necessary partnership between private and
run-rate efficiency of the hardware itself. public entities. It is only through a coordinated and deliberate
Our own sustainability journey partnership that we’ll solve the world’s sustainability
We have very purposefully created a company that’s uniquely A global voice for good challenges.
qualified to meet the needs of customers at every level, creating In our industry and beyond, we want our voice to amplify the
the products, installing and servicing them, investing in advanced clarion call for companies, leaders and concerned citizens to join Many global challenges compete for attention on the world
technologies like AI, and creating the financing structure to the fight against climate change and make a difference every stage, which can often pull focus away from the pressing issue
support end-to-end net zero journeys - wherever they are, way we can. of climate change. As a team of more than 100,000, our focus
whatever the need. and resolve remain unchanged. We’re committed to creating
Our leadership in major organizations such as the Business a horizon of healthier, safer, more sustainable buildings and a
It’s one of the reasons our products and solutions serve more Roundtable and Sustainable Markets Initiative, along with brighter future for all.
than four million customers and are in 90 percent of the world’s engagement at major events where our speakers are in high
most iconic buildings. It’s also an important factor in ensuring demand like COP28, the World Economic Forum’s annual meeting We thank you for taking the time to read our annual sustainability
we live up to our ambitious carbon targets and vision for digital in Davos and New York and London Climate Weeks, demonstrates report. We’re proud of the progress made this year and we look
transformation. our commitment to thought and action leadership. forward to the many successes ahead as we pursue our purpose
and continue to make the global transition toward more
We’re proud of the steps we’ve taken as a company to prioritize As such, we’re proud to have been a public voice urging the sustainable buildings a reality.
ESG and lead from the front. Since 2017, we have achieved a 43.8 ratification of the Kigali Amendment by the US Senate and to have
percent absolute reduction in scope 1 and 2 emissions, positioning shown the way in delivering products that put not only low, but George Oliver
us well on our way to achieving our 2030 goal of cutting carbon ultra-low GWP refrigerants to work. We were also a public voice Chairman and CEO
by 55 percent, a target aligned with maintaining a 1.5°C world. in favor of the Inflation Reduction Act, as well as similar strong
In addition to this, we’re also proud to have surpassed our 2030 initiatives in Europe, and we’re working to ensure that the Katie McGinty
commitment to cut our scope 3 emissions by 16 percent. As a important incentives in these laws and directives continue to Vice President and Chief Sustainability
result of this progress, we’re currently ahead of schedule to reach provide businesses and individual consumers with the market and External Relations Officer
our net zero goal by 2040, 10 years ahead of the 2050 signal they need to replace old equipment with clean,
goal set by the Paris Agreement. low-carbon technology.

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Overview Global sustainability How we work Data
and solutions emissions employee experience

2023 Sustainability Performance

Targets Results to Date Progress

2030 target
Sustainable • 16% reduction in Scope 3 emissions • 27.1% reduction, exceeding our 2030 science-based target
Products and from use of sold products in 2030
Solutions
2017 baseline year

2025 target
GHG Emissions, • 25% reduction of GHG intensity • 52.5% reduction, an ambitious target we have now
Scope 1 & 2 in 2025 more than doubled
2025 target
2017 baseline year • 25% reduction of energy intensity • 22.5% reduction, achieving more than 90% of our
in 2025 target two years early
2030 target
• 55% reduction of absolute scope • 43.8% reduction, putting us ahead of schedule in
1 & 2 emissions in 2030 achieving our 2030 science-based target

2025 target
Social Impact • 25% reduction in recordable safety • 34.6% reduction. We have already exceeded this 2025 target and
and Employee incidents in 2025 from our 2017 baseline continue to strive toward our global vision of Zero Harm
2023 target
Experience • FY23 goal: $495 million • $597 million was spent with certified diverse
Increase diverse supplier spend with business enterprises, exceeding our target
certified diverse business enterprises
at a rate exceeding revenue growth
2025 target
2 million employee volunteer hours • 1.92 million accumulated hours. Our employees logged 61,521
in 2025 volunteer hours in 2023, the most volunteer hours recorded
in one year since 2017

80% of volunteer hours aligned to the • 82% of hours are aligned, with the majority of time driving the
UN Sustainable Development Goals goals of Sustainable Cities and Communities and Quality Education

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and solutions emissions employee experience

We are honored A LIST

One of fewer than 400
companies to receive this
distinction amongst more
One of just 11 companies
worldwide to receive this
2023 than 21,000 who disclosed honor 17 times
Sustainability is at the heart of our business CLIMATE to CDP

and fundamental to everything we do.

We’re proud to be recognized as one of the World’s Awarded to companies with
Most Ethical Companies, to be named to CDP’s Climate an ESG performance above
the sector-specific Prime
Recognized as a leader
in managing environmental,
Change A List for transparency and performance on threshold, which means social and governance risks
that they fulfil ambitious, and opportunities
climate change, and to be recognized by the following absolute targets
organizations for our commitment, our results and
our transparency.

Recognized for employee

satisfaction, economic
Designated as an industry
resilience and our progress
leader in ESG management
SUSTAINALYTICS by Sustainalytics TIME’s towards ambitious
ESG Industry Top Rated World’s Best Companies sustainability goals
2024 List 2023 List

Listed at #31, up from #40

One of the first 45 companies last year, recognizing the
globally to receive the Terra top 200 companies leading
Carta Seal for creating the transition to a sustainable
“genuinely sustainable The CLEAN global economy, by
markets”
200® LIST Corporate Knights

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We are honored

Top 4 percent of more than

100,000 companies assessed Included for our corporate Included as one of the
across environment, labor and ethical standards and leading companies in Europe Ranked #144 out of
human rights, ethics and supply performance in environmental
Financial Times in showing a reduction in FORBES 480 companies listed
chain sustainability and social responsibility energy intensity American’s Best Employers
European Climate Leaders
2023 List for Diversity
2023

Recognized for our diverse Recognized for working

Johnson Controls wins
workplace and commitment environment, salary, employee
Named for our innovative 2023 Microsoft Global
to recruiting and advancing diversity and whether female
Independent Software
FORTUNE’S
and transformative heat
pump technology
MICROSOFT Vendor Partner of the Year
NEWSWEEK’S individuals of various ages, FORBES employees would recommend
Global Independent Software America’s Greatest races, genders, sexual America’s Best Employers the company to a friend or
Change the World
Vendor Partner of the Year Workplaces for Diversity orientations and abilities for Women family member
2023 List
2023 2024 2023

Top 100 Companies driving by Corporate Knights - Global Recognized as one of the
the energy transitition and 100 companies represent the Recognized in the top 15 leading global companies
leading in transparency top one percent in the world. percent of the industry for
Sustainability in climate action and This is the 9th time Johnson our sustainability performance
in terms of environmental,

Magazine’s sustainability reporting Controls has been given STOXX social and governance criteria

Top 100 Companies this honor Global ESG Leaders

2023 List

Named one of China’s top

employers by the Corporate Awarded due to overall
Research Foundation (CFR) dedication to social Named a leader in Energy
Institute for the 14th responsibility, corporate Management Software
Corporate by Human Rights Campaign consecutive year for
NEWSWEEK’S
sustainability and the by Verdantix in its 2023
maintenance of high
Equality Index creating exceptional
employee conditions
Excellence 1000 Index ethical standards
Green Quadrant
2023 - 2024 2024

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Materiality
Using environmental, social
and governance materiality
assessment to inform
our strategy.

Disclaimer:
The term “material” used in this report refers to the
“material topic” definition of the Global Reporting
Initiative. It is used to refer to relevant topics, which
potentially merit inclusion and can reasonably be
considered important for reflecting the organization’s
economic, environmental and social impacts or
influencing the decisions of stakeholders. This concept
of materiality does not correspond with, and should
not be confused with, concepts of materiality utilized
for securities, financial or regulatory purposes.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Materiality 2023 Materiality Assessment

3-1 | 3-2 | 3-3 ESG material topics

In January 2023, we conducted a

materiality assessment to understand HIGHEST PRIORITY HIGH PRIORITY PRIORITY
the most impactful environmental, social
and governance (ESG) topics for our
business and to ensure we’re building 1. Sustainable products • Air quality and • Board oversight
robust strategies to manage our strategic and solutions air emissions of sustainability
impacts, risks and opportunities. • Net zero buildings • Climate policy and • Circular economy
• Energy-efficient products and services engagement leadership
The materiality assessment followed a process where we:
• Product GHG emissions
• Climate risk and resilience
Identified a list of 25 topics related to leadership • Digital transformation
1 • Decarbonization as a Service
• Cybersecurity
and governance, human and social capital, • Community investment
environment, and business model and innovation • Supplier environmental impact
• Ethics and compliance
Surveyed over 100 internal Johnson Controls 2. Greenhouse gas emissions • Management of ESG
2 (Scope 1 and 2) • Employee recruitment, laws and regulations
leaders and 50 external stakeholders, including
customers, suppliers, partners, NGOs and engagement and
trade associations 3. Social impact and development • Waste management
employee experience

3 Evaluated topics on quantitative ratings and • Human rights • Water management
• Diversity, equity and inclusion
qualitative assessments based on the context
• Employee health, safety
of our business activities and relationships • Increased use of • Supplier diversity
and well-being
across the value chain renewable energy in
our operations
4
Identified and grouped the most impactful
areas under three material topics representing
the fundamental themes and concepts to • Embodied carbon
provide strategic clarity

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Management of our material topics The results of the ESG materiality assessment identified nine highest
2-12 | 2-13 | 2-14 | 2-24
priority topics, which we then aligned under three material topics:
sustainable products and solutions, greenhouse gas emissions,
and social impact and employee experience.

Our targets are the result of the 2023 Sustainability governance

Materiality Assessment. We’re currently
embarking on a Double Materiality Executive Committee
Assessment to understand the financial The authority for day-to-day oversight and
materiality and the environmental and social management of economic, environmental and
impact of ESG topics to Johnson Controls. social topics is delegated to the Executive
Board of Directors The highest priority ESG material topics Committee, which is chaired by our Chairman
Governance & Sustainability are managed under our Enterprise ESG and Chief Executive Officer George Oliver
Committee
Governance Program, which includes four and comprises the senior executives
levels of oversight (see Governance): responsible for all our major corporate
functions. The Executive Committee also
Board of Directors and board committees includes our Chief Sustainability and

CLIMATE
Executive GOVERNANCE
The Board of Directors oversees the External Relations Officer.
implementation of our mission, vision and
Committee values across our company. It reviews our ESG Leadership Committee
environmental, social and governance (ESG) The ESG Leadership Committee (ESG LC)
material topics, strategy, commitments and is chaired by our Vice President of Global
performance, including sustainability, Sustainability and Regulatory Affairs and
PRODUCT
ESG Leadership SUSTAINABLE employee health and safety, and human reports to the Chief Sustainability and
capital management. The Governance and
STEWARDSHIP Committee SUPPLY CHAIN
Sustainability Committee of our Board of
External Relations Officer. Its members
consist of senior leaders across our
Directors has been delegated primary businesses, functions and regions. The ESG
oversight over the sustainability and health LC organizes sustainability and corporate
and safety matters impacting our company responsibility topics, along with their
and is briefed each quarter on our progress. associated targets, metrics and strategies,
SOCIAL IMPACT The Compensation and Talent Development into one of six enterprise ESG committees:
DIVERSITY,
EQUITY & INCLUSION Committee has been delegated primary climate, product stewardship, sustainable
oversight over human capital matters and value chain, diversity, equity and inclusion,
employee experience. (DE&I) social impact and governance.

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and solutions emissions employee experience

Enterprise ESG committees

Our enterprise ESG committees are formed as cross-functional

teams responsible for the execution of annual targets and for CLIMATE
establishing long-term strategies to meet our ESG commitments.

Our ESG Leadership Committee oversees these ESG committees and guides our three
material topics, which align to the following workstreams:
CE

N
NA
ER
Sustainable products and solutions:

GOV
Product stewardship and sustainable supply chain

GHG emissions: Environmental,

Climate
Social &
Governance
Social impact and employee experience:
DE&I and social impact

IO N
SUS LY C
SUP

IN Y,
US
& SIT
CL
TA
P
Our governance workstream ensures internal alignment and consistency

TY ER
IN H
BL

UI DIV
A
with the development and execution of our ESG strategy and reporting, AI E
N
including alignment with our Executive Committee and Board of Directors, E

Q
as well as our ESG disclosures.

In this report, we focus on our management of our highest priority material topics as identified SOCIAL IMPACT
in our ESG materiality assessment, as well as additional topics important to Johnson Controls.
All issues are treated in conformity with GRI Standards and SASB Standards.

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Carbon transition plan

Reduce scope 1 and 2 emissions
Johnson Controls continues to take significant climate
action and has committed to achieving net zero scope 2030 Results
1 and 2 carbon emissions by 2040, ten years ahead of Target to date
the goal set out in the Paris Climate Agreement.

By 2030, we aim to cut our scope 1 and 2 emissions by

55 percent and we’re currently ahead of schedule, having
already achieved a reduction of more than 43 percent
from our 2017 baseline.

We also aim to reduce our scope 3 emissions by 16 percent, Reduce scope 3 emissions
a goal we have already exceeded, having reduced emissions
by 27 percent from our 2017 baseline. 2030 Results
Target to date
These ambitious 2030 emissions reduction targets have been
approved by the Science-Based Targets initiative (SBTi).

Central to the development of our net zero strategy and deployment schedule is our
carbon transition plan, which looks at the current state of our carbon landscape and
the specific actions and improvement measures needed to drive towards net zero.
Our data-based approach is essential to the cross-functional engagement, clear
and time-bound objectives, and focus on execution that we’re implementing
across the enterprise.

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Sustainable
products and
solutions
Delivering sustainable products
and solutions is core to our
business and our growth as a
global leader in smart, healthy,
sustainable buildings.

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 Sustainable products Greenhouse gas Social impact and
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and solutions emissions employee experience

Material topic 1:
Sustainable products and solutions Our scope 3 carbon reduction strategy is driven by four key strategies:

1. Develop low-carbon and energy-efficient products

Our approach
2-2 | 2-6 | 203-1 | 203-2 2. Drive OpenBlue digital solutions to accelerate customer success in decarbonization

Priority topics: 3. Reduce embodied carbon of our products to enable customers to build net zero carbon facilities
Net Zero Buildings, energy-efficient products and services, product GHG emissions,
digital transformation, as-a-service offerings for decarbonization and supplier 4. Weigh sustainability equal to other key metrics in supplier performance evaluations and require
environmental impact. suppliers representing 80 percent of our procurement spend to undergo third-party independent
sustainability performance assessment by 2028
Delivering sustainable products and solutions is core to our business and our growth
as a global leader in smart, healthy, sustainable buildings. As we work to help our
customers manage their carbon transition and enable deep decarbonization of Metrics:
their facility footprints, we employ a four-part strategy to achieve our
science-based target approved by Science Based Target initiative: 1. Invest at least 75 percent of new product research and development (R&D) annually
in climate-related innovation to develop sustainable products and services

2. Deliver avoided emissions through OpenBlue digital solutions

Target:

16% reduction in scope 3 We demonstrate our commitment to sustainable products

emissions from use of sold products in 2030 from our 2017 baseline and solutions by:

• Saving customers carbon emissions and costs

• Delivering revenue from sustainable products and solutions

• Driving demand for low-carbon steel by meeting at least 70 percent of our

North American steel needs with low-carbon options

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2023 progress

90%
Metric: Invest at least 75 percent of new product R&D annually in
climate-related innovation to develop sustainable products and services
TARGET
Progress: In fiscal year 2023, roughly 90 percent of new product R&D was invested R&D invested
Reduce our scope 3 emissions from in climate-related innovation to develop sustainable products and services. in sustainable
We include sustainability key performance indicators in product design products and
the use of sold products by 16 percent during the stage gate review of our innovation process. services
by 2030 against our 2017 baseline.
Metric: Deliver avoided emissions through OpenBlue digital solutions

16% Scope 3 reduction goal Progress: Sustainable revenue in 2022 was 57 percent of total company revenues,
up from 54 percent in the previous year. Revenue from sustainable
57%
sustainable
products and services continues to increase as a percentage of our total revenue
2030 target revenue. We follow the Corporate Knights Sustainable Economy Taxonomy
standard for defining sustainable products and calculating sustainable
revenue, with modifications used where necessary to align with specific
Johnson Controls solution definitions. Corporate Knights reviews our

27% Scope 3 reduced to date sustainable revenue metrics and has listed Johnson Controls as number
31 on Corporate Knights Clean 200, up from number 40 last year.

The sustainable revenue definition includes:

PROGRESS
• Products that enable beneficial electrification of heating
• Products that exceed minimum energy efficiency regulations
We have reduced scope 3 emissions from for cooling or heating
• Products that use low-GWP refrigerants The CLEAN
the use of sold products by 27 percent • Products that enable greater energy efficiency in buildings, including
200® LIST
compared to fiscal year 2017. energy recovery, building control and automation systems, and other
connected products
• Digital solutions, such as OpenBlue, our complete ecosystem of
The use of sold products represents more connected technologies, expertise and services
• Products that are manufactured with recycled or reground materials
than 95 percent of our scope 3 emissions. • Revenue from the installation, maintenance and service attributable
to the products listed above

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Develop low-carbon and energy efficient products Case study:

The TIGER at Princeton University
Addressing climate change necessitates that we manage our entire carbon footprint in alignment
with a 1.5°C reduction trajectory. With the vast majority of our scope 3 emissions coming from
the use of sold products, it’s critical that we deliver low-carbon solutions to our customers. Princeton University is taking substantial action,
At Johnson Controls, we’re leading the carbon transition with sustainable products and services now, to achieve their goal of a Net Zero Campus
across three strategic pillars: energy efficiency, low-GWP refrigerants and electrification.
by 2046.

1 Energy efficiency To this end, Johnson Controls is working powered only by electricity, which
with Princeton University on their unique greatly reduces the university’s reliance
TIGER (Thermally Integrated Geo-Exchange on fossil fuels. Ultimately, the university
Why: Building heating, cooling and ventilation operation is responsible for over 50 percent
Resource) Energy Plant in Princeton, New is planning on buying 100% carbon-free
of energy consumption in residential and commercial buildings, thus representing
Jersey. It is a truly innovative and sustainable electricity, which will reduce Princeton’s
a significant share of the nearly 40 percent of global GHG emissions attributable to
project resulting in truly decarbonized carbon emission to near zero.
the built environment. Improving the energy efficiency of these products will reduce
cooling and heating for the 180 buildings
energy-related emissions and our customers’ operational expenses, while also
on campus. This conversion to the new geoexchange/
creating a smoother transition to a distributed, zero-carbon energy system.
heat pump/hot water system will be phased
The multimillion-dollar project uses our in over many years. Ultimately, there will be
What: Johnson Controls has a market-leading portfolio of energy-efficient HVAC products,
high-capacity, high-temperature YORK CYK 2100 geoexchange bores that are each
many of which exceed regulatory and market requirements by 30 percent or
Compound Centrifugal Electric Heat Pumps 850-foot deep. A new underground low-
more. Despite this, we continue to improve the energy efficiency of our products,
to draw low-temperature heat from either temperature (145°F) hot water district
through incremental improvements to existing models, new product launches that
a geoexchange field or the chilled water system is being installed to connect the
result in significant changes in efficiency, assisting our customers in making optimal
system and it pumps this heat into the new heat pump plants to the campus buildings.
product selections for their applications, and shifting our share of products sold
145°F campus district hot water system. Each of these buildings will be modified
to higher efficiency models.
Thus, the heat pumps can cool the chilled to use hot water for their heating system
water and heat the hot water at the same instead of steam.
Example: YORK® YVAM and CYK chillers
time. Or when using the geoexchange
Specifically optimized for data center operations, the YVAM air-cooled chiller
system, heat can be pulled from the chilled It’s anticipated that the university will
eliminates water consumption and is 49 percent more efficient than conventional
water system in the summer - and stored almost eliminate the use of natural
air-cooled chillers. The CYK heat pump chiller, on the other hand, can achieve a
seasonally until the winter - when it can be gas, reduce campus domestic water
coefficient of performance (COP) as high as 8.0, meaning that it produces eight
used as a low-temperature heat source consumption by 20%, and reduce
times the working energy it consumes, while providing simultaneous heating and
for the heat pumps. This system is carbon emissions to near zero with
cooling, with hot water temperatures up to 170°F. At these temperatures, our heat
dramatically more efficient than Princeton’s the use of carbon-free electricity.
pumps can take on hard-to-abate end uses, such as space heating in complex
old steam system. The heat pumps are
commercial buildings and industrial process heating.

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2 Low-GWP refrigerants 3 Efficient, beneficial electrification of heating

Why: Conventional refrigerants used in today’s HVAC products are hydrofluorocarbons Why: Most of the world’s heating needs today are met with direct fossil fuel combustion.
(HFCs), fluids that do not harm the ozone layer, but can have high Global To decarbonize our buildings and maintain a reliable grid, we need to efficiently
Warming Potential (GWP). Phasing out these HFC emissions globally could electrify these fuel combustion systems with heat pumps. Heat pumps use one
reduce the global temperature rise by 0.5°C by 2050. third of the energy of conventional heating systems and run on electricity, thus
leveraging the clean energy transition. Moreover, heat pumps capture and use
What: Johnson Controls has helped lead the global phase-out of HFC use in accordance thermal energy to deliver many multiples of working energy for every unit of
with the Kigali Amendment to the Montreal Protocol. We’re currently transitioning energy consumed to drive them.
our HVAC portfolio to low-GWP refrigerants and already provide options that can
reduce GWP by more than 78 percent. However, we’re still investing heavily in What: We offer one of the world’s most comprehensive ranges of heat pumps, covering
solutions that will drive those reductions even further, while maintaining product residential, commercial and industrial applications. We’re expanding our
safety and performance. portfolio to provide higher temperature heating, at colder outdoor conditions,
across wider application types. We’re also planning for decreasing demand for
Example: Refrigerant R-1234ze furnaces as customers transition to more efficient heating sources. Of the
In 2023, we launched new chillers with the ultra-low (<10) GWP refrigerant furnaces we do sell, more will be used to supplement heat pumps instead of
R-1234ze for the North American market, complementing our existing applied being used as a primary heating source.
and industrial refrigeration products that utilize the refrigerants R-1233zd,
R-290 (propane), R-717 (CO2), R-718 (water) and R-744 (ammonia). We’re proud to be recognized by the US Department of Energy (DOE) as a leader
in inventing new heat pump capabilities. This recognition has led to us receiving a
major award from the department under the Defense Production Act that will
enable us to increase heat pump production by some 200 percent.

Example: YORK YZV residential ducted electric heat pump

The YZV heat pump exceeds US Department of Energy standards for heat pumps
and ENERGY STAR cold-climate heat pump performance requirements at -15°C (5°F)
ambient conditions, creating a reliable alternative to conventional fossil fuel
combustion heating in even the coldest climates.

YORK YVAM YORK YZV

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Help customers decarbonize

Enhance our digital solutions to help our customers further decarbonize operations OpenBlue Net Zero Advisor and Enterprise Manager

Continuous improvements in our product performance Johnson Controls offers a digital portfolio including OpenBlue Our OpenBlue suite of applications includes Enterprise Manager,
will help us make significant strides in reducing our carbon Enterprise Manager, OpenBlue Services, and Central Utility which produces real-time performance dashboards to drive energy and
emissions and we can drive even greater efficiencies by Plant Optimization that enhances HVAC equipment and greenhouse gas emission improvements. This can also be integrated
digitizing the operation of those products. Doing so will building subsystems to minimize energy use, while with Net Zero Advisor, which supports customers’ increasing need
ensure they run as efficiently as possible all the time, on maintaining building performance. We are working hard for data and transparency when reporting to internal and external
the cleanest energy available, while enabling a modern to create a future where every commercial product we sell stakeholders. Seamlessly integrating with leading technology partners
and interconnected energy system. is connected to a digital optimization system. As we build and existing building technologies, it digitally transforms buildings so
towards that future, we continue to use customer data to that their hardware is monitored, connected and protected.
optimize our digital solutions and to better understand the
impact they have on product operational carbon emissions.

Energy Efficiency
& Sustainability
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improving your bottom line
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FMS:Workplace
Space, Wellbeing Principle:
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Drive space efficiency, optimal Security, Safety
through our products and services. With the launch of our
occupant experience and health
& Compliance
OpenBlue Enterprise Manager, we have the ability to accelerate
Workplace Advisor - IAQ Holistically protect people
and property avoided emissions by leveraging energy performance data
Workplace Advisor - Space
and artificial intelligence to optimize building operations and
Critical Environments Advisor subsequent carbon emissions. In 2023, OpenBlue Enterprise
FMS:Workplace FMS:Employee Manager and OpenBlue Central Utility Plant helped our
FMS:Visitor FMS:Insights customers avoid an estimated 70,000 metric tons CO2e,
more than four times the avoided emissions of 2020.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Spotlight: NRG Park

$8.4 billion customer savings
NRG Park is expected to generate an Since January 2000, performance-contracting
estimated $54 million in energy savings, projects have directly delivered nearly 39 million
while significantly reducing GHG emissions. metric tons in avoided CO2e and are set to save
Encompassing 350 acres in Harris County, Texas, NRG Park hosts over 500 events and more more than $8.4 billion for our customers through
than 5.5 million people annually at its sports, entertainment and event venues, namely NRG energy and operational savings over project terms.
Center, NRG Stadium and NRG Arena.

Now, Johnson Controls, Harris County Sports & Convention Corporation (HCSCC), NRG Park
and Harris County, Texas, are embarking on a historic sustainability and energy efficiency
project. This 20-year energy savings performance contract is expected to generate more than
$54 million in savings that will fund the entire cost of the complex-wide upgrades, while also
providing surplus savings that will be reinvested back into the Harris County community.

The project spans much of the complex, including upgrades to HVAC equipment, building
Net Zero Buildings as a Service
automation systems (BAS), water conservation, life-safety systems and lighting, as well as In 2021, Johnson Controls launched Net Zero Buildings as a Service, which gives customers real
high-efficiency chiller upgrades and the integration of Johnson Controls OpenBlue Central flexibility with real results. It includes everything from upfront capital, design and construction
Utility Plant. As such, results will be measured and verified by Johnson Controls through an decisions to supporting customers’ decarbonization goals and reporting. Tailored to the needs
ongoing service agreement. and goals of customers, this can also include an energy savings program, on-site solar, battery
and renewable energy supply, and expert advisory through to digital solutions.
In addition to creating an optimized environment for NRG Park attendees, this project is also
expected to reduce carbon dioxide emissions by more than 33 percent at NRG Park. This is With our as-a-service offerings, neither lack of capital nor lack of expertise should stop
highly significant for Harris County, which aims to reduce the county’s carbon emissions by organizations from launching ambitious decarbonization programs. In fact, with guaranteed
40 percent by 2030 in line with its Climate Action Plan. Launched in January 2023, the Climate operational cost savings, organizations aiming to preserve capital should be embracing
Action Plan outlines steps to reduce carbon emissions, including energy audits at outdated as-a-service decarbonization as a financial imperative.
buildings and facilities to determine where energy-efficient equipment can be implemented,
leading to better-performing facilities and long-term cost savings for the entire county. To learn more about how we combine comprehensive facility decarbonization solutions
with innovative financing approaches, please visit: https://www.johnsoncontrols.com/smart-build-
To learn more about the NRG Park project, watch our video here. ings/net-zero-buildings/net-zero-buildings-as-a-service.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Reduce embodied carbon of our products

To drive the shift to net zero buildings, we are not just looking at delivering net zero operations.
We also focus on cutting the embodied carbon of our products. In fact, in new product
development, we include sustainability throughout our stage gate review process for
innovation and new product development, including key performance indicators for:

1 Material reduction
Committed to Over 80 percent of
2 Use of recycled content purchasing 10 percent our steel purchases in
near net zero steel the US produced
3 Elimination of single-use plastic by 2030 from recycled
scrap materials
4 Design for end-of-life recyclability

These four areas align with our definition of sustainable revenue to demonstrate our focus
during product development, while also delivering circularity principles at this stage.
Circular steel program with Nucor Steel

Through the First Mover’s Coalition, we’re committed In 2023, we launched a circular steel program with Nucor Steel. With this, 100 percent of steel
scrap from five major US manufacturing locations, including Norman, Oklahoma and Wichita,
to purchasing 10 percent near net zero steel by 2030
Kansas, will be recycled in new purchased products. To complement this, we have a circular
aluminum program that sees 100 percent of aluminum scrap from these same Norman and
As a founding member of the US State Department and World Economic Forum’s First Movers
Wichita plants going back to our aluminum supplier.
Coalition, we’re committed to reducing our impact in high-carbon sectors, dialing down
carbon in one of the tough-to-abate sectors: steel. Through the First Mover’s Coalition,
As part of our program to reduce embodied carbon across our portfolio, we have also launched
we’re committed to purchasing 10 percent near net zero steel by 2030. As such, Johnson
a closed-loop steel recycling partnership program with Nucor Steel, through which thousands
Controls continues to make significant progress in reducing embodied carbon, with over
of tons of scrap steel from Johnson Controls facilities will be recycled using electric arc furnace
80 percent of our steel purchases in the US, and 50 percent globally, produced from recycled
steel-making technology, which generates 60 to 75 percent fewer emissions than traditional
scrap materials using low-carbon electric arc furnace steel-making technology, which
steel manufacturing. As an added incentive, this will also allow us to purchase the resulting
averages 60 to 75 percent less carbon than traditional blast furnace steel manufacturing.
low-carbon steel products from Nucor.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Assessing product life cycle carbon footprint across our portfolio Case study:
In 2022, our product teams began using the Chartered Institution of Building Services New Aalborg University Hospital
Engineers (CIBSE) TM65 methodology to estimate embodied carbon in the materials
used to construct our products. Today, we can use the TM65 standard to estimate the
One of Denmark’s most effective and
carbon emissions of almost any product we manufacture at each stage of its life, from
production to disposal. In 2024, we’ll expand our breadth in two key areas: most sustainable district cooling systems.

TM65 for new products New Aalborg University Hospital (NAU) is a vast In fact, the district cooling provided by this
1 We’ll continue to complete TM65 methodology calculations for existing 330,000m2 new hospital complex serving the project is up to eight times as efficient as
products, while also beginning to require this evaluation as part of the new entire region of northern Jutland, Denmark. conventional cooling.
product introduction process for some product lines. While the hospital needs reliable equipment-
cooling and air-conditioning systems, patients The energy plant comprises a heat exchanger
Track product weight through development also need the air to be carefully filtered and and pump facility with three Sabroe ChillPAC
2 conditioned to provide a comfortable temperature chillers and two Sabroe HeatPAC heat pumps,
Tracking the weight of our new products through the development process
will allow us to better evaluate opportunities for material reduction, while and humidity levels, especially in summer. as well as other auxiliary equipment.
maintaining high product quality and safety standards. These material reductions
will also contribute to a reduction of the overall product embodied carbon. With this in mind, a district cooling solution was As a result, the new hospital can look forward
provided by Aalborg Forsyning, exploiting the to saving 80 percent on electricity compared to
low temperature found at the bottom of a previous systems, while also delivering annual
nearby artificial lake to deliver cooling for air- CO2 savings of approximately 500 to 700 tons.
conditioning, machines, servers and scanners.
This project is expected to be one of the most As an added benefit, the facility eliminates noise
energy-efficient refrigeration plants in the world, and vibration, and even occupies less space.
with an all-year efficiency of up to 23, where
conventional plants range from two to five.

Saving 80 percent Savings of approx.

on electricity 500 to 700 tons
compared to of C02
previous systems

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Case study:
Zero carbon sportsplex

The City of Brampton’s innovative

pilot program has the power to
serve as a model for municipalities Zero Carbon Retrofit Johnson Controls OpenBlue
pilot project technology to provide ongoing
on the journey to net zero,
monitoring, measurement
demonstrating impactful action
and reporting
with tangible cost and
energy savings.

The Susan Fennell Sportsplex in the City of rooftop solar PV unit installation, a ground
Brampton, Canada’s ninth most populated
city, is the site of the Zero Carbon Retrofit
source heat loop, solar thermal pool heating
and Johnson Controls OpenBlue technology to $15.7 million Expected cost reductions
of nearly

$195,000
pilot project as part of the city’s long-term provide ongoing monitoring, measurement
plan to be net zero by 2050. Johnson and reporting. Investment through Canada’s
Controls conducted a thorough assessment
Green and Inclusive Community
of the 173,546 square-foot facility to guide Digital energy-efficiency monitoring by per year
a program that will enable the city to Johnson Controls OpenBlue technology will
Buildings (GICB) program
achieve net zero carbon operating emissions. help the complex meet the Canada Green
Emphasizing operational efficiency and Building Counsel’s Zero Carbon Building™
addressing updates to major building (ZCB) Performance Standard which requires
systems were critical considerations in annual verification.
the planning process.
The outcomes of the project will not only facilitate cost
Funding for this sustainability project savings for the City of Brampton, with a reduction of
Through energy conservation measures, includes a $15.7 million investment through
annual utility costs by approximately $195,000,
electrification, innovative energy solutions, Infrastructure Canada’s Green and Inclusive
and carbon-free energy sources, the city is Community Buildings (GICB) program and $10
but also drive progress toward net zero goals and enhance the dynamic space for resident
guaranteed outcomes based on achievement million in funding through the Green Municipal
use. Fostering community awareness and involvement in these efforts, project progress will
of GHG emissions reduction. The project Fund’s Community Buildings Retrofit initiative.
be on display on kiosks in the facility.
includes HVAC upgrades and optimization,

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Supplier environmental impact

Engaging with our suppliers to build sustainable

roadmaps for decarbonization
2-6 | 204 | 308-1 | 308-2 | 414

With external stakeholder focus on lowering emissions and increasing

energy efficiency, our suppliers play a key role in accelerating our
We quadrupled the sustainability delivery of net zero buildings.

rating weight on supplier Since its launch in 2021, the Johnson Controls However, if a major change does take place, we’ll
Supplier Sustainability Program ensures our require a new assessment to be performed within
scorecards in 2022 suppliers abide by the principles of our Code 12 months of the change.
of Ethics through a detailed assessment covering
environment, labor and human rights, ethics and Our supplier scorecards weigh sustainability
It’s now weighted at 21 percent of preferred suppliers’ sustainable procurement. equal to cost, quality and delivery in supplier
global scorecards, making sustainability equal to cost, performance evaluations. Our sourcing board
quality and delivery. Currently, 38 percent of our enterprise reviews the supplier scorecard and specific
procurement spend, accounting for over sustainability ratings, while category managers
1,600 suppliers, has been assessed in detail also review relevant supplier evaluations.
across each of these dimensions. Our target
38% of our procurement spend, is to have detailed assessments of 50 percent Where a supplier has scored poorly, we
of our supplier spend by the end of 2026 and expect all issues will be immediately resolved
over 1,600 suppliers, 80 percent by the end of 2028. A full assessment by the supplier or that the category manager
is expected to be performed once every three will raise the issue with the procurement
has undergone third-party independent sustainability years, provided there were no material changes leadership lead for immediate risk mitigation.
performance assessments related to the supplier, such as leadership,
footprint or industry participation. Suppliers identified as high-risk require
an improvement plan.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Greenhouse
gas emissions
Johnson Controls has a global,
enterprise-wide commitment
to achieve net zero scope 1
and 2 emissions by 2040.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Material topic 2:
Greenhouse gas emissions Our scope 1 and 2 carbon reduction strategy is driven
by four key strategies:
Scope 1 and 2 1. Facility decarbonization
302 | 305
2. Refrigerant loss reduction in manufacturing
Our approach - commitment to achieving net zero
3. Fleet emission reduction through efficiency and electrification
Johnson Controls has a global, enterprise-wide commitment to achieving net zero
scope 1 and 2 emissions by 2040, 10 years ahead of the goals set out in the Paris 4. Transition to renewable electricity globally
Agreement. Climate action is urgent and the time to act is now. We’re ahead of
schedule toward achieving this commitment, having already reached a reduction
of 43.8 percent in scope 1 and 2 emissions, saving over 473,000 metric tons of
absolute greenhouse gas emissions across our global operations since 2017. Metrics:

100% of electricity globally will be met or matched with renewables in 2040

Targets from our 2017 baseline:

• 25% reduction of energy intensity in 2025 We demonstrate our commitment to GHG emission reduction by:
• 25% reduction of greenhouse gas emissions intensity in 2025 • Providing full transparency of our GHG emissions through annual reporting and limited
assurance by a third-party independent auditor
• 55% reduction of absolute scope 1 and 2 emissions in 2030, as approved
by the Science Based Targets initiative. Net zero scope 1 and 2 emissions
• We advocate for climate policy at global, national and sub-national levels that align with:
in 2040 in alignment with The Climate Pledge
- the transition to low-GWP refrigerants
- incentives for buildings to operate more efficiently
- the acceleration of the energy transition to renewable energy

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Overview Global sustainability How we work Data
and solutions emissions employee experience

2023 progress from our 2017 baseline Case study:

Johnson Controls global HQ at
One Albert Quay in Cork, Ireland
25 percent reduction of greenhouse
gas emissions intensity in 2025 52.4% Our global headquarters is a LEED Gold-certified building,
Progress: We set out to reduce emissions intensity emissions
leading by example with effective space utilization, minimized
by a quarter, a target we have more than doubled, intensity
reducing emissions intensity by 52.4% percent to date reduced energy consumption and optimized equipment performance.
The Johnson Controls global headquarters building However, One Albert Quay has also gained
at One Albert Quay in Cork, Ireland, is designed significant sustainability upgrades through OpenBlue
25 percent reduction of energy intensity
in 2025 22.5% to LEED Gold standards. In fact, it’s the first smart
building in Ireland and is widely known for
technologies, including energy audits and advisories,
as well as the measurement, monitoring and
energy intensity embracing new technology to benefit both evaluation of progress toward carbon emissions
Progress: We have already achieved a 22.5 percent
reduced its occupants and the environment. We wanted and net zero energy goals. This has proved crucial
reduction of energy intensity to date
this building to be a blueprint of the future for smart in terms of defining sustainability strategies and is
buildings, leading the way in optimized occupant complemented by Green Hub kiosks in the building
experience, safety and security, and sustainability. that highlight carbon goal accomplishments,
55 percent reduction of absolute scope To achieve this, we turned to our OpenBlue increasing occupant awareness in the process.
1 & 2 emissions in 2030 technology and its suite of connected solutions,
as approved by the Science-Based Target initiative
(SBTi). Achieve net zero scope 1 and 2 carbon 43.8% and the transformation has been clear for all to see.

Through our use of OpenBlue technology, we

Our global headquarters is now an inspiring example
of smart sustainability for customers and visitors to
experience. Our OpenBlue technologies have helped
emissions in alignment with The Climate Pledge by 2040 absolute scope
1 & 2 emissions have delivered optimized space performance and us to reduce energy usage by 45 percent through
Progress: 43.8 percent absolute reduction of scope 1 and reduced seamless workplace experiences for occupants, lighting optimization in unoccupied rooms, leading to
2 emissions, eliminating over 473,000 metric tons of including space booking, navigation, comfort energy savings of around $12,000 per year and
CO2e to date controls and more. approximately 0.4 MT CO2e per month. In line with
this, One Albert Quay is also zero-waste certified,
In addition to this, automated equipment fault prioritizing environmentally-conscious waste
detection and diagnostics serve to further collection, treatment and disposal to meet the
100 percent of electricity globally will be
met or matched with renewables by 2040 42.1% optimize comfort, reduce costs and ensure
operations continuity.
stringent waste management standards of the
Johnson Controls global sustainability program.
electricity met
Progress: 42.1 percent of electricity purchased globally is or matched by
met or matched by renewable energy
renewables

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Carbon transition: Scope 1 and 2 GHG emissions Facility decarbonization

The three primary contributors of our scope 1 These teams develop strategies to achieve Buildings account for nearly 40 percent of all
and 2 emissions are energy usage at our global net zero, as well as three-year executable global greenhouse gas emissions and our Johnson
facilities, refrigerant loss in manufacturing and roadmaps to ensure organizational alignment
Controls facility footprint is no exception. In fact,
our global fleet. We measure emissions monthly, on the improvement measures, timing and
applying continuous improvement throughout the investments needed. our facilities accounted for nearly 50 percent of
year, and have teams organized under our climate our total scope 1 and 2 emissions in 2023.
workstream to drive our carbon transition.
With this in mind, we launched the Johnson In 2023, we launched the Facility
Controls Facility Decarbonization Program Decarbonization Program at the next
As of 2023, scope 1 and 2 emissions have been reduced by in 2021 in collaboration with our Sustainable three major facilities in the United States:
43.8 percent since 2017, while 42.1 percent of our electricity Infrastructure business. In this program, Grantley, PA; Waynesboro, PA; and
globally is met or matched by renewable sources of energy. a cross-functional team of global facilities, Marinette, WI. Including Norman, OK,
operations, environmental health and these four facilities contribute 40 percent
safety, information technology and finance of Johnson Controls scope 1 and 2 emissions
professionals, along with our in-market from manufacturing sites in the U.S.
subject matter experts in building
decarbonization, determine a cost- In addition, our corporate headquarter
effective and impactful plan to net zero buildings in Glendale and Shanghai are
through high-efficiency infrastructure, both LEED Platinum-certified, while our
cutting-edge software, renewable energy headquarters in Cork is LEED Gold-certified.
solutions and ongoing operations. This is the LEED certification is a third-party
same approach we bring to customers with certification developed by the US Green
our Net Zero Buildings offering. Building Council, with platinum being the
highest level of certification. These buildings
The first major stop on our journey was a serve as global examples of leading energy,
900,000-square-foot manufacturing plant water and material efficiency, along with
in Norman, Oklahoma, that also served building decarbonization.
as a flagship research location and our
Rooftop Center of Excellence. This project
is on course to achieve a 43 percent
reduction in emissions and $960,000 in
annual savings by the time of its
completion in 2024.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Case study: To further improve energy efficiency, a 1.56-megawatt solar

Norman, Oklahoma photovoltaic carport solution with vehicle charging stations was
installed to help meet energy demand with on-site renewable energy.

Our plant in Norman, Oklahoma, is expected to decrease its annual The project is expected to:
greenhouse gas emissions by 43 percent and generate $960,000
in annual savings. The lessons learned will help power the
decarbonization journey of organizations across the globe. Reduce GHG emissions
Johnson Controls decided its Norman plant, a 900,000-square-foot space, would be its first industrial by 43 percent
site to be put on a path to achieve emissions reductions from major equipment and process upgrades.

How we solve for zero: design, digitalize, deploy

With our portfolio of solutions, we simplified the journey into three key areas:
Save 3,500 kilogallons of
Our team of experts performed an in-depth assessment to set a course to design,
Design digitalize and deploy upgrades to the facility without disrupting production.
purchased water annually
The Norman plant was selected as the first site because of its high potential impact.

Digitalize
Johnson Controls OpenBlue technologies and solutions were used so that we could create
a healthier environment, while improving resource efficiency and carbon reduction.
Reduce energy consumption
OpenBlue technologies unlock insights into emissions data, breaking down data silos
and providing analytics that allow more efficient management of this complex, by 26 percent from a
multi-faceted plant in order to deliver sustained lower emission outcomes. FY17 baseline
We connected the Norman plant, infrastructure and the grid so we could access
data that was critical to making informed decisions, near real time, to solve for
both cost and carbon.

Deliver $960,000 in
We deployed key strategies to turn our plan into reality, including central utility plant annual energy, operating


Deploy
redesign and retrofit, building envelope improvements, compressed air system
replacements, plug load controls, water conservation measures and ongoing
and maintenance savings
maintenance and management of efficiency improvements.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Refrigerant loss reduction in manufacturing Refrigerant transition to low GWP

In 2023, we continued transitioning the refrigerants in our products to low GWP within our
Our refrigerant decarbonization roadmap includes both the reduction North America operations, a process we started in 2016. These changes will address policies
of refrigerant loss within facilities and the global transition to products that target the phase-down of hydrofluorocarbons (HFCs), including the American Innovation
with low and ultra-low Global Warming Potential (GWP). and Manufacturing (AIM) Act of 2020, a landmark law supported by Johnson Controls that will
drive innovation in cutting carbon, as well as operational costs.
Our team of environmental health and safety, operations and research and development
professionals works collaboratively to build the transition plan for decarbonizing our refrigerants. Over the next two years, we’ll be fully transitioning
Due to the significant actions we’re taking, emissions from refrigerants continue to drop and US operations to low-GWP refrigerants and extending
represented just 17 percent of overall operational emissions in 2023.
best practices to our global facilities.

While our progress has been significant,

we’ll drive further improvements in
2024 and ensure that slashing carbon from Fleet emission reduction through efficiency and electrification
refrigerants is a key and successful part
Our second largest contributor to GHG emissions is our global fleet,
of our drive to 55 percent operational comprised of both field service operations and management fleet.
emissions reductions by 2030. In 2023, this accounted for more than 35 percent of our total scope
1 and 2 emissions. Over 72 percent of these emissions are in the US,
17 percent are in Europe, the Middle East and Africa, and the balance
To help achieve this, multidisciplinary management teams is across Canada, Mexico and Asia Pacific.
actively reduce refrigerant loss through:
We have a formalized working group dedicated to fleet emission reductions, working on
optimizing our current vehicle use and the transition to electric vehicles. We analyze our fleet
• Annual goal setting
performance on a monthly basis, including the use of telematics to understand trends and
driving patterns. We systematically bring in fuel-efficient vehicles and right-size the equipment
• Education and awareness needed on our field service operations to decrease weight and increase load factors.

• Optimizing current management of processes, standards and protocols In 2023, Johnson Controls launched the Early Adopter Electric Vehicle (EV) program in the US,
along with our first EV request for proposal across fleet manufacturers, giving us a thorough
• Investment, implementation and sharing of best management practices, understanding of the industry, including vehicle capabilities and charging infrastructure, as we
including leak detection programs, digitization and monitoring build our decarbonization roadmap to 2026. Our first full wave of electric vehicles will be
implemented in 2024.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Transition to renewable New solar projects to power

electricity globally operations with renewable energy
100 percent of our
We continuously seek lower carbon, In 2023, Johnson Controls entered into an agreement US electricity use
renewable electricity. with Constellation, the largest producer of carbon-free is met or matched by
energy in the US, to support the development of two
In 2023, 42.1 percent of the electricity we purchased
new solar plants to match the power needs of four
renewable electricity.
globally was met or matched by renewable sources of
energy. To complement this, we have invested around major Johnson Controls facilities. In addition to our renewable electricity and
the world to deliver renewable electricity directly to on-site renewables, we voluntarily purchase
our facilities. Starting in December 2024, this 15-year commitment will see Johnson certified Green-e Energy renewable energy
Controls receive energy that’s matched by Green-e® Energy-certified certificates (RECs) to match 100 percent
Sites with on-site renewable electricity: renewable energy certificates (RECs) to power four world-class Johnson of the greenhouse gas emissions for the
Controls engineering and manufacturing facilities in Pennsylvania, all remainder of our electricity use at our
• Glendale (US) • Corropoli (Italy) dedicated to advancing net zero buildings. The first is the New Freedom US office, manufacturing, research and
• Shanghai (China) • Kadi (India) global research and development complex, where Johnson Controls is development, and branch locations.
• Matamoros (Mexico) • Wuxi (China) leading the charge in heat pump development, machines that enable
• Puspokladany (Hungary) • Guangzhou (China)
the full electrification of buildings and generate three to eight times
• Neuruppin (Germany) • Taoyuan (Taiwan)
as much energy as they consume. The others include an advanced
• Cologno (Italy) • Norman (US)
• Pune (India) chiller manufacturing center and two facilities that are driving
hyper-efficiency in industrial refrigeration applications.

Since 2021, we’ve also had a green tariff in Wichita, Kansas, near our
1.3-million-square-foot heating, ventilation and air conditioning (HVAC)
manufacturing plant, with the capacity to produce 100 percent of this
facility’s electricity. The Johnson Controls Wichita plant receives its wind
energy from Soldier Creek Wind Farm, a 300-megawatt wind farm in
Nemaha County, Kansas.

The contract will result in an emissions savings

of over 14,000 MT CO2e as compared with the
local grid.

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 Sustainable products Greenhouse gas Social
Social impact and
and
Overview Global sustainability How we work Data
and solutions emissions employee
employee experience
experience

Social impact
and employee
experience
Our vision: foster a culture that
attracts and engages people
who want to make a difference.

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 Sustainable products Greenhouse gas Social
Social impact and
and
Overview Global sustainability How we work Data
and solutions emissions employee
employee experience
experience

Material topic 3:
Social impact and employee experience We have developed ambitious strategies to address
social impact and employee experience:

Our approach 1. Implement diversity, equity and inclusion mission, vision and roadmap, including employee
experience, business resource groups, learning and development, and external impact

Our vision: foster a culture that attracts and 2. Create a Zero Harm culture and drive employee well-being
engages people who want to make a difference.
3. Increase the representation of women leaders globally and minority leaders in the US
We firmly believe that our greatest resource is our people. They are what set us apart
and allow us to achieve and maintain our exceptional standards. We also understand
our role in empowering our employees to bring their authentic selves to work each day,
in turn, adding value, fostering creativity and inspiring change across our organization.
Metrics:
In our operations and in our communities, we’re committed to our vision of Zero
1. Grow employee engagement groups globally
Harm to people and the environment, and have created robust policies and strategies
to support this vision.
2. Launch an initiative to educate the next generation of diverse leaders in the
sustainable building industry

Targets:
• Reduce recordable safety incidents by 25 percent in 2025 from our We demonstrate our commitment to social impact
2017 baseline
and employee experience by:
• Increase diverse supplier spend at a rate exceeding revenue growth
• Growing engagement across all Business Resource Groups (BRGs)
• 2.0M employee volunteer hours by the end of 2025
• Investing and engaging in the communities where we live and work
• 80% of volunteer hours aligned to the UN Sustainable Development Goals

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2023 progress
Metric: Grow employee engagement groups globally.

Reduce recordable safety incidents by

25 percent in 2025 from our 2017 baseline. 34.6% Progress: In fiscal year 2023, our Business Resource Groups (BRGs) made tremendous
progress, with new membership growing by 36 percent in just one year.
36%
reduction in increase in
We also launched two new Business Resource Groups, Parents & Caregivers
Progress: We have reduced recordable safety incidents recordable safety new BRG
Together for parents and caregivers, and INSPIRASIAN for supporting and
by 34.6 percent since 2017 and we continue to work incidents members
uplifting Asia Pacific Island heritage.
toward our global vision of Zero Harm.

Metric: Launch an initiative to educate the next generation of diverse leaders

Increase diverse supplier spend with in the sustainable building industry.
women- and minority-owned businesses
at a rate exceeding revenue growth.
41% Progress: Since its inaugural year in 2021, the Johnson Controls Community College Partnership
Program has been on track to donate up to $15 million by the end of 2026 to expand
Progress: In 2023, we increased our spend on more spent access to educational programs in HVAC, fire, security and digital disciplines.
certified diverse business enterprises by approximately with diverse
41 percent compared to 2022, achieving a significant suppliers Now in 30 community colleges, the program engages students from historically
year-over-year increase in diverse spend and greatly underrepresented groups and supports them in preparing for and embarking on
exceeding our goal. career paths in sustainable building practices.

Volunteer two million hours and align

80 percent of volunteer activities
with the United Nations Sustainable Now in 30
1.92
Development Goals (UN SDGs) by 2025. community colleges
Progress: Johnson Controls employees logged On track to donate up to
61,521 volunteer hours in 2023, the most volunteer
million
hours recorded in one year since 2017. Our employees
have volunteered and recorded more than 1.92 million
volunteer
hours $15 million
accumulated hours, with 82 percent of those hours by the end of 2026
aligned to the UN SDGs.

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Diversity, equity and inclusion One of our priorities is to ensure that we employ
a workforce that reflects the communities we live in
Our diversity, equity and inclusion (DE&I) mission,
vision and roadmap inform our strategies and drive
302 | 305 and the customers we support. We provide products business objectives, further enabling our culture of
and services across the globe and our workforce inclusion to succeed.
reflects the diversity of thoughts, ideas and lived
We recognize the synergies that exist between experiences needed to serve all markets. Our 2023 diversity, equity and inclusion annual report
and our EEO-1 are reported and publicly available on
culture and the employee experience. The power of our people is strong and we continue our website. As of the end of 2023, 24% of our leaders
to leverage each individual’s unique expertise to globally were women and 25.1% of leaders in the U.S.
As a result, we strive to curate a multi-dimensional, solve difficult customer challenges as a team. were minorities.
world-class employee experience, leading to a sustained
Our competitive advantage is strengthened when we
culture of inclusion. We strongly believe in this approach can recruit and leverage diverse backgrounds in an
because a sustained culture of inclusion, in turn, sustains inclusive, high-performance culture.
a world-class employee experience.

Our mission Empower every employee to take an active role in creating a culture that
values uniqueness, celebrates creativity and drives innovation.

Employees will bring their authentic selves to work each day. Our rich
culture of inclusion will lead to inclusive mindsets and behaviors, unlock
Our vision engagement, accelerate productivity and foster innovation - leading to
exceptional customer outcomes.

Our dedication to DE&I starts with our values. We lead with integrity and
Culture of purpose, focusing on the future and aligning with our customers’ visions
for success. Our high-performance culture ensures that we have the
inclusion best talent, always highly engaged and eager to innovate.

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Diversity, equity and inclusion pillars

Employee Business Learning & Talent External Metrics &

Experience Resource Development Management Impact Measurement
Groups

Employee experience Business Resource Groups Learning and development Talent management External impact Metrics and measurement
(BRGs)
At Johnson Controls, we By embedding DE&I into The Office of Diversity, Equity We support the communities We understand that without
want every employee to feel BRGs consist of employees the development tools and & Inclusion collaborates with in which we live and transparency, progress is not
supported, both personally who share similar interests, resources that support our talent management teams work. We’re proud of the sustainable. Analytics inform
and professionally. That’s backgrounds, experiences employee growth, as well as to attract, develop and partnerships we have our goals and drive inclusive
why we focus on employee and/or characteristics. These prioritizing continuous learning retain best-in-class talent cultivated and we continue outcomes.
experience and drive an employees share a common at all levels of the company, from around the world. to expand our global reach
employee-owned culture interest in professional we continue to enable the to form new relationships
of inclusion that values and development and improving mindsets and behaviors that that align with our values
celebrates talent. corporate culture, leading foster our culture of inclusion. and vision.
to exceptional customer
outcomes.

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Employee experience

Driving inclusive mindsets and behaviors in 2023: amplifying voices and actions

Recognizing employees who live our DE&I mission

Following a successful launch in 2022, we continued our employee

Diversity, Equity & Inclusion Distinction Awards in 2023. These
awards recognize employees who are living our company’s DE&I
mission by taking an active role in creating a culture that values
uniqueness, celebrates creativity and drives innovation.

Employees throughout the organization can nominate individuals Employee roundtables Perspectives Listening Series
who have made substantial multi-business unit or enterprise impact.
In fiscal year 2023, over 800 peer nominations were submitted, We value the voices of our diverse talent and continue to use our Over the last year, thousands of employees
with 24 employees selected as winners by a committee based employee roundtables to amplify those voices. These global sessions attended the Perspectives Listening Series
on program criteria. are hosted quarterly with the aim of providing team members with a to engage in honest, courageous and
sense of belonging, ownership, autonomy and empowerment regarding authentic conversations between colleagues
The Diversity, Equity & Inclusion Distinction Awards also include a their careers and their ability to contribute to the culture and work on workplace-related topics that are timely
badge that allows employees to use our Bravo employee recognition processes at Johnson Controls. and relevant to employees, our communities
platform to give real-time, peer-to-peer recognition to team and global society.
members who have adopted key DE&I behaviors that promote The goals of these roundtable discussions include:
our culture of inclusion. These sessions encourage meaningful
• Providing a safe, open forum to capture transparent discussions between employees that highlight

800 peer nominations employee feedback and foster leadership connection

• Understanding how DE&I resonates personally with team members
unique experiences, diverse mindsets and
the prevailing resilience our employees bring

were submitted, with 24 • Garnering feedback about the overall employee experience
to work each day.

at Johnson Controls
employees selected • Understanding the sentiment among field and front-line

as winners workers regarding our DE&I culture

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Global initiatives Future Leaders Internship Program

Dimensions pilot The Johnson Controls Future Leaders Internship Program was named
on Way Up’s 2023 Top 100 Internship Programs list in North America.
In 2023, we announced Dimensions, a new self-nomination
talent development program. It was created in response
to data, internal feedback and research that reflected a
This robust, best-in-class intern experience curates a rich, challenging and rewarding
experience for each intern through engaging programming, including:
398
interns in 2023
potential gap in experiences, development and networking
opportunities for underrepresented employees. • An eight-week innovation challenge
• Weekly leader-led professional development sessions
The six-month curriculum includes webinars, curated • Group networking with our employee-led resource groups
learning sessions, mentoring and more. • Volunteering opportunities within local communities

Sponsoring BRGs: The program provides structured opportunities to grow both professionally and personally,
with access to our senior leaders, including our Chief Executive Officer, providing an enriching
experience for interns and leadership alike.
participation rate in
In fiscal year 2023, 398 interns took part in the Future Leaders Internship Program worldwide, the innovation
with a notable 92 percent participation rate in the innovation challenge. In addition to this, of challenge
the interns who took part in the program, 41 percent were female and 47 percent were diverse.
Sessions are offered to progress competencies aligned
with our talent development and career tools and We have purposefully identified key performance indicators and metrics for this program, which
processes. Each session features a business leader we monitor alongside numerous pulse surveys throughout the internship to ensure the program
who provides additional context to the session topic, not only meets, but exceeds the expectations of our interns and their managers. The primary
as well as encouragement to program attendees. goal is to ensure each intern finishes their program enriched with new experiences, new skills,
strengthened professional competencies and an expanded network to yield additional
Supplemental curriculum is also provided, while professional opportunities. One of Way Up’s 2023
small groups allow participants to collaborate. Top 100 Internship
Our hope is that when each intern completes the program, they feel a great sense of belonging Programs in North
and seek out opportunities to start their professional careers at Johnson Controls. America

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One Albert Quay Art Gallery India Engineering Center South Africa initiatives
During Ireland’s national culture week in Our India Engineering Center has played an Growth in the employment equity plan
September, we inaugurated our on-site art integral part in driving our DE&I mission.
gallery at One Albert Quay, Cork. There has been significant growth in our
Since its formation in 2019, the team has developed initiatives employment equity (EE) plan, which is designed
The Quays Gallery is reset every quarter with employee art that align with the global DE&I mission, vision and pillars. to achieve set goals outlined in the five-year
and makes use of a beautiful space, giving everyone a plan. The targeted focus includes improving
chance to share their creative side. For example, the JobsForHer event in Hyderabad, Pune, focused representation at various levels of the organization
on gender diversity and people with disabilities. It included and we have already seen growth in the
In January, we displayed a photography exhibition entitled strategies for promoting gender diversity in the workplace, employment of designated groups, including
New Beginnings. Following this, our June exhibition was including gender-neutral hiring, as well as development programs, diverse representation within top management.
inspired by the Johnson Controls sustainability report, mentorships and preparation programs for students at women’s
while in September, our theme was World Cultures. colleges. The event also addressed gender balance across career Breakfast engagements with female
levels and the pandemic’s impact on diversity ratios. team members
The Gallery is currently exhibiting the new Business Resource
Group (BRG) logos and will exhibit a trees-themed exhibition Discussions explored strategies for attracting diverse Launched in fiscal year 2023, these engaging
for Earth Month using recycled frames and photographs talent, advancing careers for individuals with disabilities breakfast sessions provide a platform for female
printed on recycled paper. and promoting equal opportunities, emphasizing the team members to discuss their experiences,
importance of inclusive facilities. challenges and aspirations, further fostering a
supportive and inclusive environment. During these
This event highlighted the challenge of turning policies sessions, participants are encouraged to discuss
into action and stressed the importance of consistent topics freely and openly.
implementation in advancing diversity and inclusion efforts.

Cork Pride parade

In July, Johnson Controls team members walked in the Cork Pride parade to celebrate
our local and international LGBTQIA+ communities and their allies, demonstrating that
we can show up as our authentic selves, no matter who we love or how we identify.

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Business Resource Groups (BRGs)

A rich culture of inclusion relies upon

an engaged and productive employee
population that feels not only empowered,
but excited to drive outcomes that matter Our community for employees passionate
about our company’s sustainability mission
Our community for supporting and uplifting
Asia Pacific Island heritage
Our community for LGBTQIA+
employees and allies
for the communities we serve.

Employees involved in BRGs power our culture at

Johnson Controls, providing strategic support for
the initiatives that make our people safer, our
buildings smarter and our world more secure.

Our BRGs consist of employees who share similar

interests, backgrounds, experiences and/or characteristics. Our community for employees living with Our community for Black and African Our community for working parents
disabilities and caregivers employees and their allies and caregivers
These employee-driven groups connect with and support
one another, while providing a safe environment for
respectful dialogue that encourages progress and growth.

While the tangible benefits of BRGs are measured by

membership growth, talent retention and consistent
innovations, the inspiring actions, engaging discussions
and meaningful progress that took place across Johnson
Controls throughout fiscal year 2023 highlighted the
Our community of emerging Our community for Hispanic and Latinx Our community for veterans around the world,
unquantifiable value BRGs bring to our company. young professionals employees and their allies military families and supporters

Growth and global footprint increase

Our Business Resource Groups (BRGs) made tremendous
progress in fiscal year 2023, growing new membership by The new BRG logos
36 percent in just one year. We also launched two new were displayed in
Business Resource Groups, Parents & Caregivers Together The Quays Gallery,
for parents and caregivers, and INSPIRASIAN for Cork, Ireland in
supporting and uplifting Asia Pacific Island heritage. December 2023.
Our community for supporting, uplifting,
engaging and inspiring women

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Count Me In Learning and development Self-paced learning:

DE&I channel
Count Me In is a voluntary self-identification We strive to incorporate diversity, equity and inclusion into
campaign that was launched as part of the In 2023, we expanded the web-based
our learning and development experience at Johnson Controls.
Johnson Controls DE&I strategy to encourage learning content on the in-house
employees globally (where permitted) and across DE&I channel within the Johnson
DE&I is embedded into leadership development programs, while opportunities to
all levels of the organization to self-identify. Controls Learning Hub, our platform
engage in virtual instructor-led workshops and self-service on-demand DE&I
Count Me In enables employees to define for learning content. Modern and
learning content are available to employees throughout the year.
themselves according to certain diversity intuitive, this platform uses artificial
elements and characteristics, such as race, intelligence and machine learning
ethnicity, gender identity, disability and
Diversity, equity and inclusion learning series that allows employees to own their
sexual orientation. learning experience.
In 2023, thousands of employees attended over 80 live DE&I workshops, including
the first open-enrollment session advertised to employees. As a result of this success, 13 new DE&I learning pathways
The campaign gives our employees the
we even expanded our facilitator network, with upwards of 30 facilitators certified and one new learning journey
opportunity to bring their whole authentic
throughout the year in Spanish, Portuguese, Hindi, Simplified and Traditional Chinese, were deployed on the platform in
selves to work, while helping Johnson Controls
Malay, Japanese, German, Italian and French. fiscal year 2023 to encourage DE&I
enhance overall employee experience with
an increasingly supportive and inclusive self-service engagement. As a result,
Though geared towards hiring managers, the content is freely available to current enterprise self-service DE&I learning
work environment.
and future leaders, and includes: hours increased by 34 percent.
• Understanding the Johnson Controls DE&I strategy and why workplace
diversity matters Four engagement campaigns were
• Exploring common types of workplace bias, the science behind unconscious also launched, resulting in a 117
bias and how to interrupt bias in our hiring, performance management and percent increase in completion of
decision-making processes the DE&I at Johnson Controls core
• Getting comfortable with being uncomfortable and creating an inclusive culture learning journey, a 76 percent
and a sense of belonging in the workplace increase in followers of the DE&I
• Learning strategies to become a more inclusive leader, understanding how to channel and the addition of 2,771
foster psychological safety and creating personal commitments to furthering new users.
our culture of inclusion

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Diverse hiring councils Talent acquisition

We support the continued attraction of top Some of these new hiring channels and
Hiring managers with strong records of development strategies include:
diverse team building and high-potential talent from across the globe with diversity,
individuals serve on diverse hiring councils. equity and inclusion embedded in our • Engaging with our Business Resource Groups (BRGs)
recruitment processes, candidate experience on employee referrals and engagement
Council members partner with hiring managers and talent
and hiring commitments. • Partnering with diversity-focused organizations
acquisition to assist with recruitment strategies, social
media sharing and interview panel participation and across the globe
Our talent acquisition teams put immense effort into identifying,
calibration, among other responsibilities. • Instituting diverse hiring councils across the business
attracting and recruiting diverse talent around the globe.
to help increase awareness of our hiring practices
They’re committed to providing our businesses with a qualified,
In FY22 and FY23, councils were created to support our
balanced and diverse talent slate during the recruitment process. • Investing $15 million over five years to help expand
global products, global supply chain, engineering and
To complement this, we have also hired dedicated diversity community college associate degree and certification
manufacturing strategy, commercial sales and building
talent acquisition leaders in order to focus on growing our programs in health, ventilation and air condition (HVAC),
solutions North America business. We also added councils to
diverse workforce. fire and security and digital building automation systems
support our building solutions EMEALA business, while
across the United States
establishing processes to help even more locations
We strive to provide career advancement opportunities for our
create councils. • Expanding our Future Leaders Global Internship Program in
employees. In fact, more than half of our management positions
our EMEA and APAC regions
are filled by internal talent. With a constantly evolving
marketplace, we’re also committed to workforce development
In addition to our internal posting process, our career opportunities
strategies that open new hiring channels for diverse talent.
are also shared via a variety of external diversity-focused job boards
and organizations, helping us reach a more expansive talent pool.

Investing $15 million

over five years to help expand community
college associate degree and
certification programs

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Diversity hiring manager toolkit Talent acquisition workshops

Building an inclusive workforce: navigating market trends and best
In partnership with talent acquisition, the office of DE&I developed
practices for hiring managers
a comprehensive 75-page guide for hiring managers to enable
best-in-class attraction, development and retention of diverse talent. We understand that it’s crucial for organizations to embrace diversity and inclusion in order
to thrive. With that in mind, we’re committed to doing not only what’s right, but what will
This toolkit supports hiring managers’ understanding of: allow us to keep innovating in today’s rapidly evolving business landscape.

• Diversity, equity, inclusion and belonging In FY23, our building solutions North America (BSNA), talent acquisition and DE&I teams
• The business case for creating teams that are diverse launched an interactive workshop designed specifically to equip hiring managers with the
• Our Johnson Controls DE&I strategy, mission and vision knowledge and tools necessary to build a diverse and inclusive workforce. The team hosted
• Building their own DE&I people strategy by leveraging connections to various a total of 11 workshops for business areas across the US and Canada, with participants
assets and groups that can help them recruit and hire diverse talent gaining a comprehensive understanding of internal representation in their area, as well
• Resources and processes to develop their teams into high performers as market trends and the importance of attracting top talent with diverse skillsets.
ready for their next role
• Tools to create an inclusive workspace and retain talent that is diverse Through insightful discussions and practical exercises, hiring managers also learned how to
craft inspiring job descriptions that resonate with candidates, ensuring that their open roles
stand out in competitive job markets, while providing clarity on job requirements.

This toolkit is designed Equitable candidate selection

to be a central source of was another key focus for hiring
policy, driving behaviors managers. Together, participants
assessed their abilities to identify
that ensure employees transferable skills and discussed
refrain from engaging in strategies to eliminate bias and
discrimination during ensure a fair evaluation process.
our employment process. They were also reminded of the
importance of structured
interviews, consistent assessment
methods that promote diversity
and inclusion, and strategies
to increase applicant pools.

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Talent mobility

We’re committed to not only finding the best talent, but developing
our employees at all levels to ensure we have the right talent, in the
right place, at the right time.

With this in mind, we completed a deep dive and setting employees up for success.
on how we rate and evaluate talent across Leaders were also provided with tools
the organization to better understand and resources to help make objective
opportunities for building robust and diverse assessments in the pursuit of diverse
talent pipelines. By applying a more strategic high-performing talent, bringing awareness
approach to talent mobility, we broadened to existing trends and the role biases,
the conversations around how we evaluate including unconscious biases, can play.
and assess talent. This created increased engagement and
understanding, while also giving leaders
When it comes to identifying and cultivating the opportunity to see diversity both
our emerging diverse talent, data analytics holistically and at the grade level. External partnerships
are key, providing additional opportunities
Diverse recruiting is key to ensuring we employ a workforce
that represents all our customers and stakeholders at every
level of the organization.

As a result, we place great emphasis on identifying, attracting and recruiting minority

and female talent. We also partner directly with several organizations to ensure diversity
in our candidate pools.

Some of these partners include:

• Society of Hispanic Engineers

• Latino Worker Project
• The Future of STEM Scholars Initiative
• Society of Women Engineers
• Department of Defense (DoD) Skillbridge Program
• American Corporate Partners (ACP)

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Diversity recruiting outreach

In alignment with the Office of Federal Contract • Talent acquisition – diversity sourcing team
We’ve expanded our talent acquisition team so that we can better
Compliance Programs (OFCCP), we have
identify diverse talent for our existing and future job openings. In addition to our commitment
implemented several outreach and recruitment The new employees bring experience working with diversity
efforts, including those utilizing technology, to diversity, equity and inclusion
organizations in North America, as well as technical skills that
agencies and non-profit organizations. Our goal enable us to increase visibility of job openings among diverse within Johnson Controls, we also
is to leverage these tools to act affirmatively talent. This team also works with others across our company to have a deep commitment to the
review job postings in order to prevent any adverse impact on any communities surrounding the
and to increase exposure of our employment group under protected categories as outlined by the Equal
opportunities to certain groups that require locations where our employees
Employment Opportunity Commission (EEOC), the Office
good-faith outreach as defined by the OFCCP. of Federal Contract Compliance Programs and other live and work.
federally-guided institutions.
See the ‘Community investment
• DE&I early career development
• SeekOut sourcing platform
and engagement’ section of this
Our early career team has access to diversity databases from
SeekOut is a recruiting platform that specializes in hard-to organizations like SHPE, SWE and NSBE, which they use in report to learn more.
-find talent. SeekOut also provides critical insights around recruiting diverse talent for our early career internships and
diversity, helping you to reduce unconscious bias and to find rotational programs. Using these sources, we invited over
underrepresented candidates. We work with SeekOut to build 1,800 students to an annual DE&I early career symposium
diverse pipelines with guidance from the platform’s usage at Johnson Controls, in line with our ambition of delivering
of external data. good-faith outreach to institutions with diverse populations.

• Executive search agency partnerships • Veterans

Executive search agencies support diverse talent attraction for Skillbridge is a program sponsored by the Department of Defense
business groups where we see lower percentages of diverse (DoD) to allow active-duty service members to participate in
talent in the external market supply according to Talent Neuron on-the-job training at a corporate civilian company for around
and LinkedIn Insights data. Some of these areas include plant 12 weeks. We’re currently partnered with Hiring Our Heroes,
management, operational leadership, commercial sales who work with the DoD and Johnson Controls to help
leadership and field sales. These agencies focus on increasing attract candidates.
our exposure to diverse candidates in North America that align
with these target business areas so that we’re more likely to
have diverse applicants for open positions.

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Community investment Smart We support organizations and programs that increase access to
education, especially in the areas of science, technology, engineering,

and engagement the arts and math (STEAM). This includes direct support to universities
and indirect support to K-12 schools through partnerships with non-profit
202-2 | 203-2 | 413-1 | 413-2 organizations whose programs drive student success.

We’re committed to advancing the well-being of our

communities and our planet, while supporting smart,
healthy and sustainable tomorrows.
Healthy We support organizations and programs in the areas of economic
mobility, safety, housing and homeownership, and health.

Through our philanthropy and community engagement, we strive to improve

the lives of individuals and to strengthen communities through employee
volunteerism and financial support for organizations.

Sustainable We support organizations and programs that help communities

become more sustainable, including those that preserve and protect
the environment and relief efforts following natural disasters such as
floods, fires, hurricanes and earthquakes.

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Promoting a global Our programs provide numerous ways for our employees to get involved
and support causes important to them. Total giving in 2023 included a
Total giving
culture of generosity
$12.7 million
combined $12.7 million from Johnson Controls and the Johnson Controls
Foundation, as well as $2.9 million from employees. In addition, Johnson
Controls employees logged 61,521 volunteer hours in 2023, the most
volunteer hours recorded in one year since 2017. Our employees have
To promote a global culture of generosity,
volunteered and recorded more than 1.92 million accumulated hours from Johnson Controls and the
we provide strategic programs that integrate towards our goal of two million volunteer hours by the end of 2025.
community involvement with business 82 percent of these volunteer hours are also aligned to the UN Sustainable
Johnson Controls Foundation
goals and drive employee engagement, Development Goals (SDGs), with the top SDGs supported including
Sustainable Cities and Communities, Quality Education, Zero Hunger,
intentionally drawing a connection

$2.9 million
Life on Land and Good Health and Well-Being.
between corporate funding and employee
volunteerism to multiply our impact, In addition to this, we also give back in the communities where we have a
particularly in underserved communities. presence through our long history of supporting United Way. Through its
strategic approach to advancing initiatives in education, economic mobility from Johnson Controls employees
and health, United Way is engaged in solving some of the most challenging
issues facing the communities where our employees live and work.
To add to this connection, our CEO serves on the board of the United

61,521 volunteer hours

Way of Greater Milwaukee and Waukesha County, the location of our
North American headquarters. Alongside many of our Executive logged in 2023
Committee members and countless colleagues from throughout our
organization, our CEO is excited to be on the front lines, pitching in on
initiatives to paint homes and to ensure that kids have backpacks with
necessary school supplies and that parents have diapers and other
sanitary and nutritional necessities to support their families. 82 percent of these volunteer
hours are also aligned to the
Each year, we hold an employee giving campaign in support of United Way, UN Sustainable Development
where many of our employees donate generously and volunteer for their Goals (SDGs)
local United Way, as well as other organizations supported by United Way
in their communities. Last year, our campaign led to nearly $4 million in
contributions to critical United Way organizations.

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Community engagement We encourage our employees to become involved with their local
communities and to support causes that are important to them,
202-2 | 203-2 | 413-1 | 413-2 recognizing what an incredibly rewarding experience it can be to
give back and to build connections with the community.
In alignment with our company vision and values, we strive
to be a good neighbor and a positive community partner.

We consider the communities where we do business as important stakeholders

We also encourage employees to form volunteer teams and to work
and we believe that community involvement and engagement programs enhance
our relationships with our communities, customers and employees. with local non-profit organizations to build smart, healthy and
sustainable communities.
Through our employee volunteerism and philanthropic efforts, we aim to improve
the lives of individuals and to strengthen communities, in turn creating smarter,
healthier and more sustainable tomorrows.

When employees log volunteer hours, Johnson Controls recognizes

their volunteer time with a $10-per-hour contribution to the non-profit
As part of our community engagement strategy, we:
organizations they’re passionate about. Similarly, when employees
• Focus on organizations that serve locations where we have a significant donate to eligible non-profit organizations, their donations are
presence and those with a national or global reach matched dollar for dollar, in accordance with the parameters of
our gift-matching program.
• Prioritize underserved populations and communities

• Align with UN Sustainable Development Goals

• Help through financial and in-kind contributions, Our community engagement occurs in many ways throughout the year,
as well as volunteer support
including through several key philanthropic and volunteer initiatives.

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Community College Partnership Program expansion

Launched in 2021, the Johnson Controls Community College

Partnership Program in North America provides funding to
expand associate degree and certificate programs in heating,
ventilation and air conditioning (HVAC), fire, security and
digital disciplines.

These grants support the programming, personnel and equipment necessary to

recruit and retain students and ensure they’re successful in completing of a
certificate or degree program.
To add to this, more than 100 of our employees College Partnership Program in India
currently serve as volunteer educators and mentors as
The program aims to enroll students from historically part of the program, providing students with tutoring, Our College Partnership Program in India grew from
underrepresented groups in local technical college programs counseling and real-world experiences. We’re also two to three colleges this year, with a college in
launching a formal mentoring program for the students, Gurgaon adding to the two colleges Johnson Controls
to highlight thriving career paths, spur local economic with an eye toward ensuring an increasing number of supports in Pune. Unlike the North American program,
development, narrow the global skilled labor gap and students have a personal connection to a professional which aims to develop skilled technicians, this program
support students who may otherwise not have had the in the field. Johnson Controls mentors receive focuses on giving tuition support to women from
opportunity to attend college. training to effectively support students in pursuing impoverished areas who aspire to attain bachelor’s
a career pathway towards a family-supporting job. degrees in business-related skills.

To this end, the program announced 10 partner colleges in North America in each To date, this program has served more than 2,600 Funding also helps support skill development
of 2021, 2022 and 2023. All colleges in these three North American cohorts received students. Of those, more than 500 students have programming and related education needs
an initial grant of up to $100,000, renewable for up to three additional years. By the received scholarships to cover their tuition, books for students.
end of 2026, Johnson Controls anticipates providing approximately $15 million in total and tools. Many of the colleges have also implemented
funding through this program. support and scaffolding measures to retain and A committee of Johnson Controls volunteers also
ensure student success, such as retention specialists, works with students on the soft skills needed to
By 2026 career coaches, mental health therapists, childcare, enhance their employability, providing coaching in
transportation and emergency funds for students who

$15 million
confidence and business etiquette, as well as training
are experiencing food, housing or clothing insecurities. sessions in business writing, digital literacy and other
Through this program, we strive to provide students functional skills.
funding through this program with the education, mentorship and support needed
to prepare them for a career path in the sustainable
building practices.

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Johnson Controls Foundation Investment in our neighborhood of focus

To ensure robust philanthropic Since 2015, the Johnson Controls Foundation Neighborhood
support for communities, Initiative has provided funding to non-profit organizations
Johnson Controls makes financial serving the challenged neighborhoods just minutes from
contributions to the Johnson the company’s North American headquarters.
Controls Foundation, a separate
This past September, we announced our continued commitment to these
entity from Johnson Controls neighborhoods by launching four Smart and Healthy Neighborhood grants.
with its own charter and board With this, four Milwaukee-based organizations will each receive $300,000
of directors. in funding over a two-year period, representing a $1.2 million investment
from the Johnson Controls Foundation. The four organizations selected –
The foundation supports smart, healthy and Greater Milwaukee Urban League, Silver Spring Neighborhood Center,
sustainable tomorrows through its philanthropic Boys & Girls Club of Greater Milwaukee and Milwaukee Parks Foundation
giving, including direct grants to non-profit – will offer transformative programming in the neighborhood, with grants
organizations, significant gifts to United Way helping to advance education, workforce development and health initiatives.
and the Milwaukee United Performing Arts
Fund, scholarships for employees’ children By channeling both funding and employee volunteer resources into these
and matching contributions for individual select non-profit organizations, Johnson Controls aims to create a more
employee and retiree gifts to eligible sustainable and prosperous future for our neighbors on Milwaukee’s
non-profit organizations. northwest side, aligning with our broader vision for a healthier, smarter
and more sustainable world. These grants also represent a change in
To learn more about the Johnson Controls approach for the Johnson Controls Foundation, moving from broad
Foundation, click here support of many non-profit organizations to more significant grants
being awarded to fewer organizations.

To learn more about this initiative, simply click here.

$1.2 million for four Milwaukee-based organizations

over a two-year period

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Expanded partnership with Habitat for Humanity Volunteer Network program continues to grow

In 2023, Johnson Controls announced significant commitments Our Volunteer Network was established in 2022 to facilitate transformative
to Habitat for Humanity International and Milwaukee Habitat experiences between our dedicated employee volunteers and local
for Humanity. community partners.

This included a $750,000 grant from the Johnson Controls Foundation to Habitat for This unique initiative, which serves as a cornerstone Our innovative approach empowers our employees
Humanity International to support its mission to build homes, communities and hope of our commitment to sustainability, has proven to to make a meaningful difference in their local
in partnership with families in need of decent and affordable housing. be a powerful driver of volunteerism. communities, guided by passionate executive
sponsors and community leaders in each country.
In addition, donations to Milwaukee Habitat for Humanity totaling approximately First launched in the US, Ireland and Mexico, the Together, they provide the essential tools and
$550,000 were also announced in 2023, including a $150,000 grant from the Johnson Volunteer Network has expanded over the last guidance that enable our volunteers to contribute
Controls Foundation and in-kind product donations from Johnson Controls. Product two years and now has a presence in 12 countries, positively to various causes.
donations included furnaces and air conditioners, fire detection and suppression including Argentina, Brazil, Chile, Colombia, Costa
devices, smart thermostats and security systems that will help support 90 new Rica, India, Canada, the United Kingdom and Belgium. Below are just two examples of the many
Habitat homes being built in partnership with local families. This expansion reflects our dedication to creating volunteer engagements led by our Volunteer
a global impact and fostering deeper connections Network last year:
Johnson Controls employees regularly volunteer alongside Habitat homeowners who between our employees and the communities
are building or improving their homes in numerous communities where Johnson we serve. • During Intern Week of Action in India, nearly 80
Controls has a presence. In line with this, more than 30 Johnson Controls employees, volunteers participated in the Rise Against Hunger
including CEO George Oliver and members of our Executive Committee, volunteered The program played a pivotal role in Johnson initiative, working over 154 hours and packaging
on site with Milwaukee Habitat for Humanity this past year. Controls achieving more than 61,000 volunteer more than 20,000 meals to help children and
hours in FY23, a 36 percent increase from the families thrive
previous year. Of these hours, 82 percent were
aligned with one of the 17 United Nations Sustainable • In Mexico, over 840 employees volunteered
Development Goals (SDGs), with approximately 2,500 hours in collaboration with 14
26 percent connected to Sustainable Cities and organizations, including Blooders, Mexican
Communities, 25 percent connected to Quality Red Cross, United Way Mexico, Teletón
Education and nine percent connected to Foundation, Robotix, and Specia Olympics,
Zero Hunger. to award $25,000 in volunteer rewards
to deserving organizations

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Zero Harm - health, safety and well-being These programs rely on a systems management Labor Organization’s Guidelines for Occupational
Health Management Systems (ILO-OSH 2001) and
approach to ensure compliance and continuous
202-2 | 203-2 | 413-1 | 413-2 improvement. As a result, we have several mechanisms ISO 45001 certification.
and processes in place to prevent non-compliance.
At the enterprise level, we have established common We employ dedicated health and safety professionals
Health and safety is critical to our success. We’re processes and standards that apply to all Johnson around the world, with each region maintaining an
committed to our Zero Harm vision to create a safe and Controls operations, supplemented by additional environmental health and safety (EHS) organization and
healthy work environment for our employees, our vendors processes and standards set by the respective management structure designed to support its health
global manufacturing or regional field businesses. and safety efforts. The enterprise environmental health
and contractors, our visitors and our communities.
For example, our Johnson Controls Manufacturing and safety Center of Excellence (COE) team drives the
System defines standards for a range of topics, company’s strategic health and safety initiatives in close
Our Zero Harm vision builds on the pillars of safety, environment and health
including environment, health, safety and other collaboration with regional health and safety leads.
and wellness, with multiple stakeholders from across the organization
matters, to ensure compliance. To add to this, we Our enterprise-wide standards and programs are
collaborating on improvement initiatives within these pillars.
identify and share best practices across the enterprise established with business health and safety leaders,
to continuously improve our compliance processes. while the enterprise EHS COE team also hosts
Our health and safety programs are designed to provide a safe working
several activities with the global EHS network
environment. These initiatives focus on how employees work at our
In the event of an emergency or crisis, we also each quarter, including global EHS townhall events,
manufacturing and customer locations in our installation and service
have a regularly updated Crisis Management Plan to training webinars on specific EHS topics and meetings
businesses, striving for a safe environment by eliminating unsafe
effectively address incidents and minimize impacts with business EHS teams.
conditions and acts.
on our employees, our communities, the environment
and other stakeholders. Our goal is to achieve and maintain world-class
safety performance in all our businesses and operations.
However, while compliance with health and safety Our health and safety management systems, programs
regulations is both important and required, our and policies apply to all staff present at our workplaces,
programs reach beyond regulatory compliance to whether they’re Johnson Controls employees or
influence our company’s culture through employee external contractors. Our sites hold onboarding and
engagement and leadership behavior. training programs for our employees and, when it
comes to contractors, we assess the contracting
Our health and safety programs are designed around company’s environmental health and safety programs
global standards. The way we operate and measure the and policies before awarding work to them. We also
performance and outcomes of our health and safety ensure individual staff carrying out tasks at Johnson
programs is consistent with widely accepted standards Controls workplaces receive details of our site-specific
and practices, meeting or exceeding the International environmental health and safety programs and policies.

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During fiscal year 2023, we launched initiatives to Some of the key standards and practices of our programs:
enhance the management of subcontractor activities,
with new global subcontractor EHS requirements being • Use of standard United States Occupational Safety and Health Administration
implemented in collaboration with other departments, (US-OSHA) recordkeeping rules to measure injury and illness rates globally.
such as procurement and operations, to improve the We believe that injury and illness rates based on consistent definitions provide
contractor assessment and approval process. an objective measure of performance and we are committed to improving
our performance as part of our Zero Harm vision
In 2023, we transformed the global EHS network from
a business unit-centric organization to a region- • Use of widely accepted standards for the most critical safety processes,
centric organization, ensuring that employees and including work at height, control of hazardous energy, driving safety
site EHS leads have better access to above-site EHS and contractor management, applying these standards at all our
We also promote safe driving behaviors at all our
expertise that is closer, speaks the same language and locations worldwide
operations globally through our distracted driving
understands the locally-applicable regulatory and
policy. We’ve banned the use of mobile phones
industry environmental health and safety requirements. • Measuring health and safety performance as a mix of leading and lagging
while driving a vehicle and introduced programs to
indicators, with increasing focus on leading indicators
recognize and eliminate other distractions while
driving, such as operating the navigation system,
• Use of established management system techniques to ensure injury rate
fatigue and interacting with others in the vehicle.
reductions are sustainable
In addition to this, safety culture and behavior-based
• Verification of the accuracy of self-reported safety and health data,
safety initiatives are being deployed within various
such as during third-party auditor assessments
parts of our business. As there are many ways to ensure
employees are engaged with safety, as a company, we
• Exploring innovative ways to further strengthen our safety culture, such as
monitor and support such initiatives. One safety policy
placing greater focus on leading indicators as a measure of safety
that applies to all employees, regardless of rank, region,
performance and outcomes
workplace or other external factors, is the right of every
employee to STOP WORK whenever they have
• Deploying the Johnson Controls Manufacturing System (JCMS) maturity
questions or doubts about their ability to safely
model and standards in order to implement the Johnson Controls Way of
execute a task assigned to them.
Manufacturing to attain world-class performance in our manufacturing
operations across the globe
To complement our traditional workplace health and
safety programs, we have also implemented health
and wellness programs at major locations.

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Total Well-Being Program Policies, standards and certifications Occupational health services
403-3
Our Total Well-Being Program promotes and We have a company-wide environmental health and safety
policy that is supported by our local, regional and site-specific Our staff have access to appropriate occupational health services
encourages a harmonious work-life balance employee health and safety policies and programs. Our health for the risks they may be exposed to at work. These services
and a positive, healthy lifestyle. and safety policies are developed in line with our Zero Harm may be internal, external or a mixture of both, based on a local
vision and are designed to protect employees and the assessment of in-house capabilities, occupational exposure types
The program was designed to align with our Zero Harm and environment, while adhering to local and regional regulatory and required skills and competencies to ensure all staff have
Power of Prevention strategies to protect our employees’ requirements and industry standards where necessary (e.g., access to expert occupational health support.
safety, health and wellness. European Union, US-OSHA, National Fire Protection Association,
country-specific standards etc.). These policies are reviewed Whether internal or external, the results of occupational health
annually to ensure optimal performance. exposure monitoring are available only to the worker and the
Physical required staff at the occupational health service. In cases of
For our health and safety management systems, we follow exposure above acceptable levels, managers and supervisors
Mental the principles of the internationally-leading ISO 45001 standard, may need to be involved to help resolve an exposure problem,
Social or operate in compliance with the standard. However, but are not granted access to an individual’s occupational health
we do not require external certifications for all operations. records. The use of information from occupational health records
Financial Given this, various locations maintain other key certifications, for any favorable or unfavorable treatment of workers would
including ISO 9001, ISO 14001 and ISO 50001. constitute a violation of our Code of Ethics and our privacy policy.

The pillars of the program ensure wellness is intrinsically

tied to the work we do, not only at an individual level, but Training
across the enterprise. With that in mind, health and wellness 403-5
programs seek to improve employee well-being both inside
and outside the workplace through the establishment of Training is a key component of our health and safety programs,
fitness centers, running and walking tracks, weight-loss conducted using a combination of classroom and computer
programs, vaccinations, smoking cessation programs learning. Our standards require new employees to receive the
and many other health improvement and disease appropriate level of health and safety training, relevant for
prevention programs. their tasks and work environment.

These well-being initiatives are facilitated by regional Health and safety training is provided during an employee’s
well-being councils in Asia, North America, Latin America, initial orientation or onboarding process, as well as on a more
Europe, the Middle East and Africa as they implement and continual basis through regular on- and off-site training, in
sustain our Total Well-Being Program at a regional and combination with toolbox talks ranging from specific
local level in line with our Zero Harm vision. certifications to general awareness and behavior training.

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Audits and inspections Reporting Health and safety committees

As part of the ISO 45001 standard, as well as other Each business is responsible for reporting their As part of our global health and safety
applicable health and safety standards, we require teams
at our locations to perform regular safety audits to ensure
health and safety activities and outcomes, standards, we maintain health and safety
proper safety policies, program procedures, analysis and with reports generated monthly and circulated committees at local, regional, business
training are in place. Following this, audit data is used to to the senior leadership team. and corporate levels.
create improvement and corrective action plans.
Health and safety is a standard topic at monthly operational At the local level, health and safety committees take many forms
In addition, we engage an independent third-party conformity reviews. As a result, our corporate environmental health and depending on the business, but serve the same principal function:
assessment and certification vendor to audit selected safety department also generates a monthly global Zero Harm to facilitate and maintain regular communication regarding health
operations for adherence to our global health and safety Report, which contains information related to key performance and safety issues and information across all levels of the
standards. Along with management systems certifications indicators, including total recordable incident rate (TRIR), organization. This information includes, but is not limited to,
for ISO 9001, ISO 14001 and ISO 45001, the third-party significant incident frequency (SIF), motor vehicle injury rate health and safety standards, processes and procedures, roles and
auditor also performs specialized audits for location-specific (MVIR), near miss/unsafe act/unsafe condition closure rate, responsibilities, prevention measures, near misses and incident
health and safety issues (e.g., ergonomics, industrial hygiene, Zero Harm coaching moments and on-time audit finding closure. reviews, key performance indicator trends, reporting and
machine guarding, OSHA recordkeeping, NFPA 70e live This report is also distributed to the executive leadership team, investigation obligations, inspections by relevant authorities
electrical, confined space, etc.). The on-time completion which includes our CEO and his direct reports, as well as our and both internal and external audit results.
of any findings identified during these audits is also an global health and safety leadership team.
enterprise-leading indicator. Health and safety meetings are held regularly, with topics
One example of how these metrics guide our actions came in tailored to specific location needs depending on the type and
relation to an electrocution fatality that occurred in China in July scope of work. In the manufacturing organization, health and
2023. Following this, we took global action to reinforce the safety committees generally operate at the location level due
application of the Control of Hazardous Energy program, while to the size of the facilities and concentration of employees,
also creating a new long-term strategy to focus health and safety while installation and service business committees typically
actions and initiatives on the Critical 6 health and safety operate at the branch or regional levels as a result of a
programs (work at height, control of hazardous energy, electrical dispersed workforce.
safety, confined space entry, forklift/PIV operations and overhead
crane operations) to continue our Zero Harm journey to improve
our health and safety performance.

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Key performance indicators Technology and software

We use a mixture of leading and lagging We use an enterprise environmental health

indicators to assess the health and safety and safety software system called the
performance of our operations. Environmental Health and Safety Information
System (EHSIS) to support our health and
Lagging indicators include the US OSHA total recordable
incident rate (TRIR) based on the number of incidents per
safety programs worldwide.
100 employees (or per 200,000 work hours), significant
This system allows users to input, track and manage
incident frequency (SIF) based on the number of significant
work-related injuries and illnesses, as well as near misses
incidents per 1,000,000 work hours and motor vehicle
and unsafe acts or conditions, while also enabling users to
injury rate (MVIR) based on the number of motor vehicle-
create safety audits, execute workplace inspections, perform
related injuries per 1,000,000 miles.
leadership safety walks, measure compliance with government
regulations, health and safety training requirements and internal
Though we continue to measure and report on lagging
procedures, create standard reports, manage risk assessments
indicators, we view leading indicators as more relevant
and track waste and energy metrics.
predictors of health and safety performance and outcomes.

The EHSIS platform is used by our health and safety

Leading indicators include, but aren’t limited to, potential
professionals, as well as many other stakeholders, including
significant incident closed, corrective actions completed,
technicians, supervisors and team leaders, to address their
safety discussions held, motor vehicle calls reported, safety
health and safety responsibilities.
observations noted, safety-focused improvement events
completed, job safety analysis completed, leadership safety
walks and self-audits completed.

Leading indicators are defined, tracked and measured by

each business unit according to relevant risks and operation
types. However, leading indicators near miss/unsafe act/
unsafe condition closure, compliance audit on-time finding
closure and Zero Harm coaching moments are measured
and tracked at an enterprise level.

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Global
sustainability
Our passion is to build smarter,
healthier and more sustainable
tomorrows, for our customers,
our communities and our planet.
 Sustainable products Greenhouse gas Social impact and
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28th Conference of the Parties to the United Nations

Framework Convention on Climate Change (COP28)

When it comes to fighting climate change, Johnson Controls recognizes the importance of engaging
with world leaders both individually and via leading organizations. As such, several members of our
leadership team, led by our Chairman and Chief Executive Officer George Oliver, took an active role
in the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change
(COP28). This builds on the company’s long history of engagement and Mr. Oliver’s personal leadership
at these conventions during his tenure as CEO of Johnson Controls. His message was clear:

Only bold and

immediate action
will mitigate the
Climate policy and engagement leadership climate crisis.
2-23 | 2-29 | 3-1 | 203-2

In 2023, we continued to elevate Johnson Controls as a leading voice

on climate change and building decarbonization policy through our
strategic engagements with global policy makers, industry partners
and influential stakeholders in the United States, European Union,
Latin America and Asia.

Through these engagements, Johnson Controls is demonstrating its important

role as a thought leader on critical sustainability issues globally.

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Cracking the Code – Decarbonizing the COP28 also provided ample opportunity to demonstrate the key
Built Environment cross-collaborative engagements Johnson Controls is driving:

• Johnson Controls is a founding member of the Corporate Coalition for Innovation and Technology
To kick off COP28, Johnson Controls hosted an event at the toward Net Zero (CCITNZ), a cross-sector business alliance dedicated to helping countries meet
decarbonization and climate change goals through innovation and technology. Together with US
world-renowned Museum of the Future, with a panel titled
Special Climate Envoy John Kerry, Johnson Controls urged companies and all sectors of society
Cracking the Code – Decarbonizing the Built Environment. to put technology to work now to tackle climate change. As a founding member of CCITNZ, we
helped inaugurate the effort together with lead founding member GE on stage at the US Pavilion
This event brought together the key actors required to drive at COP27. At COP28, Johnson Controls was featured in a CCITNZ-led exhibit titled “U.S. Innovation:
Pathways toward Net Zero” in the US Center. This interactive, multimedia exhibit demonstrated
society’s net zero goals: corporate leadership, building owners,
how Johnson Controls technology and public-private partnerships are contributing toward
technology providers, non-governmental organizations and global climate goals
government officials. The event featured four innovation
showcases that brought to life the technologies needed • The United Nations Environment Program also plays an important role in the decarbonization
of the built environment. At COP28, Katie McGinty, our Vice President and Chief Sustainability
to decarbonize our society for over 200 leaders and
and External Affairs Officer, released a statement in support of the United Nations Buildings
delegates in attendance. Breakthrough Initiative:

“We applaud the United Nations Environment Program and the 27

signatory countries of the Buildings Breakthrough announced this week
at COP28. Decarbonization of the buildings sector is an imperative for
meeting global climate targets. The technology exists to make near-zero
emissions and climate-resilient buildings the new normal by 2030.
Working together, leaders across civil society and the private sector can
rapidly deploy these climate solutions affordably, accelerating adoption
of these technologies at a time when they are most needed, and can
do the most good. At Johnson Controls, we’re committed to helping
drive leadership on net zero building technologies into the future
and look forward to working with nations around the world on this
breakthrough endeavor.”

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The Sustainable Markets Initiative’s Business Roundtable Energy and Environment Committee
Sustainable Buildings Task Force
Our CEO George Oliver served as Chair of the Business Roundtable’s Energy
Johnson Controls is committed to the work of the Sustainable and Environment Committee.
Markets Initiative (SMI), which was founded by His Majesty
Our CEO George Oliver served as Chair of the Business In addition to this, under Mr. Oliver’s leadership,
King Charles at the World Economic Forum annual meeting Roundtable’s Energy and Environment Committee. the group also published a comprehensive study
in Davos in 2021. In 2022, through his chairmanship, Mr. Oliver guided on building supply chain resilience for technologies
the Business Roundtable to support SEC action on essential to the clean energy transition.
George Oliver serves as a member of the SMI board of directors and built the climate change and to affirm the importance of
Sustainable Buildings Task Force (SBTF) to address the 40 percent of carbon congressional action on clean energy and efficiency The recommendations in this report were a central
emissions stemming from buildings. Mr. Oliver chairs this task force, which brings incentives. Building on accomplishments in 2022, he theme for activities jointly organized by the Business
together global CEOs from throughout the buildings industry to accelerate the drove the organization’s efforts on permitting reform, Roundtable and the European Round Table for
delivery of net zero buildings by decarbonizing the heating and cooling of buildings, which will allow for faster construction of renewable Industry at COP28, which featured the largest-ever
addressing carbon emissions in the building value chain and forging partnerships and energy projects and grid modernization. presence from the global business community.
incentives.

During COP27, the Task Force published a white paper outlining best practices for
cutting emissions from building operations through technology adoption, smart
policies and innovative partnerships. Building on this effort, the Task Force is urging
all SMI member companies to make a pledge to drive their buildings to net zero.

Moreover in 2023, under the leadership of Johnson Controls, the Sustainable

Buildings Task Force hosted a series of building tours in New York, London and
Dubai that brought building decarbonization technologies to life. At COP28, a
roundtable discussion also highlighted innovations in the built environment aimed
at accelerating our journey to net zero, while the SBTF released a whitepaper
outlining strategies for reducing embodied carbon in building systems, an important
step towards achieving our society’s net zero goals.

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Thought leadership - 2023 Forrester Among decision-makers on sustainability initiatives Respondents reported
specifically, a subset of 1,500 respondents, two thirds
Consulting study reported they are fully on track to meet their carbon that smart buildings are
reduction goals, while one third realized the need to important in helping their
accelerate their efforts to meet 2030 net zero goals.
In 2023, Johnson Controls commissioned a study in Respondents reported that smart buildings are organizations accelerate
collaboration with Forrester Consulting that surveyed important in helping their organizations accelerate
nearly 3,500 respondents representing 25 countries and sustainability initiatives (69 percent) and that adding
18 industries. This landmark survey showed both widespread or upgrading building automation (56 percent)
and digital technologies to optimize energy use
acceptance that sustainability is a business priority and a (42 percent) are among the most impactful
Sustainability
firm recognition that partners are essential to realizing sustainability investment areas. initiatives
2030 sustainability commitments.
Currently, technologies exist that can digitalize
building systems, multiply energy, emissions and
cost savings, and even create net energy-positive
solutions. Some 10 percent of respondents have
already fully integrated their building systems and
adding or upgrading
equipment to realize these benefits. building automation
The vast majority of leaders seek partners who
can provide a digital platform across sites and
use cases (74 percent) that’s easy to use for cross-
departmental teams (67 percent) and is integrated
into all building systems (70 percent). These
Digital technologies
partnerships solve two key problems for these optimize energy use
leaders: 73 percent of sustainability leaders say
their organizations lack the technical expertise to
optimize building systems from insights collected,
while 40 percent lack the internal skills to
measure their environmental impact.

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Other key findings include: Political contributions

415-1
• Sustainability is increasingly a core consideration across business functions.
When comparing findings from security, sustainability and building environment
systems decision-makers, all were focused on improving efficiency in operations
We encourage our employees to be engaged in
and doing so sustainably their communities in a variety of ways

• Customer-required reporting, public reporting and supply chain compliance In addition to volunteering and charitable independent political expenditures in support
reporting have significantly increased over the past two years since Forrester activities, we promote participation in the public of or in opposition to any candidates, nor were
Consulting first conducted this study in 2021. Now, reporting is among policy and electoral process in the United States, corporate contributions made to any state or
respondents’ top challenges. In fact, 53 percent reported that the ability including encouraging our employees to vote. local candidates for office. Additionally, we do
to only measure and report on carbon emissions once per year or quarter not provide financial or in-kind support related
is limiting incremental progress Along these same lines, eligible employees to political activities in other countries.
may also make a voluntary contribution to the
• Roughly one third of respondents say they expect AI will have a significant Johnson Controls Political Action Committee The Johnson Controls Political Action
impact on improving sustainability in company-owned spaces by providing (PAC). Our corporate government affairs Committee list of recipients can be found here.
them with actionable recommendations to prevent downtime and optimize activities, including membership of various
efficiencies before losses occur trade associations and organizations, are More information on the Johnson Controls
designed to educate policymakers on key Political Action Committee’s expenditures
• One third of leaders note their organization would be able to keep their issues impacting the company and to help is available at www.fec.gov
sustainability goals on track if faced with a minor budget cut, while two advance our business objectives.
thirds would need help maintaining the resiliency of their sustainability
strategies. To account for factors outside their control, organizations need In 2023, we made corporate political
strategic partners and technology solution providers to identify opportunities contributions to several committees.
for short- and mid-term savings such as energy efficiency solutions and The complete list of our corporate political
water and waste reduction contributions and federal lobbying expenses
can be found here. We did not make any
Download the full study results here:
The Race to Zero Carbon Requires Smart Buildings

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Issue advocacy In the United States, we continued our support of sustainability policies In Europe, Johnson Controls holds key leadership positions in our
sector-specific trade associations and plays a vital role in driving
at the federal level through engagements with administration, agency
and elected officials on issues such as the implementation of the building renovation, advancing net zero buildings, decarbonizing the
Johnson Controls proactively engages with Inflation Reduction Act (IRA), the phase-down of HFCs, increased use heating and cooling of buildings and advancing district heating and
policymakers at all levels of government to of energy savings performance contracts (ESPCs) and the electrification cooling. We have also accelerated efforts to advance net zero
share our perspective on issues related to of the federal government building portfolio. Our continued work on buildings and to emphasize the use of heat pumps for heating and
energy retrofits at the Ronald Reagan Building, supported in part by cooling in the EU Energy Performance of Buildings Directive.
sustainability and decarbonization.
IRA funds, has highlighted Johnson Controls as a key leader in Similarly, our efforts have seen the Energy Efficiency Directive
building decarbonization. give a bigger role to municipalities in decarbonizing district
We publicly support policies that have heating and cooling.
an impact on reducing climate change, Additionally, Johnson Controls worked with the Biden Administration to
such as the Inflation Reduction Act in underscore the vital role heat pumps have in driving energy efficiency In Latin America, Johnson Controls has actively participated in local
and electrification. In the aftermath of Russia’s invasion of Ukraine, it’s chapters of the World Green Building Council to develop national
the United States, the European Green
a national security imperative that the US frees itself from dependency decarbonization roadmaps in both Chile and Colombia, as well as
Deal in the European Union and the on Russia, and heat pumps are an important technology in meeting that developing the Green Taxonomy in Colombia and, more recently,
Green Growth Initiatives in India. goal. To that end, Johnson Controls successfully applied for funding Mexico. We’re proud that, with these strong leadership efforts,
under the Department of Energy’s (DOE) domestic heat pump Johnson Control’s own Ricardo Bussey, Director of Government
manufacturing grant program to increase heat pump production Relations in LATAM, has been asked to become President of the
across San Antonio, Waynesboro and Wichita. Mexico Green Buildings Council and is leading work to get
government and companies to commit to net zero buildings.
We’re helping building owners in states, counties and cities across
the United States to meet recent Building Performance Standards In India, Johnson Controls works closely with organizations such
(BPS) laws requiring substantial reductions in energy use and carbon as the Indian Green Building Council (IGBC), the Energy Resources
emissions. Jurisdictions that have passed BPS laws include Boston, Institute and the World Resources Institute (WRI) to promote energy
Denver, Montgomery County, Maryland, New York City, Oregon, efficiency and digitalization in buildings. We also contribute towards
Washington State and Washington D.C., with many more expected the development and implementation of the Energy Conservation
to pass laws in the coming years. Johnson Controls partners with and Sustainability Building Code (ESCBC). With this in mind, we’re
customers to meet BPS requirements, while turning properties into honored to have our Chief Sustainability Officer on the board of the
energy-efficient buildings that deliver long-term savings. We’re World Sustainable Building Summit hosted by TERI in New Delhi,
committed to the success of these efforts and have moved to support India. Johnson Controls has chaired panels at this prestigious event
our partners in every way, including stepping up to cover all up-front in the past and is proud to support rural young women in attending
capital costs and guaranteeing cuts to not only carbon, but also this annual summit, which attracts the Prime Minister of India among
operating costs as part of our innovative Decarbonization as a other global leaders.
Service offerings.

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Drive
Johnson Controls Nature
conservation across
sustainability memberships nature domains:
We’re committed to the assessment
2-28
of our nature-related impacts. Reduce GHG emissions,
pollutants, water withdrawals,
Our public policy engagement is often We continuously increase our understanding of Catalyze positive waste and biological
conducted in conjunction with the nature-related risks and opportunities to mitigate nature contributions disruption
our impact on nature, as well as nature’s impact on
efforts of allied non-profit advocacy through customer
our business, through management of key areas
groups, businesses, and trade and and transparent disclosure. engagement:
issue organizations of which the Deliver products and services
company is a member. Our focus on nature includes upstream, direct
that improve air quality,
and downstream impacts and opportunities from:
reduce emissions and Engage
Our membership or support of these minimize the impact
Climate change:
on nature
suppliers across
organizations does not mean we Greenhouse gas emissions our value chain:
support every position they may
Track progress and alignment
take and we reserve the right to Pollution: with our nature
speak out, both publicly and within Land, air and soil commitments
the organization, when we disagree. and plans

Waste:
The full list of our memberships Hazardous and non-hazardous
can be found here. We’re now looking at how we can accelerate action
through workstreams dedicated to defining our goals
Water:
Conservation and wastewater management and aspirations with respect to water and waste for
2025 and beyond. We have both board oversight and
third-party limited assurance of our water and waste
Biodiversity and ecosystem use change:
performance, underscoring our commitment in this
Terrestrial and aquatic
rapidly developing space.

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Taskforce on Nature-Related
Financial Disclosure (TNFD)
and Science-Based Targets
Network (SBTN)

We’re engaged with the Taskforce on

Nature-Related Financial Disclosure
(TNFD), the nature counterpart to the
Taskforce on Climate-Related Financial
Disclosure (TCFD), and are proud to have
helped guide the built environment pilot
program as a partner and member.

In addition, we’re also engaged with the

Science-Based Targets Network (SBTN) Locate
as we continue to create targets and Johnson Controls performs its location assessment across facilities in the following countries:

strategies across nature-based topics. Location of Operations

Argentina Costa Rica Japan Poland United Arab Emirates
Australia Czech Republic Kazakhstan Portugal United Kingdom
In line with this, we actively reduce our impact on nature Austria Denmark Kuwait Qatar United States of America
through several initiatives. We use the Locate, Evaluate, Bahrain Finland Luxembourg Romania Uruguay
Assess and Prepare (LEAP) framework to align our Belgium France Malaysia Singapore Uzbekistan
Brazil Germany Mexico Slovakia Vietnam
strategy and look for new ways to reduce our impact on
Canada Hungary Netherlands Spain
nature, while maximizing its beneficial impacts. To that
Chile India New Zealand Sweden
end, we have identified dependencies and impacts, both
China Indonesia Norway Switzerland
material and immaterial, that interface with nature and China - Hong Kong (SAR) Ireland Oman South Africa
are aligned with the five categories of nature. China - Macau (SAR) Isle of Man Panama Thailand
Chinese Taiwan Israel Peru Turkey
Colombia Italy Philippines Ukraine

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Evaluate

Relevant environmental assets, ecosystem TNFD-Aligned Dependency Matrix

services and impact drivers are mapped to
business activities and/or assessment locations. TNFD Identified Sector Dependence Johnson Controls Action

Johnson Controls’ product value chain interfaces with nature in Manufacturing Inputs Metals and mining inputs See Waste and Circular Economy
several ways. Inputs to our product manufacturing include metals, Ground water See Water
chemicals (primarily heat transfer fluids such as refrigerants), Surface water See Water
water and energy. In operation, our products improve air quality, Heat transfer fluids See Climate Change
discharge water and displace high GHG emission equipment.
Manufacturing Processes Energy supply See Climate Change
Water flow maintenance See Water
Dilution by atmosphere and ecosystems See Pollution and Water

Digital Solutions Dependencies Metals and mining inputs See Waste and Circular Economy
Energy supply See Climate Change

Assess us with a common framework and terminology to ensure in place to oversee and advise on our sustainability risks and
consistency in the identification, reporting and management opportunities, including the board’s Governance and
Johnson Controls prides itself on early of key risks. It also informs the strategic planning process and Sustainability Committee, the Executive Committee and the
recognition of the connections between includes formal processes to identify and document the key ESG Leadership Committee. These committees review tracked
risks to Johnson Controls as perceived by a variety of data, including water withdrawals globally, as well as data
environmental sustainability and enterprise stakeholders within the company. collected centrally for our manufacturing locations, three
risk management (ERM). HQ locations and significant R&D facilities.
The Governance and Sustainability Committee of the Board of
Climate changes and other environmental aspects have been Directors oversees the ERM process, while a Risk Committee In fiscal year 2024, we’ll be performing a double materiality
embedded in our ERM and risk mitigation actions. As a global assesses risks throughout the year and escalates any new risks assessment, bringing in the five nature categories in alignment
multi-industrial company, we face a wide range of risks (see to the Executive Committee. In addition, we also have key teams with the TNFD.
enterprise risk management). However, our ERM process provides

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Prepare Our nature-related goals ensure we remain on track to We report goals to the board and assess each target quarterly through our
ESG governance program (see page Governance). As we meet specific
contribute positively to the natural environment.
targets, we review opportunities to increase both ambition and scope.

Nature LEAP assessment

Dependency/Impact Locate Evaluate Assess Prepare

Climate Change Upstream: Material procurement and Upstream: GHG emissions evaluation Upstream: Risk assessment of suppliers Upstream: Assessment of 50 percent of
associated emissions from of suppliers from EcoVadis or other supplier supplier spend by 2026 and 80 percent
transportation of goods evaluation by 2028 through EcoVadis or other
Direct: GHG emissions evaluation supplier assessment tool
Direct: Scope 1 and 2 emissions of facilities Direct: Risk and opportunity assessment
from facilities analysis of facilities Direct: Reduce scope 1 and 2 GHG
Downstream: GHG emissions emissions intensity and energy
Downstream: Emissions from use evaluation of use of sold products Downstream: Risk and opportunity intensity by 25 percent by 2025,
of sold products assessment analysis of use of reduce absolute emissions by 55
sold products percent by 2030 and achieve net
zero emissions by 2040

Downstream: Reduce scope 3 emissions

from use of sold products by 16 percent
by 2030

Pollution Upstream: Material procurement and Upstream: Evaluation of supplier Upstream: Risk assessment of suppliers Upstream: Assessment of 50 percent
associated emissions from transportation non-GHG air pollution, soil pollution from EcoVadis evaluation or other sup- of supplier spend by 2026 and 80 percent
of goods and disturbances plier evaluation tool by 2028 through EcoVadis or other
supplier assessment tool
Direct: Criteria air pollutants Direct: Evaluation of facility non-GHG Direct: Risk and opportunity assessment
from facilities air pollution, soil pollution and analysis of facilities Direct: Design for sustainability
disturbances
Downstream: Indoor air quality (IAQ) Downstream: Risk and opportunity Direct: Design for sustainability
improvements from use of sold products Downstream: Evaluation of Indoor assessment analysis of use of
Air Quality (IAQ) improvements from sold products
use of sold products

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Nature LEAP assessment

Dependency/Impact Locate Evaluate Assess Prepare

Waste Upstream: Supplier assessments Upstream: Evaluation of supplier Upstream: Risk assessment of suppliers Upstream: Assessment of 50 percent of
through EcoVadis or other supplier waste management from EcoVadis evaluation or other supplier spend by 2026 and 80 percent by
assessment tool supplier assessment tool 2028 through EcoVadis or other supplier
Direct: Evaluation of facility assessment tool
Direct: Hazardous and non-hazardous waste management Direct: Risk and opportunity assessment
waste generated at facilities analysis of facilities Direct: 25 percent of manufacturing
Downstream: Evaluation of product locations landfill-free by 2025
Downstream: Product end-of-life packaging and end-of-life management Downstream: Risk and opportunity
management assessment analysis of use of Direct: Design for sustainability
sold products

Water Upstream: Supplier assessments through Upstream: Evaluate supplier water Upstream: Risk assessment of suppliers Upstream: Assessment of 50 percent of
EcoVadis or other supplier evaluation practices through EcoVadis or other from EcoVadis evaluation or other supplier spend by 2026 and 80 percent by
tool supplier assessment tool supplier assessment tool 2028 through EcoVadis or other supplier
evaluation tool
Direct: Water withdrawals and Direct: Evaluate progress towards Direct: Risk and opportunity
discharges at facilities, with water-stressed locations goals related assessment analysis of facilities Direct: Reduce water withdrawals by
additional focus on risk in to facility withdrawals and discharges 10 percent at water-stressed locations
water-stressed locations (WSLs) Downstream: Risk and opportunity by 2025
Downstream: Evaluate customer water assessment analysis of use of
Downstream: Customer water savings savings from use of sold products sold products Downstream: Track and account
from use of sold products for customer water savings

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Nature LEAP assessment

Dependency/Impact Locate Evaluate Assess Prepare

Biodiversity and Upstream: Supplier assessments through Upstream: Evaluate supplier biological Upstream: Risk assessment of suppliers Upstream: Assessment of 50 percent
ecosystem use EcoVadis or other supplier alterations and land use through from EcoVadis evaluation or other of supplier spend by 2026 and 80 percent
change evaluation tool EcoVadis or other supplier evaluation tool by 2028 through EcoVadis or other
evaluation tool supplier evaluation tool
Direct: Facility siting and water Direct: Risk and opportunity assessment
table proximity Direct: Evaluate new facility siting analysis of facilities Direct: Demonstrate commitment to
procedures and water table proximity the Johnson Controls facility siting policy

Climate change Pollution We reduced our SOx emissions

Absolute by 32% and NOx emissions by 25%.
Our history of climate change mitigation We’re happy to share our
and adaptation remains unparalleled. progress in significantly reducing
our SOx and NOx emissions We reduced our SOx emissions
In line with this, our nature-related goals further against our 2017 baseline. Intensity intensity by 35% and NOx
strengthen our fight against current and future climate
change. See Greenhouse Gas Emissions for details on emissions intensity by 28%.
how we reduce our upstream, direct and downstream
GHG emissions. We achieved these reductions while adding the emissions from
our acquisition of 12 new manufacturing facilities to our current
metrics and not our baseline year.

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Air quality and air emissions The COVID-19 pandemic forced society, including Our vision for the future includes a
building owners and occupants, to think differently built environment in which enhanced
IAQ is standard operating procedure
Johnson Controls delivers nature- about the relationship between IAQ and health.
from construction through to service,
positive contributions to the built Johnson Controls experts are at the leading edge of research, development, retrofit and replacement, and in
environment by improving air quality education and advocacy when it comes to this relationship. We’re committed which the links between IAQ and
and monitoring air quality changes. to leveraging our expertise to make a positive, lasting impact on the health of decarbonization are realized.
indoor environments, and we’re following through on that commitment by
taking action in our own buildings, as well as in our customers’ buildings. Internally, we have reduced our NOx and
According to the EPA, the average person spends
about 90 percent of their time indoors, and indoor SOx emissions significantly from our own
environments can be up to five times more polluted These actions have included: operations. As against our baseline of 2017,
than outdoor environments. • Certifying our global headquarters buildings in Glendale, Wisconsin, we reduced our SOx emissions by 32
and Shanghai, China, to the WELL Health Safety Rating from the percent and NOx emissions by 25 percent.
As a result, we view optimal indoor air quality (IAQ) International WELL Building Institute (IWBI) We achieved these reductions even though,
as a critical priority, particularly considering that starting with our 2022 metrics, we added the
the average person takes approximately 20,000 • Earning IWBI’s WELL Enterprise Provider (EP) designation to better emissions from our acquisition of Silent Aire
breaths per day, according to the American Lung plus other new manufacturing facilities —
assist our customers on their healthy building journeys
Association. By delivering optimal IAQ, we can
adding the emissions for 12 new
ensure that building occupants are healthy,
productive and engaged. • Helping develop and advocate for enhanced standards and codes manufacturing facilities to our current
that govern good IAQ, including the new ASHRAE Standard 241 metrics and not our baseline year.
Control of Infectious Aerosols, a groundbreaking standard released
in July 2023 to help curb the spread of infectious diseases in buildings According to Johnson Controls CEO
George Oliver, “Organizations can cut costs,
• Implementing our IAQ solutions, including our portfolio of IAQ improve safety, raise productivity and
services for existing buildings and our IAQ monitoring, filtration achieve sustainability goals, all while
and UV-C disinfection products, for dozens of customers globally building healthy environments that serve
as they invest in unlocking valuable outcomes for their businesses our populations for years to come”.
and their stakeholders
Learn more about Johnson Controls
• Research that has led to peer-reviewed articles and white papers indoor air quality solutions.
that are accelerating the base of knowledge on IAQ, including the
financial justifications for IAQ investments and the key links between
IAQ and decarbonization

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Waste Circular economy

3-3 | 306-1 | 306-2
Our focus on making positive contributions to the natural
environment drives us to eliminate waste in our operations. We work to consistently implement
circular economy practices, both
We assess our suppliers annually through EcoVadis or other supplier evaluation
platforms to ensure that our upstream partners remain in lockstep with our waste internally and in our offerings
priorities and we’re pleased to be on the cutting edge of sourcing low and ultra-low to customers.
carbon steel by ensuring that the recycling and reuse of scrap metals and in building
our equipment with secondary materials. To drive and engage circular thinking, we include
sustainability and circularity principles throughout
When it comes to direct operations, our goal is that 25 percent of our manufacturing our stage gate review process for innovation and
locations will be landfill-free by 2025, while at the downstream level, we ensure our new product development.
products and packaging remain sustainable, readily recyclable and designed for the
circular economy.

Key components to our circular economy strategy:

1 Design products and packaging for material reduction,

select sustainable materials and reuse and recycle

2 Reduce waste within our operations

3 Eliminate single-use plastic in packaging

landfill-free
by 2025

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Reduction of waste The primary contributor to our waste To be recognized as zero landfill, a site must demonstrate to the
senior environmental health and safety (EHS) leadership team that
within our operations is global manufacturing.
its generated waste is either recycled, reused or converted to
energy. Each landfill-free location started the journey to zero
In 2023, our overall landfill diversion rate was 89 percent,
landfill several years before they completed the recognition process
Metric: 25 percent of with every location encouraged to increase the reuse and
recycling of materials. While this landfill diversion rate excludes
and a large part of their success can be attributed to the focus and
manufacturing locations landfill and incineration with no energy recovery, it includes
personal commitment of the employees at each site. Their support
has helped to ensure we have a positive impact on the world in
landfill-free in 2025 documented reuse, recycling, composting and incineration
with energy recovery.
which we live by reducing the amount of waste being placed in
the ground.
In addition to this, we also engage in a range of programs and
The facilities that have achieved the impressive milestone of zero
activities to encourage zero landfill, as well as reducing, reusing,
landfill so far are:
recycling and composting. Some of our current activities include:
1. FSP Frome, UK (July 2015) 17. IR Holme, Denmark (August 2018)
• Running a corporate-level workgroup specifically focused 2. FSP Luneburg, Germany 18. JCH Shimizu Works, Japan
on reducing waste and helping plants achieve their (September 2015) (May 2019)
3. BMS Rajecko, Czech Republic 19. JCH Taoyuan Works, Taiwan
zero-landfill goals (September 2015) (July 2020)
4. BMS Sungnam, Korea 20. FSP Lubbock, Texas (August 2020)
• Establishing and tracking progress of our zero-landfill (February 2016) 21. IREF Finland, Finland
5. Distribution Echt, Netherlands (November 2020)
We have achieved this initiatives, including having our waste metrics audited
and assured through third-party limited assurance
(March 2016) 22. JCH Guangzhou, China (April 2021)
6. Distribution Enschede, Netherlands 23. JCH Guangzhou Works, China
metric two years early: (March 2016) (April 2021)
7. FSP Port Arthur, Texas (April 2016) 24. APAC Singapore, Singapore
• Continuously finding ways to follow the waste hierarchy 8. FSP Stockport, UK (September 2016) (July 2021)
In 2023, 23 manufacturing locations, representing 25 throughout the life cycle of our business by eliminating 9. FSP Lammhult, Sweden 25. EMEALA Sunbury-On-Thames,
percent of our total manufacturing locations, had a unnecessary materials, reusing and recycling, and using (September 2016) UK (October 2021)
100 percent diversion rate and were recognized as 10. BMS Toronto, Canada (March 2017) 26. Distribution Singapore, Singapore
compostable materials in the cafeteria
zero landfill. As a result, we have already met our 11. FSP Neuruppin, Germany (April 2022)
2025 goal of having 25 percent of our manufacturing (January 2018) 27. JCH Kadi, India (April 2022)
• Promoting and encouraging recycling among our 12. Distribution Letchworth, UK 28. JCH Tochigi, Japan (May 2022)
locations landfill-free. To add to this, a further eight (May 2018) 29. EMEALA Gateshead, UK (July 2022)
sites have since taken on the ambitious objective of customers and supporting take-back programs and 13. BMS Corropoli, Italy (June 2018) 30. JCH Sao Jose, Brazil
becoming landfill-free, aiming to take our total to retrofit options 14. JCH Barcelona, Spain (June 2018) (December 2022)
31 landfill-free locations throughout the company. 15. IR Nantes, France (July 2018) 31. AHU East York, Pennsylvania
16. SP Great Yarmouth, UK (September 2023)
(August 2018)

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Sustainable packaging design Below are three examples that demonstrate our commitment to
reducing our overall packaging material use, while eliminating the
At Johnson Controls, we aspire to sustainably package use of single-use plastics.
our products without compromising on quality.
Example 1 Single use plastic design Paper-based design
To this end, we’re committed to increasing the recycled content in all
paper-based packaging used, while also reducing our overall packaging We replaced the single-use expanded polystyrene
material use, including the elimination of single-use plastics in the (EPS) plastic insert used to cushion our product
manufacturing and shipping of our products. with a more sustainable, paper-based honeycomb
insert, eliminating 18,186 pounds of single-use
How we achieve our sustainable packaging objectives: plastic annually.

Remove Eliminate or reduce non-essential

Example 2 Wood crate Returnable container
packaging materials and components
We implemented returnable containers, replacing the
single-use wood crates used to ship products between
Replace Replace unsustainable packaging with our factories. This project reduced the number of
more sustainable alternatives trailers used to ship products by an estimated 400
trailers per year, leading to a 30MT reduction in CO2
emissions, while eliminating an estimated 41,000
Reuse Implement returnable packaging solutions pounds of wood material from landfill disposal.
or repurpose single-use packaging

Example 3 Stretch film reduction Optimized stretch wrap pattern

Recycle Prioritize packaging material that is biodegradable
We reduced the amount of single-use plastic needed
or recyclable by our end users
to stretch-wrap and ship products to our customers
by optimizing the stretch-film material and wrap pattern.
This project reduced the amount of single-use
Reclaim Source packaging materials that contain
reclaimed, recycled or reused content plastic used annually by an estimated 55 percent,
or 14,163 pounds. Old material New material Before After
weight = 1.32 lbs. weight = 0.59 lbs.

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Water
Employee engagement to Conservation and wastewater management
reduce single-use plastics
3-3 | 303
Our site in Nottingham, UK, sends a
single-use plastics survey to employees In 2021, we updated our water-stressed locations in alignment with
annually, in addition to communications Metric: Reduce water use by 10 percent WRI Aqueduct 3.0. As a result, in 2023, we determined that we had
on reducing/eliminating single-use at water-stressed locations in 2025 22 manufacturing and R&D facilities in water-stressed locations,
plastic, complete with suggestions driving us to continue our focused effort on water reduction.
for alternatives. This has led to the from our 2017 baseline.
purchasing of better stationary items, With that in mind, our manufacturing facility in Taoyuan
including envelopes with no plastic implemented an innovative process for water reuse and recycling.
windows and recycled paper, along The team installed a water storage tank so that water that
with plastic plates and cutlery with previously ran through the typical rainwater downpipe and fully
reusable crockery for kitchens and discharged from the facility can now be fully recycled and used for
conference rooms. toilets and for watering flowers. Similar learnings have since been
applied to facilities in China, India and Mexico to drive durable
water conservation improvements.

Spotlight: Kadi, India

In Kadi, India, we have a water recycling and reuse project that is

expected to deliver a 25 percent water withdrawal saving compared
We have achieved this to our 2017 baseline in a water-stressed location. Through the
metric two years early: Reuse of (excess) Treated Effluent in Washroom for Flushing and
Rainwater – Rooftop Collection & Recycling project, we’ll deliver
We’ve already surpassed our 2025 metric of reducing water durable water recycling, reuse and conservation. This project was
by 10 percent at our water-stressed facilities. In fact, we’ve completed in February 2024 and we now plan to apply its learnings
achieved an 18.4 percent reduction since 2017. to other water-stressed locations.

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Spotlight: Mexico Our solutions in action

In Mexico, many water kaizens were performed during our Our team facilitates a focused, global effort to reduce water
fiscal year as part of our environmental initiatives in our consumption at our updated list of water-stressed locations Data center cooling solutions
manufacturing plants. For example, at one site, our restroom worldwide. As such, our global program for water reduction,
water is recycled gray water from an industrial park that reuse and recycling propagates the best practices Spotlight: Silent-Aire
helps to maintain the circularity of water. One of the most implemented in each of our water-stressed locations.
important achievements, however, occurred at our Cienega This systematic approach to water conservation will be Through Silent-Aire’s next-generation direct evaporative
site, where our EHS and maintenance teams led a project to added to our Johnson Controls Manufacturing System cooling (DEC) solutions, we’ve delivered water reductions
install water-saving equipment, such as new plumbing and (JCMS) for application throughout our global facility network. of 30 percent for our data center customers. This is due
more efficient toilets. As a result of this, we’ve reduced to advanced technologies, including microporous fiber
membranes, that help to eliminate water droplets present
approximately 38 percent of our 2023 average water In addition, our approach to the siting and management of
in other manufacturers’ DEC solutions, improving energy
withdrawals in cubic meters/earned hours. our facilities also remains consistent with our commitments efficiency in the process.
as a signatory to the United Nations Global Compact, our
We measure consumption from facilities in our operational Code of Ethics and our environmental health and safety Having launched two projects in 2023, we now plan to
control of our manufacturing and office buildings, as well standards, as well as applicable laws and regulations. increase production while continuing to offer substantial
as detecting and repairing water leaks, recalibrating flow energy and water savings to one of the fastest-growing
meters and deploying water-saving technologies. Since 2018, industry segments in the world.
we’ve implemented projects globally to reduce water Spotlight: Wuxi, China
consumption and promote recycling and reuse processes,
further enhancing circular processes throughout our global In Wuxi, China, we’ve delivered significant water savings,
network of facilities. To complement this, our recycling estimated at 1200 cubic meters per year, by changing the
processes also enable the proper discharge of water through way we interact with water. This facility produces many large
wastewater treatment processes to prevent discharge to the products and employs approximately 1,000 people. Every
natural, freshwater environment. year, we complete new water-saving projects, including fixing
underground water leakage, installing water meters in each
workshop and the water-free testing of larger chillers. We
also recycle water from rain and steam condensate.

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AquaMist ULF (Ultra Low Flow):

low-pressure water mist technology
AquaMist ULF
Water mist is a fire suppression technology that combines effective fire suppression low-pressure water mist system
with the sustainability solutions that building and industrial plant owners desire. protects your whole building
Water is one of nature’s most precious resources and, However, the sustainability benefits of this system extend Machinery
spaces
while its conservation is crucial, it has proven an enduring beyond just water savings. With smaller pipes and
tool in combating fires. It has the benefit of being both equipment than a traditional sprinkler system, AquaMist
an environmentally-friendly suppressant and a renewable ULF also has reduced material usage, which can lead
resource. As a global leader in fire protection, Johnson to lower levels of C02 emissions associated with Conference
rooms
Controls offers a wide portfolio of trusted technologies manufacturing and transportation. Similarly, as a
Hotel rooms /
that help customers meet their fire protection needs, low-pressure solution, this system has smaller equipment offices Offices

while achieving their broader mission. Water mist and electrical requirements than high-pressure water False
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technology, in the form of AquaMist ULF (Ultra Low Flow), mist alternatives. Using AquaMist ULF, property owners ceiling and
false floor
5.2
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is a key piece of this offering. can minimize their carbon footprint, while promoting
Kitchens
sustainable supply chain practices.
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One of the most compelling advantages of AquaMist ULF S

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is its remarkable water efficiency. As a low-pressure Johnson Controls traces its fire suppression history to the
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water mist system, it offers significant sustainability invention of the modern fire sprinkler. As such, AquaMist Archives AN
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benefits, including the reduction of water usage during ULF was built on decades of industry leadership and
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fires. In fact, it uses up to 80 percent less water than expertise, leading to an efficient solution that’s well Storage areas
IT / server
traditional fire sprinkler systems. As a result, AquaMist suited to a wide range of applications, including data
ULF is particularly appealing for areas facing water centers, hospitals, heritage buildings, industrial AS
EO
S

Shops Technical rooms

scarcity, such as desert climates and those prone to fryers, machinery spaces/equipment and more.
drought conditions. In this way, AquaMist ULF can help With its low-pressure technology, it helps building
building owners meet their sustainability goals and owners achieve their water conservation goals
minimize strain on local water resources. without compromising on effective fire suppression.

To learn more about the benefits of AquaMist ULF,

watch our video here.

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Wastewater efforts Water conservation with local and state governments

Acknowledging the major energy and GHG footprint associated Through our work with local and state governments, we aim to address
with water pumping and treatment, we’ve delivered 22 projects in the issues of water scarcity, aging water infrastructure and clean water
wastewater management, delivering over $4 million in wastewater and sanitation. To this end, we have delivered 60 projects in water
savings to customers in the process. metering and leak detection, providing over $8 million in water
savings as a result.
Though wastewater treatment has a considerable energy cost, our team has executed projects
that reduce the consumption of energy from the grid, while also producing renewable energy.

Over
22
projects in $4 million $8 million
60
wastewater
management in wastewater savings in water savings projects in water
metering and leak
detection

Spotlight: Spotlight:
Our water conservation upgrades helped us deliver over 290 million gallons of water and sewer In Toledo, Ohio, 126,000 mechanical water meters, which have lost their accuracy over time,
savings during a large construction project. In partnership with the construction firm, we installed are being upgraded to new static water meters, which maintain their accuracy over their useful
high-efficiency water fixtures to over 16,000 homes, dramatically reducing water withdrawals. life and can also identify leaks at the customer’s property. These new water meters will be read
On top of this, the project also featured heating and cooling equipment upgrades, saving over through an advanced metering infrastructure (AMI) system to fully automate meter readings and
36,000 metric tons of carbon dioxide. In the end, the full breadth of home upgrades resulted in virtually eliminate vehicle emissions from the meter-reading process. The project also includes a
significant reductions in carbon dioxide (CO2), nitrogen oxide (NOx), sulfur dioxide (SO2) and customer engagement web portal that informs account holders about leaks on their property and
other environmentally-harmful emissions. provides them with useful information about finding and repairing leaks on domestic plumbing
and offers useful tips for conserving water.

Saving
over 36,000 metric tons of
carbon dioxide 126,000 mechanical water
meters upgraded

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Johnson Controls is committed to delivering smart, healthy

Biodiversity and sustainable buildings.
304
As part of our efforts to fulfill this commitment, we review facility siting to fully understand
the climate, land-use change, biodiversity and nature implications associated with development.
We’re committed to managing our nature-related risk To that end, we prioritize retrofit opportunities and minimize greenfield development opportunities
whenever possible. In fact, site-selection management begins with optimizing current locations
and are continuously increasing our understanding of to mitigate greenfield development to the greatest extent practicable.
nature-related risks and opportunities and mitigating our
impact on nature and nature’s impact on our business through We follow a three-point plan to minimize the impact of development and to ensure that
management of the key areas and transparent disclosure. development mitigates emissions and impact on nature. In priority order, this includes:

As such, we take active measures to ensure our impact on biodiversity and

ecosystem use is minimized. Through the use of the WRI Aqueduct tool and Finding development opportunities that retrofit and
1
consultation with resources like the IUCN Red List, we take precautions in transform existing floorspace
locations where biodiversity and ecosystem use impacts could occur.

Finding development opportunities that add floorspace

2
to existing sites

Finding development opportunities that add floorspace to new

3
sites best suited to minimizing the emissions and nature impacts
of that development

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Supplier sustainability Global supplier scorecard harmonized metrics (100 points)

and supplier diversity
Quality
• Year-over-year improvement (7)
Sustainable supply chain • Reject rate (7)

We expect suppliers to behave ethically and to maintain

• Responsiveness (7)
21% 21%
Cost
open and honest communication.
• NetsSavings (7)
• Payment terms (7)
Johnson Controls expects 100% of our suppliers to abide by the principles
• Engagement platforms (7)
outlined in Values First: The Johnson Controls Code of Ethics, which covers
issues such as labor, human rights and the environment. In line with this, we
Supplier resilience
have policies and procedures in our business for removing unethical suppliers
from our approved vendor lists if they do not or will not comply with
our expectations.
•
•
Financial assessment (6)
Supplier profile (4)
21% 16%
In 2023, we expanded our Supplier Sustainability Program to include EcoVadis, Delivery
a globally-recognized environmental, social and governance (ESG) assessment
ratings agency, in order to evaluate our supply chain. Currently, 38 percent of
our enterprise spend, accounting for over 1600 suppliers has been assessed
•
•
To promise date (10)
To request date (6) 21%
• Number of delivery disruptions (5)
in detail across each of these dimensions. Our target is to have detailed
third-party assessments of 50 percent of our supplier spend by the end
Environmental, Social & Governance
of 2026 and 80 percent by the end of 2028. Our supplier scorecards
weight sustainability equal to cost, quality and delivery in supplier • Supplier diversity (3)
performance evaluations. • Environment; Human rights; ethics;
Sustainable procurement (18)
From 5 pts to 21 pts

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Through our EcoVadis program, we assess Further supplier oversight may also be Supplier diversity
our suppliers and create transparency on prompted by negative reports regarding
four key pillars: environment, labor and the environmental and social conditions of
human rights, ethics and sustainable a supplier’s facility or process. Along these Supplier diversity is a set of commercial and purchasing processes
procurement. To complement this, we use same lines, the falsification of data is taken that incorporate diverse-owned businesses as elements of our
artificial intelligence to collect data from the very seriously and appropriate follow-up
public domain and evaluate its relevance to actions are taken whenever data is suspect,
product and service offerings.
our business relationships. When an issue potentially resulting in the termination of
Johnson Controls and its customers define During 2023, we increased our spend on
arises, we proactively work with the supplier the contract.
diverse suppliers as companies that are certified diverse business enterprises to
to develop corrective actions.
certified as owned, operated and controlled $598 million.
To date, no significant social or
by minorities, women, members of the
Our sourcing board reviews the supplier environmental performance issues have
LGBTQIA+ community, veterans, people This represented a 41 percent increase
scorecard and specific sustainability ratings. been identified with any of our suppliers.
with disabilities and members of indigenous compared to 2022, far exceeding our
Supplier evaluations are reviewed by Current data indicates that no supplier has
communities, as well as those designated commitment to grow our spend with
category managers. Suppliers identified refused to abide with the essence of our
by government agencies as small or certified diverse business enterprises at
as high-risk require an improvement plan. Code of Ethics, nor has any supplier
disadvantaged businesses. a rate higher than revenue growth.
Where the supplier has scored poorly, we been terminated because of social or
expect all issues will be immediately resolved environmental performance issues. Since
Our diverse business enterprise initiative To achieve this, we identified diverse suppliers
by the supplier or that the category manager 2018, we have completed 2,111 Supplier
is directed by senior management and is and fully integrated them into our existing
will raise the issue to the procurement Assessments. During the COVID-19
integrated into our corporate strategy. procurement processes, including category
leadership lead for immediate risk mitigation. pandemic wherein travel restrictions
However, we understand that supplier strategies, sourcing board events and
If the supplier doesn’t remedy the issues, prevented on-site visits, our assessments
diversity is a team effort and requires the supplier development activities.
it can result in termination of the were conducted virtually by way of desktop
support of each office, facility and account.
business relationship. audits. These assessments resulted in 15,828
As such, goal achievements and progress At Johnson Controls, we’re committed to
corrective action items where the supplier
are reviewed and communicated throughout providing safe, ethical and sustainable
We also rely on local, state and federal had to make required changes to their
the organization on a monthly basis. products and services. We strive to
agencies to monitor suppliers’ compliance systems and processes in order to remain
partner with suppliers that have values
with environmental and labor laws. We often within the Johnson Controls extended
We have a commitment to increasing diverse and ethics equal or equivalent to our own,
have direct discussions with regulatory supply chain network.
supplier spend at a rate exceeding revenue allowing us to achieve outstanding
agencies to review a supplier’s compliance
growth. To support the goal of increasing performance that meets or exceeds our
record and we even perform site audits of See our supplier portal for more information.
our spend with certified diverse business customers’ increasing expectations.
selected suppliers to ensure that the proper
enterprises, we launched an initiative focused
environmental and social processes are
on underserved markets, through which we
documented, implemented and
provide training and tools to our suppliers to
remain effective.
help them increase capacity and win more of
our business.

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How we work
Governance
We aim to demonstrate our
commitment from the top
and to integrate sustainability
into company goals and
decision-making.
 Sustainable products Greenhouse gas Social impact and
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and solutions emissions employee experience

Governance principle: Governance principle:

Link sustainability and diversity goals to executive compensation to drive accountability Drive sustainability oversight by the Board of Directors

Progress: Progress:
Sustainability and diversity performance goals are required for the top leaders of our The board reviews and discusses environmental, social and governance (ESG) goals and
company, including our CEO and executive team. These goals are included as part of achievements, as well as matters important to our strategy, including reviewing our
the individual performance modifier of +10 percent to -25 percent, which is used to sustainability strategy and performance annually at a minimum. The Governance and
adjust the annual incentive award through a judgment-based assessment of how Sustainability Committee of the board receives quarterly progress briefings on
performance was delivered, taking into account our culture and values, as well as environmental, social and governance programs and goals, management, risks,
any exceptional circumstances during the year. To complement this, more than trends and environmental health and safety (see Sustainability Governance).
21,000 employees also tied their annual goals to sustainability and diversity in
2023 (see Executive Compensation).

Governance principle:
Align reporting with recommendations of the Task Force for Climate-related Financial Disclosures
Governance principle: (TCFD) and International Sustainability Standards Board (ISSB)
Ensure board diversity in gender, ethnicity, citizenship and skills

Progress:
We disclose our climate-related financial risks consistent with guidance from the Task
Force on Climate-related Financial Disclosures. We report them in our TCFD Report
Progress: and in the CDP Climate Change Disclosure, and have even been named to the CDP A
Women account for 33 percent of our
List for our disclosure and transparency. In 2022, we updated our climate-related risk
Board of Directors, while 75 percent of
and opportunity scenario analysis consistent with TCFD guidance. We use that analysis
members are diverse in gender, ethnicity
to identify the most critical climate-related risks and opportunities and to develop
and citizenship (see Company Leadership).
management strategies for mitigating risks and capitalizing on opportunities. We also
Women on Members diverse in integrated climate-related risks into our formal enterprise risk-management process to
the Board of gender, ethnicity
Directors and citizenship ensure the use of a consistent risk framework across the enterprise and to create
accountability and visibility up to and including the board (see Enterprise Risk Management).

Overall, Johnson Controls uses a principle of transparency in its reporting: we do what we say we’ll do and are transparent about where we can improve. We report in alignment with GRI Standards,
report to ISSB topic disclosures as a SASB Reporter, now part of IFRS, and provide voluntary and mandatory ESG reports for our customers, investors and jurisdictions globally.

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Company leadership Responsibility for economic, The full Board of Directors oversees strategy and strategic risk
through robust and constructive engagement with management,
2-9 | 2-17 | 2-24 | 3-1 environmental and social topics taking into consideration our key priorities, global trends
impacting our business, regulatory developments and disruptors
2-12 | 2-13 | 2-14
The Johnson Controls Board of Directors is guided by in our businesses. The full board provides oversight for
our corporate governance guidelines, committee processes established to identify and manage the company’s
charters, Code of Ethics and articles of association, The mission of our Board of Directors is to impacts on the economy, environment and people. This includes
all of which are publicly available in the corporate
governance section of our corporate website. promote the long-term value and health of reviewing the results of management’s enterprise risk
management process, which identifies the company’s top risks.
Detailed information about our executive leadership Johnson Controls in the interests of our
and governance structure, as well as our Board of The board uses this information to understand the key internal
Directors and its committees, are also publicly
shareholders and to set an ethical tone at and external risks faced by the company and to ensure that these
available in our 2024 proxy statement, our annual the top. All corporate authority is exercised risks are effectively managed.
report on form 10-K and on the leadership by our Board of Directors, except for those
page of our website. The board also receives updates from management on business,
matters reserved for our shareholders.
sustainability, health and safety, human capital management and
We believe good governance requires not only an
In general, the management of Johnson Controls is responsible other topics to better inform its understanding of how our
effective set of specific practices, but also a culture
for developing our overall mission and strategic plan on an business and strategy impacts internal and external stakeholders.
of responsibility and accountability throughout
the company. Governance at Johnson Controls is enterprise and business level. Our Board of Directors retains
intended to foster and promote both. In line with oversight authority, defining and overseeing the implementation In line with this, the board reviews and discusses ESG goals and
this, we’re also committed to recruiting and of, and compliance with, standards of accountability, while achievements, as well as matters important to our strategy, such
retaining directors and officers of proven monitoring the effectiveness of management policies and as reviewing our sustainability strategy and performance at least
leadership ability and personal integrity. decisions to ensure the company is managed in such a way annually. The Governance and Sustainability Committee of our
to achieve its objectives. Board of Directors has been delegated primary oversight for the
sustainability and health and safety matters impacting our
Board of Directors and board committees company and is briefed each quarter on our progress. The full
Our Board of Directors approves and oversees the board also receives periodic briefings during the year on
implementation of the company’s mission, strategic plan and sustainability matters, ranging from our sustainability initiatives
business strategies, while providing advisory support to and progress to the intersection of sustainability and our
management. Its vision and values incorporate our company business strategy. The Governance and Sustainability Committee,
vision of a safe, comfortable and sustainable world, as well together with the full board, provides oversight for our progress
as our company values of being integrity-first, purpose-led, toward, and achievement of, the sustainability strategies and
customer-driven, future-focused and one team. goals established by management.

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Our Compensation and Talent Development Chief Sustainability and External Relations Executive compensation tied to sustainability and diversity
Committee has been delegated primary oversight Officer; and Vice President and Chief
of our talent development and human capital Procurement Officer. 2-19 | 2-20
management efforts, though our full Board
of Directors is also briefed on these matters In addition, local business leaders are also
periodically during the year. This includes responsible for the impact our business has on
Sustainability and diversity performance goals are required for the top
diversity, equity and inclusion, as well as our the environment and local society, while the leaders of our company, including our CEO and executive team.
overall employee experience. The committee EC further delegates relevant authority for
is regularly briefed on our initiatives to foster, economic, environmental and social topics, These goals are included as part of the Employee and external engagement:
develop and maintain a high-performance including all the material aspects discussed in individual contribution modifier applied to Fostering a culture of sustainability and
culture. With this in mind, it reviews the results this sustainability report, to the Environmental, their annual incentive award calculation, an enhanced employee experience that
of management’s initiatives to engage with Social and Governance Leadership Committee which assesses an individual’s contributions engages and attracts people who want to
employees in order to understand how the (ESG LC) (see Sustainability Governance). and actions towards our business and make a difference.
company’s policies and practices impact the operational improvements, as well as our
workforce and the overall employee experience. Shareholder engagement progress in sustainability and diversity. In addition to this, our CEO reports to our
The committee provides advice and feedback Our outreach efforts are generally led by Board of Directors on ESG progress on a
to management based on the results of these management representing a wide variety of Sustainability and diversity goals are factored quarterly basis. With this, a quarterly CEO
efforts to help guide management’s strategy to functions, including corporate governance, into the individual contribution modifier of scorecard is prepared with performance
improve the employee experience and to drive sustainability, human resources and investor +10 percent to -25 percent to assess against annual ESG and other business
a high-performance culture. relations. The feedback we receive through individual contributions to our performance. targets, which is then reviewed by the full
biannual engagement efforts is an important Board of Directors.
Chairman and CEO, Chief Sustainability factor in discussions regarding our governance This includes:
Officer, Chief Human Resources Officer and business practices. The outcomes of these Integrating sustainability into the goals of
and Executive Committee discussions are reported to our Board of Climate: Progress toward our emissions- our executive team and linking them to
Authority for day-to-day management of Directors by management. In addition, the reduction goals and achievement of top-tier compensation ensures sustainability is
economic, environmental and social topics is Governance and Sustainability Committee sustainability ratings. embedded in our products, services
delegated to the Executive Committee (EC), regularly reviews relevant shareholder and and culture.
which comprises the senior executives stakeholder correspondence addressed to the Health and safety: Realizing our Zero Harm
responsible for all our major corporate functions. Board of Directors. These methods of vision by championing health and safety
The most senior positions with operational engagement provide our board with valuable initiatives that result in improved employee For 2024, more than 21,000 employees have
responsibility for environmental and societal insights into the views of our shareholders well-being and safety outcomes. tied their annual goals to sustainability,
aspects include the Executive Vice President, and other stakeholders. diversity or both, an increase in just one
General Counsel; Executive Vice President and Diversity and inclusion: Continued progress year of more than 5,000 employees who
Chief Human Resources Officer; Vice President, toward our diversity and inclusion goals. are committing to furthering sustainability
and diversity at Johnson Controls.

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Enterprise risk management Due to the importance of climate-related issues, we also In addition to this, the board regularly receives updates covering
specific risk topics from business leaders, the General Counsel,
engage in a focused risks and opportunities process specific
2-12 | 2-23 | 2-24 | 201-2 | 205-1 to climate-related risks and opportunities, which is aligned Chief Information Officer, Chief Sustainability and External
with our overall ERM framework. We do this every other year. Relations Officer and other functional leaders. It also reviews
In the interim years, risks identified through this process are the risks associated with our financial forecasts, business plan
We incorporate sustainability into
reviewed and updated as appropriate. and operations, which are identified and managed through our
our enterprise risk management ERM process.
(ERM) process and integration We govern our enterprise risks and opportunities through a
continues to evolve. robust risk management and mitigation program: Our ERM process provides a common framework and terminology
to ensure consistency in identifying, reporting, analyzing and
As a global industrial company, we face a range of • Our Board of Directors has a risk oversight role managing key risks. It’s also linked to the strategic planning
risks, including general economic, credit and capital consistent with our governance structure process, compliance and internal audits, and includes a formal
market conditions risks, geopolitical risks, regulatory process to identify and document the key risks to Johnson
risks, global climate change risks and several other Controls as perceived by a variety of stakeholders in the
• Management has day-to-day responsibility for
risks that are described in more detail on pages
assessing and managing risk exposure enterprise. To add to this, a risk committee participates in
11-26 of our fiscal year 2023 Form 10-K.
the ERM process in three ways:
With this in mind, we have a comprehensive • The board and its committees provide oversight
enterprise risk management (ERM) program that in connection with those efforts, with a particular 1. Identifying and developing mitigation plans for
engages a variety of stakeholders across the focus on the most significant risks we face operational risks at the functional and regional levels
enterprise to identify our top internal and external of the organization
risks. As part of this, our board is primarily The board performs its risk oversight role both directly and
responsible for overall risk oversight, including the through its standing committees. Throughout the year, the board 2. Providing feedback on the ERM process, procedures
company’s risk profile and management controls. and results
and each of these committees spend a portion of their time
More detailed information on the risk oversight
reviewing and discussing specific risk topics. Board meetings
role of the Board of Directors is disclosed on page
29 of our 2024 proxy statement. regularly include strategic overviews by our CEO and other 3. Escalating any new risks as appropriate to the
members of senior management that describe the most significant Executive Committee
issues, including risks affecting us. On an annual basis, the Chief
Ethics and Compliance Officer and other members of senior To complement this process, we also have key teams in place to
management report on our top enterprise risks, as well as the oversee and advise on our sustainability risks and opportunities,
steps management has taken or will take to mitigate these risks. including our Executive Committee, Executive Leadership Team,
the ESG Leadership Committee and specialized committees and
management groups. The results of enterprise risk management
activity are presented to the board at least annually.

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Ethics and integrity Code of Ethics

2-16 | 2-23 | 2-24 | 2-25 | 2-26 | 2-27 | 3-3 | 205-2 | 205-3 410-1 Our Code of Ethics applies to everyone at Johnson Controls, including the Board of Directors,
RT-EE-510a.1 company officers, employees, agents and contract workers. It’s available in 33 languages and
provides specific guidance on the behaviors that drive a global culture of ethics and integrity,
We’re proud to have been named one of the World’s Most updated periodically to reflect changes in laws, regulations and company policies. Compliance
with our Code of Ethics and our Anti-Corruption Policy is a condition of employment.
Ethical Companies® for the 17th time in 2024, joining just 11
companies worldwide who have received this honor 17 times. All employees receive training and communications on our Code of Ethics in the following ways:

Our company’s ongoing success stems from our deeply engrained culture of
integrity, guided by our Code of Ethics and the principles in our Human Rights
All new employees are required to attend training on our Code
and Sustainability policy. In fact, integrity is at the center of everything we do.
Acting with integrity allows us to meet the high expectations of our customers, of Ethics and attest that they have read, understood and will
partners and communities, giving us a competitive advantage in the process. comply with it as a condition of employment

For us, doing business with integrity

Every two years, all online employees must complete an ethics
is the only way to do business. certification that requires completion of the ethics training
module and a review of the Code of Ethics

The Code of Ethics is regularly addressed by our managers in

employee meetings

The Code of Ethics is reinforced and referenced via tone-at-the-top

communications and messaging to employees throughout the year
(employee portal, in-person meetings, web casts, emails to
employees, etc.)

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Training Board oversight

205-2 | 410-1
The Board of Directors has overall oversight responsibility for ethics
In addition to Code of Ethics training, and compliance at Johnson Controls. The Chief Ethics and Compliance
we train our employees and Board Officer provides quarterly updates to the Audit Committee of the board
of Directors on a variety of anti- on significant investigations, integrity helpline metrics, compliance
corruption, competition and training and communication, and program highlights. The Audit Committee
privacy-related matters. also has oversight responsibility for the contents of the Code of Ethics.
Employees who work in functions at elevated risk
receive our periodic Vital Values online training, Integrity helpline
covering specific ethics and compliance topics 2-16 | 2-25 | 2-26 | 205-3
such as anti-corruption, conflicts of interest,
fair competition and privacy. Twice per year, At Johnson Controls, we value an environment where everyone is However, the integrity helpline is only one of several communication
all managers in the company also conduct Values vehicles that employees can use to raise ethics-related concerns.
empowered to question any possible wrongdoing. Anyone who is
in Action sessions, which are scenario-based
concerned about potential violations of our Code of Ethics, company Often, employees discuss such issues directly with their manager,
ethics discussions with their teams. In fiscal year
policy or the law is expected to speak up. while they’re also encouraged to reach out to their human resources
2023, we achieved 96 percent completion
of these trainings. representative, legal department, compliance team or integrity
With that in mind, a 24-hour integrity helpline managed by our Ethics champions with any questions or concerns. Alternatively, employees
Furthermore, as part of our Third-Party Program and Compliance team is available to anyone who wishes to raise an can contact the compliance team directly by using the Ask Compliance
approval process, we require all high-risk business ethics or compliance concern with the company. Available in 47 mailbox. Queries sent to this mailbox are reviewed and sent to the
partners to complete mandatory anti-corruption languages, the integrity helpline is operated by an independent appropriate compliance contact.
training prior to their engagement with third-party vendor and allows callers to log concerns anonymously.
Johnson Controls. We strictly prohibit retaliation against anyone for reporting
Employees, suppliers, customers and third parties can raise concerns concerns or co-operating with a company investigation.
by phone or through the web-based integrity helpline portal.
Concerns raised via the integrity helpline are triaged and routed to In fiscal year 2023, there were no incidents of corruption which
the appropriate function for review and investigation. Statistics are would have a material impact on our company or our stakeholders.
produced regularly and are reviewed by senior executives and the All reported issues of alleged corruption are documented, investigated
Audit Committee of the Board of Directors. and remediated until resolution.

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Operations assessed for risks related Fair competition Spotlight

to corruption 206-1
205-1 | 412-1 As part of our fair competition program,
Our policies and practices support a free and we recently launched a just-in-time
Our global risk assessment framework includes competitive marketplace, with key elements communications process to mitigate
anti-corruption audits, the Third-Party Program of our fair competition program including our the fair competition risks associated
and enterprise risk management (ERM). Each of Code of Ethics, fair competition policies and with trade shows and similar events
these programs plays a role in addressing competition law guidelines: where our employees may interact
corruption risks for our company. with competitors.
• Our Code of Ethics sets expectations, provides guidance
Our Third-Party Program is dedicated to performing and links to employee resources related to fair competition
Two or three days before an employee is scheduled
anti-corruption due diligence for high-risk business partners to attend such an event, they receive a brief email
of Johnson Controls prior to their engagement around the globe. • Our global Antitrust and Fair Competition Policy informs
from the Ethics and Compliance team. The email is
employees about the fundamental requirements of
translated into the employee’s local language and
competition laws and their duty to comply with them
provides quick, plain-language guidance about what
In fiscal year 2023, more than • Our Competition Law Guidelines use real-life scenarios to
employees may and may not discuss with competitors.

1,400
By delivering these reminders right before the event
help employees understand fair competition risks and to
in question, we help keep the rules top of mind for
make the right decisions
employees when they need them most.

In addition to our policies governing fair competition, Johnson

Johnson Controls business partners Controls has a robust training framework to educate our global
workforce to ensure employees comply with expectations. As an
in over 100 countries added measure, employees who work in functions at elevated risk
receive regular online training on fair competition, among other
were screened by a team of dedicated due topics, while our Values in Action sessions often include fair
diligence specialists and approved for competition elements and discussion questions.

business through this program. See: Values First: the Johnson Controls Code of Ethics and
our Human Rights and Sustainability Policy

To complement this, our annual ERM process specifically covers

bribery and corruption risks, with progress reported to the
Board of Directors on an annual basis.

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Our employees Strategic talent reviews and succession planning occur

annually across our business areas globally. In these
meetings, senior leaders discuss key talent management
topics, including the review of critical roles, top talent,
Talent management strategic talent moves and their talent management
focus for the coming year. As part of this process, talent
At Johnson Controls, we support the continued development assessments and individual development plans are used
to drive the development of high-potential employees,
of our employees and have embedded this focus throughout
identifying individual key strengths and areas for
our performance and talent processes. We encourage our improvement, as well as events and experiences
employees to own their careers by giving them the forum needed for further development.
to discuss their career aspirations, as well as the support
In 2021, we launched an Enterprise Leadership Competency
to pursue them.
model to define a consistent set of capabilities and
behaviors across the organization, from individual
Our career development processes include career profiles, manager discussions
contributor to senior executive. This model has been
and individual development planning, all of which inform the annual organization
embedded into our talent processes, including recruiting,
talent review and succession planning process. Each quarter, leaders focus
performance management, learning and development,
specifically on the development of employees who report to them.
career development and succession planning. Leveraging
this model allows us to provide common information to
employees on our expectations for successful performance
in all roles and across all levels of the organization,
enabling employees to obtain feedback on their strengths
and development areas as it pertains to both their current
roles and the roles to which they aspire. Employees can
also initiate a 360-feedback survey, aligned to our
Enterprise Leadership Competency model, to obtain
feedback from their manager, peers, direct reports
(if applicable) and other business stakeholders.

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Employee development, training and education

2-7 | 401 | 404 | 404-2

At Johnson Controls, we support the ongoing development

of our people and continue to provide opportunities for
our employees to grow their careers. of our total workforce

85,510
Total learning hours consumed

1.32 million
Our goal is to meet learners where they are, embedding learning in the workflow, with a focus
on the skills employees need to succeed in their current and next roles. This focus is particularly
important given that approximately 41 percent of our management positions are filled internally. employees completed
avg. 15 hours per employee learning activities
In fiscal year 2023, we offered a robust curriculum of over 197,000 activities, consisting of videos,
courses, e-learning, documentation, articles and books, including over 4,000 active (in-person or
virtual) learning courses. During this time, over 1.36 million learning activities were completed

197,000
by approximately 85,510 employees, or 86 percent of our total workforce. Total learning hours

1.36
consumed by employees amounted to 1.32 million hours, an average of almost 15 hours per
employee, including time invested in formal learning and standard time invested in self-paced
reading or video consumption. activities in fiscal year 2023
including over
million
4000
To ensure our employees have the skills and capabilities to drive success now and into the future,
we aligned our professional and leadership development learning with our enterprise leadership
learning activities completed
competency model, which we launched in 2020. Our leadership competencies are the key
capabilities that define how employees can contribute to their own development and career virtual or in-person in fiscal year 2023
success, regardless of their function or level in the organization. learning courses
To complement this, all managers were accountable for introducing and teaching an area of our
strategy to their teams each month in 2023. Through our Strategic Clarity Conversations initiative,
they provided a leader-led discussion to drive clarity around our strategy and shared purpose
across the enterprise. Furthermore, our rotation programs in finance, and sales and marketing, coupled with our
other early career sales engineering programs, continued to grow in fiscal year 2023, while
our learning and development teams have won awards for their high-quality learning
programs in each of the last five years.

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Leadership development
We believe in developing our employees at all levels, with a focus • Emerging Leaders
on preparing them for leadership roles. Our portfolio of employee This program is designed to accelerate the role transition of an individual contributor to a
frontline manager by arming them with the knowledge, skills and tools needed to effectively
development programs is designed with this in mind, while also
handle the challenges they will face early in their career as a leader. This program annually
covering topics for those transitioning to new roles or those engages 150 managers from around the world.
needing to drive and manage new changes.
• Women in Leadership
• Extreme Learning Program (XLP) This development program explores the unique issues that women leaders face, while
This is a development program for senior leaders who have demonstrated the potential enhancing the leadership skills of participants to empower them to achieve their full
to be a next-generation global leader at Johnson Controls. Every other year, a group of professional potential. This program annually engages over 500 women from around
around 25 high-potential leaders is challenged to solve real-world business problems, the world.
while building new relationships and exploring global business issues. Since its launch
in 2004, 13 classes have completed this program. • Leadership Fundamentals 1
This foundational leadership program equips newly promoted first-time managers
• Johnson Controls Leadership Edge (JCLE) with the leadership and management skills needed to effectively build and lead a
This is an intensive development and acceleration program for senior managers and directors high-performing team.
who have demonstrated the potential to be the next generation of leaders at Johnson Controls.
The program helps leaders shift their mindset and behaviors to think and act with broader scope • Leadership Fundamentals 2
and responsibility by strengthening their knowledge and skills in business strategy, financial This leadership program equips newly promoted managers of managers with the leadership
acumen, customer centricity, digital capabilities and people leadership. This program began and management skills needed to effectively build and lead multiple teams with varying
in 2007 and now engages 150 managers from around the world each year. scope and increased complexity and scale.

• Rocket Leadership Development (RLDP) • Change Leadership Curriculum

This is an intensive development and acceleration program for managers of individual This award-winning curriculum helps employees at all levels develop change competence.
contributors who’ve demonstrated the potential to be the next generation of leaders at The training reaches thousands of employees per year and includes: Change Practitioner
Johnson Controls. The program helps leaders shift their mindset and behaviors to think Bootcamp, Change Agents: Delivering Project Results, Reinforcing Change, Leading Yourself
and act with broader scope and responsibility by developing their business acumen and Through Change, Leading and Accelerating Change, Communicating Change and Sponsoring
people leadership. Originally delivered in Asia, this program was expanded to all regions Change for Senior Leaders.
in 2021 and now engages 150 managers from around the world each year.

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Commercial training Our commercial training programs include:

programs BEST Internship blended in its approach. There are three but aren’t limited to, negotiation skills,
This development program is designed to different programs offered under this umbrella pricing, account management and digital
We invest in developing the recruit and hire college engineering students based on different lines of business: knowledge. Some projects for the commercial
in their junior year by offering a summer • SalesBuilder Security organization are anticipatory of shifts in our
talent and capabilities of our internship position. Interns are then evaluated • SalesBuilder Fire organization, our customers’ needs and the
commercial and commercial on their existing sales competencies and • SalesBuilder HVAC commercial workforce of the future. With that
support organizations across behaviors and, depending on performance, focus, these employees have been afforded
all roles and tenures. offered a position in the next BEST class. Building Sales Leaders (BSL) significant opportunities to upskill, create
This is a six-week new sales manager career plans and develop for their future,
Our new-hire commercial training programs BEST Fire and BEST HVAC onboarding program (development program) as well as for the future of Johnson Controls.
across multiple levels and domains are best- This six-month development program for that focuses on leadership fundamentals to
in-class, with the right mix of knowledge, new graduates in either HVAC or Fire focuses help new sales managers drive results, lead These opportunities include:
skill-building and on-the-job application. on organizational knowledge, product their teams, plan for growth and develop
knowledge and sales skills. It includes themselves. Weekly themes include support Building Sales Leaders Boosters
To add to this, we continue to actively seek in-person classroom learning, simulations and resources, building and developing your BSL Boosters are ongoing, quarterly
input from our tenured employees on their and an assignment-based experiential team, sales leadership strategy, coaching development opportunities for sales leaders.
development and upskilling needs, including learning experience in the local branch. your people and sales performance The goal is to enable increased sales
building their toolset to enable them to management. Topics include, but aren’t productivity from our sales teams by
own and drive their career. SalesBuilder programs limited to, one-on-ones, pipeline inspection, improving coaching effectiveness from
SalesBuilder is a development program for coaching to account management, coaching our sales leaders. BSL Boosters train
new and experienced salespeople. It aims to sales process, business strategy and GTM managers on improving team cadences,
to provide learning, experiences, connections view and sales incentives and quota. coaching structure, day-to-day performance
and know-how for participants to apply management and overall team development.
their knowledge of the business to Johnson Sales Management Code They target continuous development of our
Controls buildings product offerings, This development program for sales managers sales leaders on a quarterly basis, with the
sales processes and customer solutions. is focused on high-impact salesperson aim of maintaining sales management
The SalesBuilder program is a 13-week activities and has an emphasis on sales standards and excellence.
journey with three learning levels: manager coaching.
foundational, consultative and specialist level.
The majority of the program is mandatory, In addition to these standard annual
though some elements are elective at the programs, commercial employees are
specialist level. The entire program is based provided with a large portfolio of upskilling
on real-life learning and application, and is opportunities. These opportunities include,

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Sales Competency Model and Sales Manager Impact OpenBlue Advocate Program
Development Assessment The Sales Manager Impact program is aimed This is a foundational program for anyone
Our Sales Competency Model was launched at supporting sales managers as they focus on seeking to develop an understanding of the
for all sellers across all channels around the specific leadership categories to improve their current digital age and the role OpenBlue
globe. At the start of the year, sellers received leadership behavior. Aligned with YourVoice, digital solutions has to play. After completing
the opportunity to take the Sales Competency our employee listening program, our sales the program, learners will be able to speak
Development Assessment, which allows for managers can identify their gaps and own confidently about the value of OpenBlue
informed discussions on gaps against desired their development. On a quarterly basis, they solutions in the current digital age, the
competencies and behaviors. This assessment receive their YourVoice results and identify technologies that enable Johnson Controls
helps guide Individual Development Plan (IDP) gaps in their leadership. They can then OpenBlue solutions and how OpenBlue
discussions between sellers and managers on enroll in this program to grow the identified digital solution projects are implemented.
areas of focus and development throughout skillsets. Some of the topics include, but
the year. aren’t limited to, providing clear goals, Winning Mindset
leading and embracing differences and This is a workshop-centered program
Competency-Based Upskilling for Sellers creating an open and trusting environment. for sales support engineers to own their
The Competency-Based Upskilling for Sellers outcomes with sellers, to build trust between
program is the starting point for all sellers to Own Your Career themselves and their internal customers,
accelerate their development and growth. Supporting the individual effort of and to use their knowledge, skill and
The purpose of this program is to allow transformation, this is a blended learning influence to increase win rates. Another
sellers to continue to invest in themselves program supported by HR partners and key aim of this program is developing an
across 22 key behaviors and skills related to people managers. It creates a career understanding of agency among the
11 competencies. Some of these skills include, ownership mindset among employees and engineers to make a difference through
but aren’t limited to, building partnerships, includes the compelling reasons one must training and discussions on partnership,
influencing with impact, knowing your own their career journey and development, accountability, outcome focus
competition, and products and solutions how to map out a career focus, how to and confidence.
knowledge. This program has been translated create a development plan and how to
into seven languages and is globally available gain support from managers.
to all our sellers across all channels.

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Field operations training Our field operations training courses include:

Service Technical Academy (STA) BEST Engineering program BEST Financial Fundamentals program
Field operations training STA is a career development program The BEST Engineering onboarding program BEST Financial Fundamentals is an
provides engineers, mechanics designed for North American HVAC service prepares new-hire and new-to-role engineers introductory business basics course
and technicians with the skills, technicians and mechanics, as well as all for hardware and software field engineering. designed to support new leaders in being
security and fire technicians. Topics include project flow, tools, systems responsible financial leaders in their
knowledge and confidence and processes. branches and markets.
to support customers. Building Operations Leaders (BOL 1.0)
BOL 1.0 is the sister program to Building BEST Service Controls program Connected Chiller Onboarding
As our technology and equipment Sales Leaders, but for our field operations BEST Service Controls is a multi-pronged This onboarding program presents all
managers. Topics include, but aren’t limited approach to onboarding mechanics, connected chiller learning on one innovative,
evolve, our technicians need an to, operations cadences, customer technicians and chiller technicians. self-paced learning platform where
ever-growing skillset in order to interactions and key performance indicators. This 12-week course teaches the basics technicians can access the materials
provide exceptional customer of reactive maintenance and repair, as well required to successfully connect chillers.
service and remain best in class Building Operations Leaders 2.0 (BOL 2.0) as covering Johnson Controls systems,
BOL 2.0 builds on the operational cadence tools and platforms related to controls. Building Solution North America (BSNA)
at maintaining building safety of BOL 1.0, diving deeper into the leadership Operation System (BOS) training program
and efficiency. behaviors that govern successful branch BEST Mechanic program The BOS centralized training program
operation. The focus of this program includes The four-week BEST Mechanic program is a focuses on all operating tools, platforms,
With this in mind, we offer a variety of upskilling frontline managers on the practices rapid onboarding and upskilling program for operations cadences (LSW) and key
programmatic courses in the HVAC, fire and leadership behaviors that make impactful employees working on the service and repair performance indicators.
and security spaces. differences to the financials, personnel and of our mechanical equipment. This program
backlogs of a branch. prepares mechanics to effectively and
These courses focus on the installation and efficiently repair equipment.
service of our products and are available BEST Installation program
via a variety of formats: remote self-paced, BEST Installation is a centralized training BEST Fire Alarm program
remote cohorts of peers or in person at one program that supports new installation BEST Fire Alarm is a 12-week onboarding
of our many training institutes across the world. technicians for the first 12 weeks of their program that helps new fire alarm installers
employment. Topics include Johnson to learn their new role. Topics include
Some courses are also blended in their approach, Controls tools, platforms and services, programming, safety and installation.
providing both online and in-person sessions. best practices in installation and professional
skills training for customer service excellence.
This course culminates in a two-day
in-person application event.

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Manufacturing training Performance management

404-3
The Johnson Controls Front-Line Manufacturing
Training program is designed to increase retention
One of our strategic drivers is to build a high-performance culture.
and decrease time to competency for priority
front-line manufacturing roles. Through a robust and standardized researching and planning career production employee population,
performance management program, development, including access to 95 percent of employees received
Johnson Controls Standard Front-Line Manufacturing Orientation non-production employees across an individual development plan a fiscal year 2023 annual review.
This program presents temporary and hourly new hires with a proper orientation the globe set goals aligned to both and online learning platform.
to their new facility, including sessions on what we make and how it’s made. business and functional objectives This standardization of performance
There is also a heavy retention focus, ensuring coverage of current employees’ and the company’s strategic plan, Our online employees also complete management enables strong
real-life career paths, positive quotes about what it’s like to work at their new inclusive of the desired capabilities an online annual review process that feedback on employees’
facility and recent community engagement activities. The program also includes defined in our Enterprise Leadership includes active participation through performance, robust career
the facilitation of the Johnson Controls Standard (OSHA Compliant) Safety Competencies and Company Values. both a self-review and a manager development planning, informed
Onboarding module. review to ensure the evaluation is pay and rewards investment, and
Employees are expected to “strive comprehensive and includes the full detailed reporting and analysis.
Johnson Controls Standard Front-Line Manufacturing Role-Based for five” by having a minimum of year’s accomplishments. This review To complement this, we maintain
Training Program five goals, with at least one being balances both achievement of intranet sites dedicated to human
Taking place in both classroom and lab/dojo settings, this program delivers development focused, and are performance metrics and resource professionals, employees
the foundational knowledge, skills and behaviors needed for new hires highly encouraged to include behavioral expectations. and managers for desktop access
and cross-training employees to become confident and competent in diversity, equity and inclusion to key human resource-related
their new roles. In addition to building the required skills to perform and sustainability aspects into In addition to this, employees and information that has been
assigned tasks, this program decreases performance impact on their goals. managers are encouraged to seek translated for global use.
tenured front-line employees by decreasing the amount of on-the-job feedback from others to include
training needed to meet proficiency requirements. To this end, employees participate in their review and to utilize Ongoing training is also provided
in quarterly goal progress review recognition received through throughout the year to ensure that
JCOL Supervisor Skills Program meetings with their managers Bravo, our recognition platform. employees understand the purpose
This 10-week program (one two-hour virtually-led module per week for 10 and have dedicated time for Each year, management participates and benefits of the process.
weeks) is designed to provide a common understanding of the supervisor role development conversations and in calibration sessions to ensure the
in all Johnson Controls plants. The program focuses on the skills and attitude activities to ensure a continued performance management process
required to succeed in the workplace and ensures that business goals are focus on career growth. is applied equitably and fairly across
achieved with trust, respect, accountability and positive workspaces. Employees have several teams and functions in the
The program also supports standardized skill building in the principles of resources to utilize when organization. Of the eligible non-
servant leadership, standard work, leading lean, lean daily management
and JCMS.

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Human rights Our business requires the line management of

each facility to ensure implementation of the
UN Global Compact
equal opportunity and no harassment policies 2-23
2-7 | 2-8 | 2-16 | 2- 23| 2- 26 | 411-1
in accordance with national, state or provincial
law. Additionally, our Executive Vice President Our human rights policy specifically states that we fully
support the United Nations Global Compact’s Ten Principles.
In accordance with our Code of Ethics and Human and Chief Human Resources Officer monitors
implementation of and compliance with these These principles are based on the Universal Declaration
Rights and Sustainability Policy, we’re committed of Human Rights, the International Labor Organization’s
policies. Johnson Controls expects 100% of our
to providing safe and healthy workplaces and suppliers to abide by the principles outlined in Declaration on Fundamental Principles and Rights at Work,
operating in such a manner that protects human our Code of Ethics, which covers issues such as the Rio Declaration on Environment and Development,
and the United Nations Convention against Corruption.
rights, human health and environmental quality labor, human rights and the environment.
in our communities. Our progress in meeting each of the UN Global Compact
Employees, temporary workers, visitors and
other non-employees are encouraged to Principles is reported publicly on the United Nations Global
We expect our employees to act in a socially and environmentally Compact website.
immediately report situations of harassment
responsible manner and require them to comply with applicable laws
committed by anyone, including visitors and
and regulations. We require our suppliers to operate in a similar manner
other non-employees. They are asked to report
and incorporate such language into our supplier contracts. Child labor
the matter to their department manager, plant
or facility manager, or local human resources 408
manager. We want to know of any allegation
of harassment or unfair practice so that Our company takes active measures to prevent child labor
appropriate action can be taken following through our policies. Both our Code of Ethics and Human
a prompt investigation. Rights and Sustainability policy address child labor and are
consistent with the UN Global Compact and ILO Convention.
To ensure our processes are working
properly, and that employees, customers We also take appropriate steps to ensure there is no child
and shareholders understand our policies labor in any of our facilities, with potential employees
and guiding principles around treatment, required to show valid identification and proof of age
respectability and integrity, we systematically before they are hired. We have not found any plants or
gather feedback and take action to improve operations that would be at significant risk for incidents
our work environment. As such, we track, of child labor.
analyze and communicate performance
outcomes quarterly.

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Forced or compulsory labor Continued external employability Conflict minerals

(Slavery and Human Trafficking policy) 2-29 | 402-1 RT-EE-440a.1
308-2 | 409-1
The competitive nature of the business requires us to We are a member of the Responsible Minerals Initiative (RMI)
There are no operations within Johnson Controls that have occasionally restructure in order to compete and survive and are committed to the responsible sourcing of conflict
been identified as having significant risk for incidents of in a rapidly changing, cost-driven customer environment. minerals throughout our supply chain. As such, we compare
forced or compulsory labor, which we take proactive In alignment with company values, when workforce reductions the aggregation of smelter lists provided by our suppliers
measures to prevent through our policies. occur, they are carried out with the utmost respect for the with the official RMI list of smelters to determine which
people concerned. In accordance with local, state, federal smelters are potentially not conflict-free. Our company works
Our Slavery and Human Trafficking policy complies with and country requirements, we also ensure the collective diligently on the detailed identification of smelters that are not
the Modern Slavery Act of 2015 and is updated annually. bargaining unit (if applicable), state dislocated worker unit conflict-free and their possible presence in our supply chain,
We’re committed to taking steps to ensure that slavery and and appropriate local government unit are advised. working to remove them from our channels with the help of
human trafficking are not taking place in any part of our our suppliers.
supply chain or in any part of our business. We require our
employees and suppliers to abide by our Code of Ethics, Trade union health and safety The overall information provided by our suppliers further aids
while we also gather information to quantitatively measure 2-30 | 403-4 | 407-1 in conducting our due diligence, including assessing reports
our suppliers’ sustainability programs and to ensure for completeness and consistency, which are subsequently
compliance with local, state, federal and country laws, Certain Johnson Controls operations are subject to collective shared with the required parties. Our due diligence
including laws on forced labor. bargaining agreements, including the health and safety processes also conform to the primary principles of
topics covered by these agreements. We strongly believe in the internationally recognized due diligence framework
We expect that suppliers should also take steps to ensure providing our employees with a safe place to work, no matter from the Organization for Economic Co-Operation
that slavery and human trafficking are not taking place in their location or union association. We communicate this and Development.
any part of our supply chain or in any part of our business. belief through our Code of Ethics, which applies to all our
As an added measure, we utilize a third-party review to employees and suppliers. We collect conflict minerals data from suppliers that are
assess our suppliers and create transparency on four key relevant to conflict minerals, and data for calendar year
pillars: environment, labor and human rights, ethics and In the European Union, our health and safety programs 2023 was received from more than 54% of those
sustainable procurement. are subject to Works Council review and approval, and relevant suppliers.
to collective bargaining agreements in certain countries.
We collaborate with trade unions and other employee Our Conflict Minerals Policy and our Conflict Minerals Report
representative organizations, as defined by local regulations, are publicly available on our website.
to improve workplace health and safety.

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Security personnel Product safety Our business is

410-1 403-7

We’re proud to have been recognized by

committed to providing
Our security mission is to
protect our people, property LexisNexis as one of the world’s most innovative
companies in its latest report, Innovation
quality products and
and intellectual assets through
the implementation of appropriate Momentum 2023: The Global Top 100. services that meet or
risk-based and business-minded
security and loss prevention tactics.
This report recognizes companies advancing innovative solutions to
today’s challenges, while laying the intellectual property foundations exceed the expectations
for further breakthroughs. This is very much in line with our company
In order to achieve this security mission, we have
processes, activities and metrics in place to support
values of being customer-driven and future-focused, which define
our commitment to helping our customers win and to continuously
of our customers
enterprise security operations that include loss improving our business.
prevention, asset protection, executive protection,
enterprise security-risk-management, security Our business is committed to providing quality products and
investigations, travel security, crisis management services that meet or exceed the expectations of our customers,
and business continuity. with responsibility for monitoring customer satisfaction residing with
the Board of Directors and business management. Deficiencies that
We employ security personnel either directly or threaten the physical well-being of any person or put the financial
through vendors, and their responsibility is primarily security of our company at risk are required to be immediately
physical security. All such personnel are sufficiently reported to management. Deficiencies may involve product quality,
qualified and are trained in our Code of Ethics, manufacturing or design, as well as safe installation, commissioning,
including our human rights policies and procedures. operations, service or maintenance.

Our internal Johnson Controls Operating System (JCOS) defines

and standardizes best practices across our corporate activities.
This includes our Commercial Excellence and Engineering Excellence
initiatives, which ensure the continuous improvement of solutions
that advance health and safety for our customers. JCOS also ensures
uniformity in dealing with customers and brings prompt, measurable
quality improvements.

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Customer health and safety

Assessment of the health and safety impacts
of product and service categories
403-7 | 416-1 | 416-2

Our products meet or exceed applicable government and industry safety Our significant product and service categories are covered by, and assessed
standard requirements. This is accomplished through the implementation for compliance with, company procedures for assessing product or service
of a standardized procedure assessing safety and health impacts for our health and safety impacts.
product development.
In line with this, we collect material due diligence information from nearly 10,000 active direct
We follow a product development and launch procedure called the Rapid Closed Loop suppliers, covering over 500,000 parts in the form of IPC-1752A Class D Full Material Disclosures
Process (RCLP), which identifies applicable product safety standards, codes and regulations or simplified material declaration statements.
and incorporates them in to the product design. The RCLP procedure uses a process known
as Failure Mode and Effect Analysis (FMEA) to address single-point failure modes in the product Our business takes potential product safety issues very seriously and routinely monitors consumer
design and manufacturing processes. For new products and products in the field, we may reports and other relevant information, including through www.saferproducts.gov. We also have a
also use risk assessments or Fault Tree Analysis (FTA) in the design to capture compounding process for determining whether products in the field have non-conformities that might be the
effects leading to failures, as well as mitigation or prevention opportunities, after which the source of potential product safety concerns.
countermeasures can be put back into the FMEAs as single-point failures.
We regularly monitor field performance, as well as performance in the factory, to determine
Product safety requirements are defined under FMEAs with the highest severity ratings. whether any non-conformities in our products could be the source of those types of concerns.
Any identified non-compliance with applicable safety standards, codes and regulations is If such circumstances exist where our product is sold to the end user, we determine the correct
addressed through preventative means, or through our validation testing or in-process/ field actions, and in cases where we supply a component and not the entire product, we work
end-of-line testing in our manufacturing facilities. In addition, a significant number of with our customer to determine the correct field response for all parties. In doing so, we identify
our new and current products are also evaluated and listed by either Nationally any requirements for reporting such actions promulgated by applicable regulatory agencies and
Recognized Test Labs (NRTL) or by qualified testing laboratories to applicable report our actions consistent with those reporting requirements.
safety standards.
We collect material due diligence information from nearly 10,000 active direct suppliers covering
over 500,000 parts in the form of IPC-1752A Class D Full Material Disclosures or simplified
material declaration statements.

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Product recalls
RT-EE-250a.1 | RT-EE-250a.2

Our products, as designed, manufactured and sold by Johnson

Controls, have not had involuntary recalls as required by regulatory
agencies specific to non-compliance with regulatory safety standards.

Product labeling and marketing

417-1

Our product labels are routinely reviewed to ensure compliance with Our installation, operation and maintenance manuals, on the other
applicable regulatory requirements across the enterprise. As a result, hand, are provided to relay specific information regarding safe use of
our products are compliant with applicable regulations, codes and products, as well as applicable safety warnings with regard to safe
standards that require specific information to be placed on defined handling of chemical substances used by products, such as oils and
labels and warnings regarding safety. Many of our products are also refrigerants. These manuals also cover safe disassembly and end-of-
listed by Nationally Recognized Test Labs (NRTLs), where these label life disposal of the product when required by regional regulations.
and information requirements are verified for presence. These label
requirements include maximum voltages, phases, amperages and Furthermore, our product installation, commissioning operation
design working pressures, as well as refrigerant types, circuit and maintenance (ICOM) manuals are, where applicable, being
protection and more as noted in the requirements of the standards evaluated and edited to reduce paper usage by using QR codes
and as verified by the NRTLs as part of our product listing. to provide online access to specific sections. In this way, required
ICOM manual revisions can be managed in a streamlined manner,
By regulation, we also create supplementary labels as needed or allowing customers access to the latest versions of these documents.
as required for the markets in which we sell, including DOE-required However, full paper versions of the manuals are still provided
efficiency, ENERGY STAR and performance ratings. In addition, all upon request.
of our product labels comply with recommended safety icons and
language requirements as appropriate, consistent with national
guidelines for safety labels.

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Data appendix
 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

2024 Sustainability Report Data Accuracy and third-party assurance

2-5

About our reporting All information in this report is based on the best available data at the time of publication. We use
several different third-party groups for data assurance. The groups selected are independent of
2-2 | 2-3 | 2-4 | 2-5 Johnson Controls and are specialized in the subject area they review.

Johnson Controls recognizes the importance of transparency, reporting in Financial external assurance
The consolidated financial statements reported in our 2023 Form 10-K are audited by
accordance with recognized frameworks including the Global Reporting
PricewaterhouseCoopers LLP, an independent registered public accounting firm.
Index (GRI), the Task Force on Climate-related Financial Disclosures
(TCFD), Sustainable Accounting Standards Board (SASB) Standards, the Sustainability external assurance
Since 2011, Apex, an independent third-party assurance provider recognized by CDP, has verified our
UN Global Compact, European Union Non-Financial Disclosure and CDP. greenhouse gas emissions data per ISO 14064-3: Second Edition 2019-04: Greenhouse Gases --
Part 3: Specification with Guidance for the Verification and Validation of Greenhouse Gas Statements.
This sustainability report is produced to provide 2023, the ISSB amended the SASB Standards in Apex also assured our water data per the International Standard on Assurance Engagements (ISAE)
greater detail on our sustainability activities, as well connection with the International Applicability 3000, having assured our waste data per this same standard since 2014. The objective of the
as additional information material to our stakeholders. of SASB Standards project. These most current assurance is to provide further confidence that our reported energy, GHG emissions, water and waste
standards are used in this report, while our separate data has a low margin of error and is consistent with externally or internally defined sustainability
annual United Nations Communication on Progress accounting principles. The certificates for these most recent assurance engagements are linked as
Since 2003, we have reported verification statements in the GRI Content Index.
qualifies for the Global Compact Advanced level.
sustainability data in accordance
with the GRI guidelines. This report ESG Disclosure Committee We use certified registrars to validate and certify our operations to various quality, environmental, six
We’ve formed a multidisciplinary steering committee sigma and safety standards, such as ISO 9000, ISO 14001 and OSHAS 18001. Additionally, filings with
has been prepared in accordance focused on our environmental, social and governance environmental health and safety and other regulatory agencies are routinely checked internally and by
with the GRI Standards for fiscal (ESG) reporting. The purpose of the steering the applicable regulatory agencies.
committee is to oversee efforts designed to enhance
year 2023. our ESG reporting in anticipation of legally mandated Environmental health and safety external assurance
ESG reporting requirements. The steering committee We use a third-party software tool for our Environmental Health and Safety Information System
We follow the TCFD's recommendations for disclosing brings together leaders from across a variety of (EHSIS) to track environment, health and safety data from facilities worldwide. Data is reviewed
clear, comparable and consistent information about functions to share knowledge on ESG reporting routinely by qualified personnel, who check not only data in the system, but also original records
the risks and opportunities presented by climate regulations, trends, controls and procedures, to and other aspects via site-level checks. Utilizing third-party auditors, the Johnson Controls internal
change in accordance with the TCFD framework. identify key ESG reporting issues and to facilitate environmental health and safety compliance audit program verifies compliance with applicable
More information on our climate risks, opportunities collaboration among functional groups in generating federal, state, provincial and/or local regulatory requirements, as well as Johnson Controls standards.
and strategy can be found in our annual ESG disclosure. It also supports our business goals of Zero Harm to people and the environment, while furthering
CDP Climate Change Response. our vision of a safe, comfortable, sustainable world. This includes being safer, healthier and having
less impact on the environment, identifying opportunities for continuous improvement and providing
We’re also a SASB reporter, now part of the IFRS education, awareness and understanding of applicable environmental health and safety requirements.
Foundation, utilizing the SASB Standard for the
Resource Transformation Sector – Electrical and
Electronic Equipment in this report. In December

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Scope Energy and emissions key Scope 1 refrigerant losses are calculated As a result, we have restated Scope 3 fiscal
2-2 performance indicators using the Material Balance Method outlined years 2022, 2021 and 2017. Categories 1 and
This report focuses on consolidated in Greenhouse Gas Inventory Guidance and 2 (Purchased goods & services and Capital
operations for the fiscal year 2023 in line Johnson Controls utilizes absolute and intensity include losses from charging air-conditioning goods) for the fiscal year 2017 remain unchanged,
with the Greenhouse Gas Protocol Corporate metrics to assess the impact of its energy and products after we build them at all relevant while Category 11 (Use of sold products) had
Accounting Standard, Chapter 3, Setting emissions. Energy and emissions reported manufacturing facilities, which are the facilities the most substantive revisions. This category,
Organizational Boundaries, Control Approach. include facilities and fleet (entities) as defined that use refrigerants in a production setting to which considers emissions from finished HVACR
under the GHG Protocol Corporate Reporting mass-produce HVAC equipment. Scope 1 mobile products, expanded its boundary to include
Rationale for choosing a base year and Accounting Standard, Operational combustion includes corporate jets and the our ducted systems, Johnson Controls-Hitachi,
The 2016 merger of Johnson Controls Control approach. company-owned and leased vehicles within our chillers (excluding absorption chillers), air
with Tyco International was a change in operational boundary. handlers and industrial refrigeration business
our company profile material enough that The following represent the operationally units. Product attributes used to estimate
our Global Sustainability Council (now ESG controlled entities included in the inventory: We record actual energy use from owned and Category 11 emissions include heating and
Leadership Committee) determined new leased manufacturing sites, our corporate cooling capacity, heating and cooling efficiency,
goals were needed. Accordingly, in 2018, • Wholly-owned entities offices and other large energy users within our refrigerant charge and refrigerant GWP.
we announced new 2025 goals related to boundary. For other buildings, including office
greenhouse gas emissions, energy, water, • Leased locations - leased locations where space, this inventory considers and estimates Greenhouse gas intensity is measured as total
waste, safety and diversity from our 2017 Johnson Controls is able to significantly modify direct and indirect emissions. For estimated scope 1 and 2 emissions divided by total net
baseline. Many of our ESG commitments operating policies for managing the facility energy and emissions, we use a Johnson sales, as reported in our 2023 Form 10-K, while
announced in 2021 are also aligned with through recognized leasing arrangements and Controls-specific energy density value based on energy intensity is total energy divided by
our 2017 baseline. other contractual requirements. More than 90 actual usage from a sample of facilities, with a total net sales. Total net sales values used in
percent of our leased locations have leasing regional usage factor for natural gas. the denominator of these calculations may be
Emissions metrics arrangements which allow us to manage our adjusted from what is reported in our Form
While we continue to measure and report on site operations, and thus are included in Starting with fiscal year 2022 data, Silent-Aire 10-K to ensure consistency with the
intensity metrics, Johnson Controls promotes the inventory and other smaller acquisitions were added to operationally controlled facilities and fleet
the use of absolute emissions and renewable Johnson Controls operational boundary and included in the energy and emissions values
energy as more relevant in terms of reducing • Consolidated joint ventures greater metrics, adding 12 manufacturing sites, as well as used in the numerator.
our impact on the climate. With this in mind, than 50 percent equity control and other buildings and the associated scope
our longer-term metrics are aligned to financially consolidated 3 emissions. Due to rounding, some of the numbers presented
absolute emissions reductions, as well as the in this report may not add up precisely to the
use of clean sources of energy. Our GHG emissions inventory includes scope 1, As the product-related emissions methodologies totals presented, and percentages may not
scope 2 and the categories for scope 3 that are for Johnson Controls continue to be improved, precisely reflect the absolute figures to which
relevant and significant to our company. Use of scope 3 emissions calculations have been they refer.
purchased electricity and steam are reported updated to reflect a change in methodology
as indirect emission sources to avoid double in alignment with industry best practices based
counting by organizations or agencies interested on the availability of more refined sales
in compiling national inventory data. activity data.

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Sustainability process data Environmental data

Certifications
ISO 14001, 50001 and 45001 certified and compliant status from manufacturing facilities
Standards, methodologies, assumptions and calculation
tools used for direct (scope 1) and indirect (scope 2 and 3) GHG emissions: Company-Wide 2024 ISO 14001 ISO 50001 ISO 45001
Certified 56% 4.5% 55%
Compliant 15% 0% 7%
Activity data is mostly tracked using our Environmental Health and Safety
Information System (EHSIS) tool. A small portion of the data is also tracked Energy consumption within the organization
302-1 | RT-EE-130a.1
using templates consistent with the below listed standards.
Consumption by Fuel Type Unit of measure 2023 2022 2021 2017
Energy From Renewable Sources
• The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
Biomass GJ 34,543 38,908 49,172 59,131
• The Greenhouse Gas Protocol: Scope 2 Guidance, An amendment to the GHG Protocol
Ethanol GJ 17,380 4,406   764 2,288
Corporate Standard
Electricity From Renewable Sources GJ 1,043,152 1,064,417 743,039 0
• The Greenhouse Gas Protocol: Technical Guidance for Calculating Scope 3 Emissions
Purchased Stream From
• The Greenhouse Gas Protocol: Scope 3 Evaluator Tool GJ 5,618 0 0 0
Renewable Sources
• Greenhouse Gas Inventory Guidance: Direct fugitive emissions from refrigeration, air conditioning, Subtotal GJ 1,100,693 1,107,731 792,975 61,419
fire suppression and industrial gases Energy from non-renewable sources
• The Climate Registry: General Reporting Protocol Natural Gas GJ 1,510,143 1,744,368 1,670,171 1,606,183
• The Climate Registry: Electric Power Sector (EPS) Protocol Fuel Distilled From Crude Oil
GJ 3,373,499 3,049,517 2,989,660 3,801,458
• U.S. EPA Climate Leaders: Indirect Emissions from Purchases/Sales of Electricity and Steam and Other Fossil Fuels
• U.S. EPA Climate Leaders: Direct Emissions from Stationary Combustion Electricity GJ 1,434,765 1,494,366 1,594,981 2,628,014
Purchased Steam GJ 10,774 20,343 46,899 10,641
• U.S. EPA Climate Leaders: Direct Emissions from Mobile Combustion Sources and DEFRA
Subtotal GJ 6,329,181 6,308,594 6,301,711 8,046,296
• GHG emissions consolidation approach for scopes 1 and 2: Operational control
Grand total GJ 7,429,875 7,416,325 7,094,686 8,107,715
Percentage of Total Electricity From
• Emission factor sources: Renewable Sources
% 42.1% 41.6% 31.8% 0%
- US EPA Emissions Factors for Greenhouse Gas Inventories, 2022 - Scope 1 Stationary and
Mobile Emissions Sources Methodology notes:
- US EPA, eGRID 2022 - US, market- and location-based electricity • The data is tracked using the Environmental Health and Safety • All estimates are based on the best available data at publication and
- National Inventory Report 1990–2018 (Canada) – Canada electricity Information System (EHSIS) tool. Energy consumption is tracked at may change over time. Fiscal year 2022 biomass has been restated to
- International Energy Agency (IEA) Emissions Factors 2022 - rest of world, market- and the facility, group and corporate levels reflect corrected data
• Percentage of total operational spending on energy (most recent • The fuel distilled from crude oil and other fossil fuels category
location-based electricity reporting year): more than zero percent but less than five percent includes gasoline, diesel, propane/LPG/butane, jet fuel and heavy
- DEFRA Conversion Factors 2022 - UK scope 1 and 2 emissions sources • The categories of heating and cooling are not applicable to our fuel oil. Increase in availability of fleet data has led to an increase in
- European Residual Mixes 2021, Association of Issuing Bodies - multiple European countries, data tracking this metric
market-based electricity • The energy sold category is not applicable to our company. • For the first time, in fiscal year 2023, we have verified renewable
Johnson Controls does not sell energy sources for purchased steam
- Comparison of Particulate Emissions from Liquid-Fueled Pool Fires and Fire Whirls at Different
Length Scales, UC Berkeley, March 2021 - heptane
- GWP values taken from: IPCC Fourth Assessment Report (AR4 - 100 years)

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Energy consumption outside the organization Results: emissions

302-2 Direct (scope 1), indirect (scope 2) and other indirect (scope 3) GHG emissions
305-1 | 305-2 | 305-3 | 305-4
Energy Category/Activities Unit of measure 2023 2022 2021 2017
Use of Sold Products GJ 83,508,186 115,665,392 118,567,029 105,850,345 Emissions - Metric Tons CO2e4 2023 2022 2021 2017
Direct (scope 1)
Total GJ 83,508,186 115,665,392 118,567,029 105,850,345
CO2 303,853 300,669 219,329 327,023
Methodology notes:
CH4 51 59 54 59
• Tracking of renewable energy in our value chain is currently outside of our energy accounting scope
• Use of sold products contributes significantly to the organization’s total anticipated energy consumption outside of the organization and is N20 98 143 111 131
deemed material. This value was estimated by modeling the energy usage for a representative sample of product categories and extrapolating HFC1 101,286 109,232 231,817 355,549
for the rest. Starting with fiscal year 2022 data, Silent-Aire and other smaller acquisitions were added to our operational boundary and metrics. Scope 12 405,288 410,103 451,311 682,761
In fiscal year 2023, we made substantive revisions to our scope 3 emissions methodology to better align with industry best practices by utilizing Indirect (Scope 2)
newly available datasets. The data in this table reflects this revised methodology across all years
Market-Based 200,819 213,336 212,918 396,612
Energy intensity Location-Based 308,046 331,839 300,725 400,442
302-3
Scope 1 Plus Market-Based Scope 23 606,107 623,439 664,229 1,079,373
Energy Intensity Unit of Measure 2023 2022 2021 2017 Other Indirect (Scope 3)5
Numerator GJ 7,429,875 7,416,325 7,094,686 8,107,715 Purchased Goods and Services 3,164,000 3,515,000 2,858,000 3,826,000
Denominator Million USD in total net sales 26,793 25,299 23,415 22,661 Capital Goods 680,000 694,000 564,000 1,891,000
Energy Intensity (Ratio) GJ per million USD in total net sales 277 293 303 358 Fuel- and Energy-Related Activities 29,000 33,000 43,000 23,000
Methodology notes: Upstream Transportation and Distribution 173,000 236,000 403,000 460,000
• Scope includes what is under company’s operational control Waste 15,000 15,000 11,000 14,000
• Fiscal year 2022 metrics have been updated to reflect updated metrics for biomass and the company’s fiscal year 2022 total net sales Business Travel 30,000 18,000 9,000 35,000
Employee Commuting 213,000 214,000 215,000 203,000
Reduction of energy consumption
302-4 Use of Products6 173,772,000 222,592,000 224,871,000 238,338,000
End of Llife 2,495,000 2,974,000 4,058,000 4,276,000
Unit of Measure 2023 2022 2021 2017
Scope 3 180,571,000 230,291,000 233,032,000 249,066,000
Total Energy GJ 7,429,875 7,416,325 7,094,686 8,107,715
Biogenic Metric Tons CO2e7 4,313 5,330 4,488 6,680
Total Energy Reductions GJ 677,840 691,390 1,013,029 NA
Grand Total (Scope 1+2+3)8 181,177,107 230,914,439 233,696,229 250,145,373
GHG Intensity8
Methodology notes: 22.6 24.6 28.4 47.6
(Metric Tons C02e per Million USD in Net Sales)
• Metrics reflect energy saved by conservation and efficiency initiatives. Total energy reductions represent reductions against the baseline
year of 2017 1. Category includes manufacturing losses and losses from the use of air-conditioning equipment in our real estate globally. For the use of air-conditioning
• Year-to-year fluctuations are driven by our efforts to reduce energy, but are offset by necessary increases, including increased sales and equipment in our real estate globally, loss intensity per square foot is calculated using actual data from our Building Solutions North America business and
temperature fluctuations extrapolated globally
2. Category considers stationary combustion, mobile combustion and fugitive emissions, including natural gas, propane, diesel, heavy fuel oil, gasoline, jet
Reductions in energy requirements of products and services fuel, butane, wood pellets, heptane and refrigerant losses
302-5 3. We compute both location- and market-based indirect emissions. We use market-based emissions to track our progress towards our reduction targets.
Unit of Measure: Gases used to calculate scope 2 include CO2, CH4 and N2O
Product and Services 2023 2022 2021 4. For fiscal year 2023 scope 1, 2 and 3 data, Apex, an independent third-party assurance provider recognized by CDP, has verified our greenhouse gas
Gigajoules (GJ)
emissions data per ISO 14064-3: Second Edition 2019-04: Greenhouse Gases -- Part 3: Specification with Guidance for the Verification and Validation of
Energy Savings Performance Contracting GJ 18,143,989 18,119,041 13,654,042
Greenhouse Gas Statements. Additionally, fiscal year 2017 scope 3 (use of products) has been restated and verified by Apex
Total GJ 18,143,989 18,119,041 13,654,042 5. In fiscal year 2023 Johnson Controls made substantive revisions to our Scope 3 emissions methodology to better align with industry best practices and
utilize newly available datasets. As a result, we have restated fiscal years 2022, 2021 and 2017. Purchased goods & services and capital goods for the fiscal
year 2017 remain unchanged. Category considers emissions for transportation and distribution losses only
Methodology notes:
6. Category considers emissions from finished HVACR products, including Ducted Systems, Johnson Controls-Hitachi, Chillers (excluding absorption chillers),
• These values are guaranteed energy savings from our active energy-savings performance-contracting project portfolio in the US and Canada
during each reporting year Air Handlers and Industrial Refrigeration Equipment. Product attributes include heating and cooling capacity, heating and cooling efficiency, refrigerant
• Our energy solutions team generates reports for our guaranteed energy savings active during each reporting year, which facilitates generating an charge, and refrigerant GWP. Category excludes parts, Controls, Fire, Security, Silent Aire and sourced products without Johnson Controls branding
annual aggregate total 7. Emissions reported for informational purposes only and are not in scope 1 subtotals or section grand totals
• This metric does not include reductions in energy use from products sold other than those specifically used in performance contracting projects. 8. Considers only scope 1 and scope 2 emissions. Excludes biogenic emissions. Considers the market-based emissions for scope 2 which are calculated using
The reduction in use from products sold is reflected our scope 3 use of sold products as reported in Results: Emissions the market-based approach from the World Resources Institute (WRI) Greenhouse Gas (GHG) Protocol’s Scope 2 Guidance

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Reduction of GHG emissions from internal projects

305-5

Unit of Measure 2023 2022 2021 2017 From our baseline of 2017, we reduced our SOx emissions by 32 percent and NOx emissions by 25 percent. We achieved these reductions even
though, starting with our 2022 metrics, we added the emissions from our acquisition of Silent Aire plus other new manufacturing facilities. This
Total GHG Emissions Metric tons CO2e 606,107 623,439 664,229 1,079,373 added the emissions for 12 new manufacturing facilities to our current metrics, but not to our baseline year.
Total GHG Reductions Metric tons CO2e 473,266 455,934 415,144 NA
• Select items have been verified. Apex reviewed the energy consumption data that is used as primary data to estimate SOx, NOx, volatile organic
Methodology notes: compounds (VOCs) and PM emissions from combustion
• List of GHGs included: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and hydrofluorocarbons (HFC) • Data reported for all emissions and years covers all operationally controlled facilities unless specifically noted
• Total GHG reductions represent reductions against the baseline year of 2017 • Global SOx emissions, NOx emissions and PM emissions are from the combustion of natural gas, propane/LPG, diesel, butane, gasoline and
• As part of the sustainability program, projects designed to reduce GHG emissions are implemented globally at plant level. Actual energy use at biomass from stationary sources. Energy consumption data used for these calculations is compiled using our EHSIS reporting tool, which allows
each plant is tracked and reductions are calculated year over year. In addition, Renewable Energy Certificates for all US manufacturing sites us to collect site-level utility information
and the vast majority of owned or leased offices and warehouse were purchased in fiscal year 2023 • Hazardous air pollutants (HAPs) reported are from the toxic release inventory (TRI) database maintained by the US Environmental Protection
Agency and therefore includes only releases in the United States
Emissions of ozone-depleting substances (ODS) • HAPs and VOCs data is not yet available for 2023. Metrics are based on toxic release inventory (TRI) data, which is reported by calendar year in
305-6 July. The 2022 reported value for VOCs has been restated and the value for HAP is included as 2022 TRI reported data is now available
• Emission factors from EPA AP-42, Fifth Edition, Volume I and the California Air Resources Board were used to estimate emissions from
Unit of Measure 2023 2022 2021 stationary combustion
Purchase of ODS Metric tons of CFC-11 equivalent 0.92 1.92 1.88 • Other annual emissions may include one or more of the following: antimony/antimony compounds; arsenic; chlorofluoromethane;
chromium; cobalt; copper; 1,1-dichloro-1- fluoroethane; 2,2-dichloro-1,1,1-trifluoroethane; diethanolamine; diisocyanates; ethylene glycol;
Methodology notes: lead/lead compounds; manganese; nickel; N-methyl-2-pyrrolidone; propylene; sulfuric acid (acid aerosols); toluene diisocyanate; xylene;
• Data for fiscal year 2021 (0.85 metric tons) and fiscal year 2022 (0.7 metric tons) has been restated to include newly available data and zinc compounds
• This data was collected through our procurement teams accounting for the purchase and usage of the refrigerant R22. All estimates are based on • Dust and persistent organic pollutant (POP) emissions are not considered significant based on our set of operations
the best available data at publication and may change over time
• Within our YORK line of products, we track the use of chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) in the manufacturing of Water and effluent
our building equipment systems, which is the main source of our ozone-depleting substances (ODS). Their related emissions are primarily used 303-1 | 303-2
in developing countries, consistent with the phase-out schedule specified by the Montreal Protocol. Our heating, ventilation and air conditioning
(HVAC) service technicians offer preventive maintenance and predictive diagnostics to prevent the release of ODS while servicing equipment Outside of municipal water, we currently do not have data on other water sources used, including recycling. We are in the process of exploring
containing refrigerants at customer facilities. Although we may use HCFCs when servicing some of our customers’ equipment, we do not report the best approach to obtain more granular water data and we hope to be able to report more information on the results of this analysis in the
that usage since we consider it part of our customers’ activities. We have been engaged in the rapid phasing down of R22 and other CFCs and future. Water conservation and recycling efforts are primarily managed at the facility level, but our focus on water use is increasing as data
HCFCs in accordance with the Montreal Protocol, including seeking alternatives where possible becomes more available.

Water withdrawal and discharge by source

Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air emissions 303-3 | 303-4 | 303-5
305-7
Emissions Types Unit of Measure 2023 2022 2021 2017 Source Unit of Measure 2023 2022 2021
SOx Emissions Kg 6,213 7,711 3,796 9,097 Municipal Water Supplies or Other Water Utilities Megaliters 3,196 3,322 4,172
Kg per million Total Water Withdrawal Megaliters 3,196 3,322 4,222
SOx Intensity 0.26 0.30 0.16 0.4
USD in total net sales Municipal Water Discharge Megaliters 1,439 1,214 1,221
NOx Emissions Kg 152,483 182,043 127,039 202,906
Total Water Discharge Megaliters 1,439 1,214 1,221
Kg per million
NOx Intensity 6.45 7.2 5.43 8.95 Water Consumption Megaliters 1,757 2,108 2,951
USD in total net sales
Particulate Matter Emissions (PM) Kg 17,921 21,302 15,835 22,516
Methodology notes:
Hazardous Air Pollutants (HAP) Kg NA 63,152 54,380 70,861 • Data is sourced from direct measurements (invoices, metered data)
Volatile Organic Compound (VOC) Emissions Kg NA 20,954 24,044 78,462 • Water discharge is taken from utility bills for manufacturing sites where process water is used. For manufacturing sites where process water is
Kg per million not used e.g., sanitary use only, it is assumed that 100 percent of water is discharged
VOC Intensity NA 0.83 1.05 3.46 • Water consumption is defined as water withdrawals minus water discharges
USD in total net sales
• Starting with our 2011 data, Apex, an independent auditor recognized by CDP, audited our water withdrawal. The certificate for this most recent
audit is attached to the GRI Index

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Water use at water-stressed locations

Social data
Source Unit of Measure 2023 2022 2021 2017
Employee benefits
Withdrawal From Water-Stressed 201-3 | 401-2 | 403-6
Megaliters 272 294 314 313
Locations
We offer competitive benefits programs, which we evaluate annually to ensure effectiveness and market competitiveness. The company ensures
Water-stressed locations reflect manufacturing facilities identified as belonging to a water-stressed basin according to the 2021 WRI Aqueduct 3.0 that all employee benefits are locally and globally compliant, as well as market relevant. As employee benefit plans vary significantly between
review of our facility locations. Withdrawals are from direct measurements (invoices, metered data). countries due to different levels of social, tax and legal regulations, our benefits portfolio is primarily country-driven.

In 2023, we launched a benefits study in multiple countries to gather direct feedback from employees on the types of benefits they value most.
Waste by type and disposal method
Insights from this study will be used as we continue to strive to provide valuable benefit programs for our employees.
306-3 | 306-4 | 306-5 RT-EE-150a.1
As a result of our efforts, in fiscal year 2022, three more of our manufacturing facilities were recognized for achieving a zero waste to landfill status.
Healthcare plans Financial benefits and resources Work/life/time away benefits
There are now 26 Johnson Controls Global Products manufacturing sites internally certified as zero landfill. These plants are located in all regions
• Medical, dental and vision coverage • Retirement savings plan 401(k) • Paid vacation and paid holidays
of the world, making environmental sustainability a truly global effort. Overall, Johnson Controls has an 89 percent company-wide diversion rate,
(employee and family) • Defined contribution plan • Paid sick days
including hazardous and non-hazardous waste, and 31 zero landfill sites.
• Prescription drug coverage • Retirement investment guidance • Medical and family leaves of absence
• Health savings account (HSA) • Tuition reimbursement • Bereavement leave
Waste by Type and Disposal Method (Metric Tons) 2023 2022 2017 • Flexible spending account (FSA) • Matching gift program • Parental leave
Non-Hazardous • Dependent care account • Paid time off for employee volunteers
Reuse 357 331 310 Life and accident insurance • Flexible work schemes
Health and wellness resources • Accidental death & dismemberment (AD&D)
Recycling 74,677 74,037 80,973 • Employee assistance program • Life insurance (basic and supplemental) Voluntary benefits
Recovery (Including Energy Recovery) 1,122 956 847 • Wellness/fitness program • Short- and long-term disability • Accident insurance
Incineration 1,272 772 1,603 • On-site fitness/recreation facilities • Auto/home insurance
• Gym discounts Education • Legal insurance
Landfill 9,217 9506 9,202
• Preventative healthcare programs • Tuition reimbursement • Pet insurance
Subtotal (Metric Tons, Non-Hazardous Waste) 86,645 85,602 93,084 • Employee recognition programs • Workforce training, skills and leadership • ID theft insurance
Hazardous development programs • Critical illness insurance
• Mentoring program
Reuse 56 117 27
Recycling 4,570 2,714 3,233
Parental leave
Recovery (including Energy Recovery) 332 945 1,001
401-3
Incineration 1,081 441 421
Landfill 455 866 1,416 2023 2022 2021

Subtotal ((Metric Tons, Hazardous Waste) 6,494 5,083 6,097 Number of male employees who took parental leave 927 674 224

Total waste (Metric tons) 93,140 90,685 99,181 Number of female employees who took maternity leave 156 183 272
Rate of female employees who returned to work after leave 100% 96% 96%
Methodology notes: Rate of male employees who returned to work after leave 100% 97% 98%
• Our contracts with waste disposal contractors require them to provide the data and documentation of each pick-up from our sites matched
to the GRI categories. This data is entered into our global environmental health and safety tracking system on a monthly basis by site personnel The numbers provided include all US employees except those who may have separate benefits due to union contracts.
at each location The return-to-work rate value only includes employees who worked more than two weeks after their return.
• Waste values represent waste from manufacturing sites, which is the majority of all waste generated by the company. All waste can be
considered handled off site. Fiscal year 2022 waste data has been restated to reflect reporting improvements
• Recycling data includes materials recycled or composted

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Diversity of employees Ratio of percentage increase in annual total compensation

405-1 2-21
2023 2022 2021 Location 2023 Ratio 2022 Ratio 2021 Ratio
Total Employees 99,095 99,000 96,150 Canada 0.63 1.07 0.80
Percent of Total Employees China 0.39 0.58 0.50
Male 77% 76% 77% India 0.86 0.33 0.97
Female 23% 24% 23% Mexico 0.44 1.12 0.43
Managers - female 21% 20% 19% United Kingdom 0.60 0.40 1.13
Minorities 32% 30% 26% United States 1.33 0.90 3.19
Managers - minorities 22% 21% 18%
The ratio of the annual total compensation percentage increase of the highest-paid individual in each country to the median annual total
Under 30 years old 20% 18% 17% compensation percentage increase for salaried employees in the same country is calculated using the annual base salary performance increase
30 – 50 years old 56% 55% 58% for full-time employees.
Over 50 years old 24% 27% 25%

Gender and age groups data reflects full-time global employee population. Minority data reflects US population only. Minority is defined using race/
ethnicity groups as defined by US federal agencies for employment purposes. Manager is defined as having at least one direct report.
New employee hires and employee turnover
Ratio of standard entry-level wage by gender compared to local minimum wage 401-1
202-1
Total Workforce 2023 2022 2021
Ratio of Employee Entry-Level Wages
Compared to the Minimum Wage at Gender 2023 Ratio 2022 Ratio 2021 Ratio New employee hires Total Rate Total Rate Total Rate
Significant Locations of Operations All age groups 25,665 23,700 22,420
Canada Men 1.96 1.97 2.10 Global (Excludes Hires From Under 30 years old 10,579 41% 9,700 41% 8,500 38%
Canada Women 1.40 1.46 1.59 Acquisition/HAF) 30 – 50 years old 9,831 38% 11,500 48% 11,120 50%
China Men 1.40 2.15 2.15
Over 50 years old 5,255 20% 2,500 11% 2,800 12%
China Women 1.42 1.74 1.56
North America 11,750 46% 9,500 40% 11,020 49%
India Men 5.14 4.99 4.82
India Women 4.85 4.76 4.78 Asia 4,723 18% 4,600 20% 3,770 17%
Mexico Men 1.99 1.93 1.51 Europe 2,521 10% 2,500 10% 1,790 8%
Mexico Women 1.86 1.78 1.26 Latin America 6,347 25% 6,800 29% 5,550 25%
United Kingdom Men 1.42 1.76 0.98 Middle East and Africa 324 1% 300 1% 290 1%
United Kingdom Women 1.08 1.30 0.94 Female 6,621 26% 6,300 27% 5,340 24%
US Men 2.23 2.07 2.00 Male 19,044 74% 17,400 73% 17,080 76%
US Women 2.25 2.07 1.94
Employee Turnover Total Rate Total Rate Total Rate
The above numbers represent 70 percent of our global employees. All age groups 14,334 14% 15,510 16% 12,161 13%
Under 30 years old 5,385 26% 6,007 31% 4,199 26%
Annual total compensation ratio Global Voluntary Turnover1
2-21 30 – 50 years old 6,439 14% 6,996 15% 6,468 12%
Location 2023 Ratio 2022 Ratio 2021 Ratio Over 50 years old 2,319 7% 2,507 8% 1,492 6%
Canada 4.03 4.10 4.27 North America 6,439 15% 6,866 17% 5,757 15%
China 35.60 37.21 39.25 Asia 2,758 12% 3,018 14% 2,218 11%
India 32.67 33.81 25.00 Europe 1,484 9% 1,738 11% 1,346 8%
Mexico 26.84 36.73 38.73 Latin America 3,442 21% 3,629 23% 2,602 17%
United Kingdom 9.47 9.85 8.95 Middle East and Africa 211 10% 259 11% 238 9%
United States 6.23 6.80 6.88
Female 3,726 16% 3,953 17% 3,214 15%
The ratio of the annual total compensation for the organization’s highest-paid individual in each country to the median annual total compensation for Male 10,608 14% 11,555 15% 8,945 12%
salaried employees within the same country is calculated using the annual base salary compensation for full-time employees.
1. Includes global voluntary turnover, including retirement, for regular full- and part-time employees.

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Employees Freedom of association and collective bargaining

2-7 | 2-8 407-1 | 2-30
Full-Time and Part-Time There are no operations within Johnson Controls that have been identified as being at significant risk for prohibiting employees from exercising the
2023 2022 2021 right to freedom of association or collective bargaining.
Employees by Gender
Full-Time – Male 75,933 76,000 74,240
Full-Time – Female 23,162 23,000 21,910 Freedom of Association and Collective Bargaining
Total Full-Time 99,095 99,000 96,150 Collective Bargaining Agreements 2023
Part-Time – Male 307 400 460 Percentage of Total Employees Covered by Collective
Part-Time – Female 560 600 390 22
Bargaining Agreements
Total Part-Time 867 1,000 850
*Percentage of employees covered by collective bargaining agreements globally.
Excludes employees from non-consolidated joint ventures, divestitures effective on or before end of fiscal year,
contingent workers and temporary employees.
2023 2022 2021
Training and education
Employees by Region Male Female Male Female Male Female Average hours of training per year per employee
North America 33,112 9,012 32,000 9,000 32,460 8,540 404-1
APAC 17,316 5,422 17,500 5,400 16,820 4,780
Europe 13,447 3,749 13,500 4,000 12,710 3,440 Employee Category 2023
Latin America 10,443 5,291 11,000 5,500 10,440 5,260 CEO 2.58
Middle East and Africa 1,922 248 2,000 100 2,270 280 President/Executive Vice-President 4.22
Vice-President/General Manager 9.79
Permanent Employees and Temporary Workers by Gender 2023 2022 2021 Director 14.14
Indefinite or Permanent Contract – Male 75,559 75,400 74,260 Manager 16.54
Supervisor 10.35
Indefinite or Permanent Contract – Female 23,369 23,600 22,070
Individual Contributor - Professional 15.66
Total Indefinite or Permanent 98,928 99,000 96,330
Individual Contributor - Support 15.41
Fixed-Term or Temporary Contract – Male 681 600 440
Overall Average 15.43
Fixed-Term or Temporary Contract – Female 353 400 230
Total fixed-term or temporary contract 1,034 1,000 670
Percentage of employees receiving regular performance and career development reviews
Ratio of basic salary and remuneration of women to men, by significant locations of operations 404-3
405-2 2023 2022 2021
Location 2023 Ratio 2022 Ratio 2021 Ratio Male 95 96 97
Canada 0.96 0.96 0.95 Female 95 96 97
China 0.97 0.96 0.98 Total 95 96 97

India 0.97 0.94 0.93

Data represents percentage of salaried employees receiving performance reviews. All managers are expected to conduct employee reviews.
Mexico 0.96 0.96 0.97
United Kingdom 0.93 0.93 0.97 Workers participation, consultation and communication on occupational health and safety
United States 0.97 0.97 0.96 403-4
Total Worldwide 0.99 0.94 0.96

Percentage of the total workforce represented in formal joint

Incidents of discrimination and corrective actions taken Status for all incidents: Over 75 percent
management-worker health and safety committees:
406-1 • Reviewed
• Remediation plan being implemented Johnson Controls maintains and requires health and safety committees
2023 Explanation of the level(s) at which each formal joint
• Remediation plan implemented at the facility, region, business unit and enterprise levels. For a more
management-worker health and safety committee
Total Number of Incidents 133 • Results reviewed through routine internal management review process complete description of the company’s health and safety committees,
typically operates within the organization:
• Incident no longer subject to attention please refer to the Health and Safety section of this report.

Corrective actions taken: The numbers above are a tally of all allegations of discrimination filed through a legal action, formal complaint or the
Johnson Controls Integrity Helpline. All incidents were investigated and corrective actions were implemented to prevent any reoccurrence.
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Overview Global sustainability How we work Data
and solutions emissions employee experience

Health and safety

2023
403-9 | 403-10
Percentage of significant product or service categories that are covered by and assessed for compliance with company
100%
procedures for product and service information and labeling
Total Global
Incident Category 2023 2022 2021 2017
Workforce

Work-related fatalities 1 1 0 0 417-2

High-Consequence
Injuries Work-related fatality rate 0.001 0.001 0.00 0.00 Johnson Controls did not have any material or substantial incidents of non-compliance with product and service information and labeling regulations
Total recordable incidents (TRI) 460 490 441 718 or voluntary codes. Our products are compliant with applicable regulations, codes and standards that require specific information be placed in our
Total Recordable
product service and maintenance information and manuals regarding safety. Many of our products are also listed by Nationally Recognized Test Labs
Incidents Total recordable incident rate (TRIR) 0.37 0.41 0.38 0.57 (NRTL), where these requirements for information in the manuals are verified for presence.
Percent change in total recordable
Actual -35.0% -28.7% -32.6% Baseline year 417-3
incident rate (FY2017 baseline)
2025 sustainability strategy goal, annual Johnson Controls did not have any incidents of non-compliance with marketing communications regulations or voluntary codes.
2025 Sustainability
percent change in total recordable -20.2% -16.6% -13.4% 0% (baseline year)
Strategy Goal
incident rate (FY2017 baseline)
Supplier sustainability - tracking and accountability
Total lost time incidents (LTI) 148 177 155 309
Lost Time Incidents 308-1 | 308-2 | 414-1 | 414-2
Total lost time incident rate (LTIR) 0.12 0.15 0.14 0.25
2023 2022 2021
Total first-aid injuries 2,310 1,858 1,630 1,349
First-Aid Injuries Percentage (%) of New Suppliers That Were
100% 100% 100%
Total first-aid injury rates 1.86 1.54 1.42 1.07 Screened Using Social Criteria

Near Miss, Unsafe Acts, Total NM/UA/UC reports 75,896 60,777 39,885 12,596
Percentage (%) of New Suppliers That Were
Unsafe Conditions Total NM/UA/UC rate 59.62 49.20 33.58 9.97 100% 100% 100%
Screened Using Environmental Criteria

• To calculate these figures, we follow US OSHA injury classifications globally

Each business unit tracks the following metrics in relation to our suppliers:
• Metrics include employees and agency/temp workers, but exclude third-party subcontractors, except for near miss, unsafe acts,
• Percentage of total suppliers that refuse to abide by the Johnson Controls Code of Ethics or equivalent
unsafe conditions metrics
• Percentage of direct material suppliers identified for auditing
• Data is per 200,000 hours and, starting with fiscal year 2017 data, reflects our company footprint as of the end of fiscal year 2023
• Percentage of direct material suppliers audited by Johnson Controls or third party
• Work hours used for rate calculations are either actual (e.g., from time-keeping systems) or estimated (e.g., based on headcount) work hours
• Number and type of suppliers terminated due to social and environmental performance issues
• Historic data is restated to reflect the performance of current Johnson Controls operations
• Health and safety metrics as of November 6, 2023
Governance data
Product safety Direct economic value generated and distributed
Product labeling 201-1
417-1
Fiscal year 2023
Currency: Value
Requirements for Product and Service Information and Labeling Required for Product Service Labeling Value Generated Value Retained
Million USD Distributed
Payments to
Wages and Payments to Community (Generated
The sourcing of components of the product or service Yes Fiscal Year 2023 Revenues Operating costs providers
benefits government investment less distributed)
of capital
Content, particularly with regard to substances that might produce Company Level 26,793 (17,091) (7,129) (1,261) (430) (12.7) 869
Yes
an environment or social impact
Through philanthropy and employee volunteer programs, we improve and strengthen the hundreds of communities we call home. Johnson Controls
Safe use of the product or service Yes contributes millions of dollars annually and our employees give freely of their time, skills and contributions. The community investment number
above includes corporate and foundation philanthropic contributions of more than $12.7 million and employee giving in excess of $2.9 million.
Disposal of the product and environmental/social impacts Yes

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 Sustainable products Greenhouse gas Social impact and
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and solutions emissions employee experience

Committees governing environmental, social and governance topics

2-9

Number of Non-Executive
Name of Committee Committee Function
Directors
Countries of operation Audit Committee Audit / accounting; risk management; ethics issues 4
2-1 Compensation and Talent
Remuneration / compensation 3
Development Committee
Our 99,962 worldwide employees Nomination; corp. social responsibility, corp. citizenship,
serve a wide range of customers from Governance and Sustainability Committee sustainable development; health and safety; environmental 4
over 1,350 locations. The Johnson issues; risk management; community and public affairs
Controls location finder helps our Full Board of Directors Risk management 11
customers find the facility that can
best serve their needs.
We have facilities located in the See page six of Johnson Controls 2024 Notice and Proxy Statement.
following countries: Executive leadership team responsibility for corporate social responsibility and sustainability
2-9 | 2-12 | 2-13 | 2-17 | 3-1
Location of operations
As of the Annual Organizational Level (From the Board
Argentina Colombia Italy Philippines Switzerland Name Position or Title
Meeting of March 2024 and CEO) and Reporting Line
Australia Costa Rica Japan Poland Thailand
Overall Responsibility
Austria Czech Republic Kazakhstan Portugal Turkey for Corporate Social
George Oliver Chairman and Chief Executive Officer 0 - serves on Board of Directors
Bahrain Denmark Kuwait Qatar Ukraine Responsibility and
Belgium Finland Luxembourg Republic of Korea United Arab Emirates Sustainability
Brazil France Malaysia Romania United Kingdom Diversity and Executive Vice President and Chief Human
Marlon Sullivan 1 - reports to Chairman and CEO
Employment Equity Resources Officer
Bulgaria Germany Mexico Russia United States of America
Community and Public Vice President and Chief Sustainability and External
Canada Hungary Netherlands Saudi Arabia Uruguay Katie McGinty 1 - reports to Chairman and CEO
Relations Relations Officer
Chile India New Zealand Singapore Uzbekistan
Vice President and Chief Sustainability and External
China Indonesia Norway Slovakia Vietnam Environmental Issues Katie McGinty 1 - reports to Chairman and CEO
Relations Officer
China-Hong Kong (SAR) Ireland Oman South Africa
Health and Safety John Donofrio Executive Vice President, General Counsel 1 - reports to Chairman and CEO
China-Macau (SAR) Isle of Man Panama Spain
Chinese Taiwan Israel Peru Sweden
Risk Management John Donofrio Executive Vice President, General Counsel 1 - reports to Chairman and CEO

Supply Chain
As of March 7, 2022, we suspended our business operations in Russia. We committed to fulfilling existing contractual obligations to the extent Terry Nadeau Vice President, Chief Procurement Officer 1 – reports to Chairman and CEO
Social Responsibility
possible and in full compliance with sanctions, but we have not accepted, nor will we accept, new business or orders.
2 - reports to EVP and General Counsel,
Compliance/Ethics Issues Mara Murphy Vice President, Chief Ethics and Compliance Officer who reports to Chairman and CEO, and
Diversity of governance bodies reports to Audit Committee
405-1
2 - reports to EVP and General Counsel,
Human Rights Issues
Board of Minority or Vulnerable Tammara Lovett Vice President, Chief Labor and Employee Counsel who reports to Chairman and CEO, and
Male Female Age Groups and Labor Issues
Directors Group reports to Audit Committee
(As of % <30 years % 30 – 60 % > 60 years
Annual Number Percent Number Percent Number Percent
old years old old Political contributions
Meeting in
8 66% 4 33% 4 33% 0 33% 66% 415-1
March 2024)
Currency: USD 2023 2022 2021
Board diversity (minority or vulnerable group) includes racial, ethnic and LGBTQIA+. Note that these metrics represent our Board of Directors
following the March 2024 annual general meeting of shareholders. PAC activity country: US $205,000 $230,650 $179,550

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 Sustainable products Greenhouse gas Social impact and
Overview Global sustainability How we work Data
and solutions emissions employee experience

Johnson Controls International PLC Cautionary Statement Regarding Forward-Looking Statements

Johnson Controls International PLC has made statements in this Controls’ actual results to differ materially from those expressed and the establishment of science-based targets to reduce
report that are forward-looking and therefore are subject to risks or implied by such forward-looking statements. A detailed carbon emissions from Johnson Controls operations and the
and uncertainties. All statements in this document other than discussion of risks related to Johnson Controls’ business is operations of its customers. Although Johnson Controls intends
statements of historical fact are, or could be, “forward-looking included in the section entitled Risk Factors in Johnson to meet these commitments, it may be required to expend
statements” within the meaning of the Private Securities Litigation Controls’ Annual Report on Form 10-K for the 2023 fiscal year significant resources to do so, which could increase operational
Reform Act of 1995. In this communication, statements filed with the SEC on December 14, 2023, which is available costs. Further, there can be no assurance of the extent to which
regarding Johnson Controls’ purpose, ambitions, aims, at www.sec.gov and www.johnsoncontrols.com under the any of these commitments will be achieved, or that any future
commitments, targets, plans, and objectives, environmental, Investors tab. The description of certain of these risks is investments Johnson Controls makes in furtherance of achieving
health, and safety data, social data as relates to employee supplemented in Item 1A of Part II of Johnson Controls’ such commitments will meet external expectations or any binding
metrics, social practices, employee engagement, recruiting, subsequently filed Quarterly Reports on Form 10-Q. or non-binding legal standards regarding environmental social or
learning and development, and community engagement programs, Shareholders, potential investors and others should consider corporate responsibility performance. Moreover, Johnson Controls
future sustainability and corporate social responsibility goals, these factors in evaluating the forward-looking statements may determine that it is in the best interest of Johnson Controls
targets and performance, future financial position, sales, costs, and should not place undue reliance on such statements. and its stockholders to prioritize other business, social,
earnings, cash flows, other measures of results of operations, The forward-looking statements included in this communication governance or sustainable investments over the achievement
synergies and integration opportunities, capital expenditures and are made only as of the date of this document, unless otherwise of these commitments based on economic, regulatory and
debt levels are forward-looking statements. Words such as “may,” specified, and, except as required by law, Johnson Controls social factors, business strategy or pressure from investors,
“will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” assumes no obligation, and disclaims any obligation, to update activist groups or other stakeholders. Johnson Controls ability
“should,” “forecast,” “project” or “plan” and terms of similar such statements to reflect events or circumstances occurring to achieve its public environmental, social and corporate
meaning are also generally intended to identify forward-looking after the date of this communication. responsibility commitments may also be negatively impacted
statements. However, the absence of these words does not mean by one or more of the risks included in the section entitled
that a statement is not forward-looking. Johnson Controls In addition, Johnson Controls has made several public Risk Factors in Johnson Controls’ Annual Report on Form
cautions that these statements are subject to numerous important commitments regarding environmental, social and corporate 10-K for the 2022 fiscal year filed with the SEC, as updated
risks, uncertainties, assumptions and other factors, some of which responsibility matters, including, among others, commitments by any subsequently filed Quarterly Report on Form 10-Q or
are beyond Johnson Controls’ control, that could cause Johnson to achieve net zero Scope 1 and 2 carbon emissions by 2040 Current Report on Form 8-K.

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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 nearly 140 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 or follow us @johnsoncontrols.

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