United Technologies 2008 Annual Report Download - page 32

30 United Technologies Corporation
Focus Areas
Corporate Responsibility
Governance
The aim of governance at UTC is an ethical culture in which 100 percent compliance with
laws and regulations is standard. During 2008, our 13 member Board of Directors included 11
independent members. Each board committee included independent directors and four com-
mittees were fully independent. UTC’s Code of Ethics, created in 1990 and relaunched in 2006,
is the foundation of our culture. In 2008, the Code was amended by UTC’s Board of Directors
to include a policy on citizenship and human rights to reaffirm UTC’s commitment to corporate
responsibility. Implemented in 1986, UTC’s Ombudsman/DIALOG program allows employees
to raise questions and concerns confidentially. Since then, 85,342 inquiries have been sub-
mitted and reviewed. Over the past five years, approximately 80 percent of inquiries requested
change, and about half have resulted in change. Additional information on UTC’s Board of
Directors, including committees and members, UTC’s political action committee and our
Code of Ethics is available on our Web site.
Environment
UTC believes climate change is a critical concern. We focus on our operations, the perform-
ance of our suppliers and our products in use. Internally, we have set aggressive goals for
reduced CO2equivalent emissions and water use, and have achieved reductions of 11 percent
on both metrics from a 2006 baseline. Longer term, we have reduced base energy use by 22
percent and water use by 50 percent since 1997. In 2008, we initiated a third party assessment
of our EH&S data collection and reporting program. With a worldwide real estate portfolio of
more than 100 million square feet, we are committed to designing and building new facilities
with the smallest possible footprint. As of year-end 2008, UTC has one facility certified by the
U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating
system. Another 18 registered projects are in the planning, construction or completion phase,
including four in final certification review. More information on UTC’s commitment to the
environment is available on our Web site.
Products
UTC’s products bring energy efficiency and conservation to the building systems and aerospace
industries. Our fuel cells have been in use for 50 years and today power buses, industrial and
retail facilities, and skyscrapers around the world. UTC also manufactures combined heat and
power technology and geothermal systems, which tap previously unusable geothermal reserves
for renewable and continuously available power. Carrier was chosen in 2008 as a preferred
supplier of the Clinton Climate Initiative (CCI), becoming the first heating, ventilation
and air-conditioning company to sign a Memorandum of Understanding with the CCI for
energy efficient products. Based on more than 20 years of research and development,
Pratt & Whitney’s PurePower PW1000G engine with Geared Turbofan technology is expected to
reduce noise by 50 percent, fuel consumption by more than 12 percent and achieve a double-digit
reduction in emissions and operating costs. More information on energy efficient products made
by UTC companies and our work to reduce materials of concern is available on our Web site.
Customers and Suppliers
UTC serves customers primarily in two global industries: aerospace and building systems.
Our aerospace customers include governments, aircraft manufacturers and airlines. We
serve military and civil government customers in dozens of countries. In the United States,
this includes all branches of the military, NASA and the Department of Homeland Security.
Seventeen percent of UTC’s business comes from government contracts and we only sell
military equipment as allowed by goverment authorities. Our building systems customers
include building owners and managers, contractors and property developers. UTC’s supply
chain includes more than 50,000 companies, and in 2008, we spent more than $30 billion on
procurement. UTC actively seeks competitive and innovative small and diverse businesses. In
2008, UTC spent more than $950 million with diverse suppliers, up from $770 million in 2007.
More information on UTC’s commitment to customer satisfaction, our supply chain, supplier
diversity and our supplier EH&S expectations is available on our Web site.
People
UTC is committed to treating employees fairly, respecting their interests and providing
safe working conditions and open communications. Our Code of Ethics is our guide to
delivering on these commitments; it outlines expectations and holds every employee
accountable. An injury-free workplace is our goal; however, inherent risk in our industrial
settings continues to present challenges. We investigate each serious injury and occupational