Region 14 Education Service Center (ESC)
Contract # 159051
for
HVAC & BUILDING CONTROL SYSTEMS, EQUIPMENT,
INSTALLATION, AND RELATED PRODUCTS & SERVICES
with
CARRIER CORPORATION
Effective: January 1, 2025
The following documents comprise the executed contract between the
Region 14 Education Service Center and Carrier Corporation, effective
January 1, 2025:
I. Vendor Signature Form
II. Region 14 ESC Award Letter
III. Supplier’s Response to the RFP
IV. Request for Proposal and Any Addenda, incorporated by
reference
VI. SIGNATURE FORM
A response to this solicitation is an offer to contract with Region 14 ESC based upon the terms,
conditions, scope of work, and specifications contained in this request. A solicitation does not
become a contract until it is accepted by Region 14 ESC. The prospective supplier must submit
a signed Signature Form with the response thus, eliminating the need for a formal signing process.
A contract award letter issued by Region 14 ESC is the counter-signature document establishing
acceptance of the contract.
The undersigned hereby proposes and agrees to furnish goods and/or services in strict
compliance with the terms, specifications and conditions at the prices proposed within response
unless conspicuously noted by the supplier following the requirements of Deviations and
Exceptions section in the Instructions to Suppliers. The undersigned further certifies that he/she
is an officer of the company and has authority to negotiate and bind the company named below
and has not prepared this response in collusion with any other supplier and that the contents of
this proposal as to prices, terms or conditions of this response have not been communicated by
the undersigned nor by any employee or agent to any person engaged in this type of business
prior to the official opening of this proposal.
Prices are guaranteed for 120 days.
Carrier Corporation
____________________________________________________________________________
Company Name
13995 Pasteur Blvd
____________________________________________________________________________
Address
Palm Beach Gardens FL 33418
____________________________________________________________________________
City State Zip
1-501-529-9688
___________________________________ N/A
___________________________________
Telephone Number Fax Number
joseph.e.ison@carrier.com
____________________________________________________________________________
Email Address
Joe Ison
___________________________________ Strategic Accounts Manager
___________________________________
Printed Name Position
____________________________________________________________________________
Authorized Signature
Version April 10, 2024
Docusign Envelope ID: 9BDB27F5-5EF5-4642-83A5-ED244A9DFF08
Region XIV Education Service Center
1850 Highway 351
Abilene, TX 79601-4750
325-675-8600
FAX 325-675-8659
December 20, 2024
Mr. Joe Ison
Strategic Accounts Manager
Carrier Corporation
13995 Pasteur Blvd
Palm Beach Gardens, FL 33418
Sent via email to: joseph.e.ison@carrier.com
Re: Award of Contract #159051, HVAC and Building Control Systems, Equipment, Installation, and
Related Products and Services
Dear Mr. Ison:
Region 14 Education Service Center is happy to announce that Carrier Corporation has been
awarded Contract #159051 based on the proposal submitted to Region 14 ESC in response to RFP
24-S850, HVAC and Building Control Systems, Equipment, Installation, and Related Products and
Services. As stated in the RFP, Article VI. Signature Form, this contract award letter is the
countersignature to Carrier Corporation’s response and provides Region 14’s acceptance of the
response and establishes the contract.
The contract is effective January 1, 2025. The contract may be renewed in accordance with the
contract terms and conditions.
We look forward to a long and successful partnership.
If you have any questions or concerns, feel free to contact me at (325) 675-8600.
Sincerely,
Emily Jeffrey
Region 14, Chief Financial Officer
Carrier Corporation
13995 Pasteur Blvd
Palm Beach Gardens, FL 33418
November 7, 2024
Region 14 Education Service Center
RFP for HVAC & Building Control Systems, Equipment, Installation & Related Products &
Services - On behalf of Omnia Partners, Public Sector, Inc.
Carrier would like to thank Region 14 ESC & Omnia Partners for allowing us to participate in
this RFP solicitation. We are looking forward to the continuation of our existing relationship
for the next five years.
Carrier has been very pleased with the overwhelming support that the Omnia Partners
team has provided us as we navigate and grow the opportunity it has provided us over the
last year. Carrier’s entire management team has embraced the contract and are very
excited about the future of the partnership.
Please feel free to contact us at any time with questions or clarifications regarding our
response.
Thank you
Joe Ison
Strategic Accounts Manager, Services
Joseph.e.ison@carrier.com
501-529-9688
Region 14 Education Service Center RFP 24-S850 for HVAC and Building Control Systems,
Equipment, Installation and Related Products and Services
Bid Clarifications, Exceptions and/or Deviations to the “Master Agreement” and Requirements
for National Cooperative Contract to Be Administered by OMNIA Partners (Exhibit B)
Carrier Corporation’s (“Carrier”) agreement to indemnify, defend and hold harmless is limited to
third party claims due to personal injury or property damage to the proportionate extent caused by
the negligent acts or omissions of Carrier, its employees, agents and subcontractors only.
Certificates of insurance notifications will be per policy provisions.
No government procurement regulations, such as Buy American, FARs or DFARs, shall apply to this
Agreement except those regulations expressly accepted in writing by Carrier prior to order, on an
order by order basis.
Under no circumstances shall Carrier be liable for any indirect, incidental, special, exemplary,
punitive, liquidated, or consequential damages, including without limitation loss of profit, loss of
revenue, loss of use of equipment or facilities, or economic damages, whether based on strict
liability, negligence or any other cause or action. Carrier’s maximum liability for any reason (except
for personal injuries or property damage) shall consist of the refunding of all moneys paid to Carrier
under the relevant order.
This document shall supersede any conflicting terms.
Region 14 ESC Solicitation RFP 24-S850 – Omnia Partners
RFP for HVAC and Building Control Systems, Equipment, Installation and Related Products
& Services
Appendix B – Supplier Response
3.1 Company
1. History - Carrier Corporation is an American multinational heating, ventilation & air
conditioning (HVAC) and refrigeration equipment corporation based in Palm Beach
Gardens, FL. Carrier was founded in 1915 as an independent company
manufacturing and distributing HVAC systems, and has since expanded to include
manufacturing commercial refrigeration and food service equipment.
As of 2022, it was a $20.4 billion company with over 52,000 employees serving
customers in 160 countries on six continents.
Carrier was acquired by United Technologies in 1979, but it was spun o[ as an
independent company 41 years later in 2020
2. Carrier employees over 200 sales persons
3. Carrier has Service and Equipment (Carrier owned or Representative/Distributors)
in all 50 states. Carrier Corp HQ o[ice is located in Palm Beach Gardens, Florida
4. Annual Sales – see attached Annual Reports for 2021, 2022, 2023 and Proxy for
2024. DUNS – 00-131-7072, All financial information available here -
https://ir.carrier.com
5. Green initiatives – see attached Carrier Sustainability Report
6. Diversity programs - We work hard to build a culture where all employees are valued
and everyone feels included. We have a robust talent acquisition process to attract
talent from the diverse, global marketplace, and we foster an inclusive culture that
drives employee engagement, retention, teamwork and innovation. We also
contribute to the communities where we live and do business by actively partnering
with community and philanthropic organizations locally and nationally. Carrier is
committed to a workplace that is truly and genuinely inclusive, one that inspires and
encourages everyone to bring their authentic selves to work, every single day. Our
ultimate goal is simple – we want each and every Carrier employee to feel like
they _belong. As a global company we seek to recruit, develop and promote our
employees around the world valuing cultural di[erences, varied perspectives,
background and experiences. We believe inclusion and diversity is a source of
innovation. Link to Carrier Inclusion & Diversity -
https://www.corporate.carrier.com/corporate-responsibility/social-impact/our-
employees/
7. Certifications – see RFP document
8. Subcontractors & A[iliates – Carrier employees a large number of subcontractors
across the country – many of those fall into the categories of Veteran Owned,
Women Owned, Minority Owned and other classifications. Each project stands on
its own & meets any requirements set out by the end user.
9. Di[erentiation – Carrier Global Corporation di[erentiates itself from competitors in
several ways, including: Innovation - Carrier is known for being a leader in inventing
new technologies and industries. They have increased their research and
development investment to encourage risk-taking and innovation. Sustainability -
Carrier is committed to making the world more sustainable and comfortable. They
have high-e[iciency refrigerant products that have helped customers avoid millions
of metric tons of greenhouse gas emissions. Customer focus - Carrier puts the
customer at the center of everything they do. They have high reliability and customer
satisfaction ratings, and readily available replacement and repair parts. Values -
Carrier's values include respect, integrity, inclusion, innovation, and
excellence. They have invested in global people programs to create an inclusive
workplace. Operational excellence - Carrier uses a set of tools to foster
competency development and a continuous improvement culture.
10. Carrier has never filed bankruptcy – any legal proceedings are Company Private
11. Felony convictions – Carrier Corp is a publicly held organization
3.2 Distribution, Logistic
A. Carrier has all of its available HVAC, Building Automation, Energy Services, and Data
Center management products & services included in this RFP proposal. All of those
products can be found at the following web links.
1. Carrier.com
2. Automatedlogic.com
3. Noresco.com
4. Riello.com
5. Nlyte.com
B. Distribution, Carrier utilizes a number of methods to distribute its products across
the country and the world. Some products are shipped directly from Carriers various
manufacturing locations & others are stock in distribution locations throughout the
country. All 50 states are covered with this RFP.
C. How participating agencies receive their master agreement pricing. Carrier provides
extensive training to all sales persons that utilize our purchasing cooperatives. In addition,
the pricing matrices are built into our factory pricing tools for both services and equipment.
All pricing is available upon request from any participating member of the cooperative.
D. Other companies involved in getting products to the end user member – Carrier utilizes
factory owned o[ices, distributors and representatives for the purchase of Carrier HVAC
equipment – all of these o[ices receive the cooperative training mentioned previously. All
Carrier Services o[ices are wholly owned by Carrier Corporation.
E. Number & size of distribution facilities. Carrier has service personnel & o[ices in all 50
states. Carrier Equipment has either wholly owned o[ices or Distributors/Representatives
in all 50 states. Several states have multiple locations per state.
3.3 Marketing & Sales
A. Portions to not be made public facing – Carrier would like its pricing matrix to be
available to end user members only – upon request. As opposed to be publicly facing on
the Omnia Partners website.
B. Marketing plans – 90 day plan from Award Date
1. Executive Leadership – Carrier Executive Leadership is and has been very
engaged & supportive of purchasing cooperative usage for a number of years.
2. Training & Education – Carrier is now and has been for several years training its
field sales team on purchasing cooperative usage – this will continue into the foreseeable
future.
C. Detailed 90 day marketing plan. A detailed marketing plan will be provided upon award
of this contract. Carrier is already engaged in a number of marketing activities with its
existing Omnia Partners contract including but not limited to online promotions,
Omnia/Carrier web “splash” page, printed materials for field o[ices, etc. All of the items
listed as i, ii, iii, iv, v, vi, vii, vii are already being utilized or are in the FY25 Carrier general
marketing plan.
D. Transitioning existing Public Agency customers to the Omnia Partners agreement.
Carrier currently has several purchasing cooperative agreements including TIPS,
Sourcewell, AEPA, E&I and a small number of “local” cooperatives. Carrier has been
positioning our existing Omnia Partners contract as the lead contract and the others as a
backup. Carriers FY 25 plan is to eliminate at least two of the existing major cooperatives &
focus moving our existing end user customers to the Omnia Partners contract.
E. Carrier logo usage – acknowledged, use to be permitted within the Carrier Corporation
guidelines – to be provided upon request.
F. Proactive promotion of Carriers o[erings to end users & leads provided by Omnia
Partners. Carrier is currently very involved in these very things with our existing Omnia
Partners contract. All things listed as i, ii, iii & iv are currently being communicated
G. Sales team training – Carrier currently maintains a constant training schedule for all
sales team members across North America. All items listed as i, ii, iii, & iv are being
communicated to the Carrier sales teams.
H. Responsible persons
Executive support - Joe Ison, Strategic Accounts Manager, joseph.e.ison@carrier.com, 501-
529-9688
Marketing – Stephanie Sarrantonio, Associate Director – North American Marketing,
stephanie.sarrantonio@carrier.com, 704-605-7410
Sales – Joe Ison, Strategic Accounts Manager, joseph.e.ison@carrier.com, 501-529-9688
Sales Support – Alex Relf, Strategic Accounts Sales Support, alex.relf@carrier.com, 704-
607-9491
Financial Reporting & Accounts Payable – Delanie Usiadek, Strategic Accounts Sales
Specialist, delanie.usiadek@carrier.com, 561-236-3470
Contracts – Alpay Turker, Contracts Manager, alpay.turker@carrier.com
I.National sales force structure. Carrier HVAC Equipment goes to market via wholly owned
o[ices & distribution/representative networks across North America – the leader of all
applied commercial Carrier HVAC equipment for North America is Chirag Baijal,
chirag.baijal@carrier.com. Carrier Commercial Services are all Carrier employees across
North America – the leader for this team is Jay Hoarell, jay.hoarell@carrier.com
J. Management of the overall national program. As noted above, Carrier maintains a
constant pace of training for the purchasing cooperatives across North America. A ‘top
down’ approach is used by sponsorship of the program by the top tier management through
their channels of responsibility. Carrier maintains a single point of “ownership” of the
contract so all messaging/marketing/training remains consistent and on point with the
organizations goals.
K. Public agency sales – all sales data is company private. Our existing Omnia Partners
contract has grown exponentially in it’s first full year of usage – from less than $1M in FY23
(not a full year with Omnia Partners) to nearing $8M in FY24 and rapidly growing.
L. Information systems – Carrier utilizes modern information systems as would be
expected of current Fortune 500 company. Specific system usage is company private
information.
M. Supplier Guaranteed contract sales
Year one - $9M. Year Two - $11M, Year Three - $13M
N. Public Agency solicitations – items i, ii, iii, & iv are acknowledged
Region 14 ESC/Omnia Partners RFP 24-S850
Section 4 – References & Experience
1. History - Carrier Corporation is an American multinational heating, ventilation & air
conditioning (HVAC) and refrigeration equipment corporation based in Palm Beach
Gardens, FL. Carrier was founded in 1915 as an independent company
manufacturing and distributing HVAC systems, and has since expanded to include
manufacturing commercial refrigeration and food service equipment.
As of 2022, it was a $20.4 billion company with over 52,000 employees serving
customers in 160 countries on six continents.
Carrier was acquired by United Technologies in 1979, but it was spun oZ as an
independent company 41 years later in 2020
2. Carrier Corporation enjoys an excellent reputation in the HVAC marketplace. As the
inventor of air conditioning as it is known today, Carrier has been in a constant state
of innovation & product development. Carrier has led the market in modern low
GWP refrigerants and has often been the first to market with HVAC equipment with
these new enhancements.
3. Carrier equipment is a “house-hold” name in the HVAC space – Carrier’s products &
services are known to have an excellent reputation & our services team are able to
tackle the most diZicult issues with customer service issues.
4. Carrier has over 50,000 employees across the globe. Our team consists of top tier
people in all aspects of the business.
5. Carrier has decades of experience working in the government sectors – Federal,
State, Local and a large focus with K-12 & Higher Education. Carrier has worked
closely with the GSA on product comparisons and generated chiller programs form
them. Our K-12 vertical team has enjoyed the highest growth rate of all the market
specific teams over the past 5 years alone. We have dedicated strategic vertical
market teams for Federal/State/Local, Higher Education & K-12 sectors.
6. We work hard to build a culture where all employees are valued and everyone feels
included. We have a robust talent acquisition process to attract talent from the
diverse, global marketplace, and we foster an inclusive culture that drives employee
engagement, retention, teamwork and innovation. We also contribute to the
communities where we live and do business by actively partnering with community
and philanthropic organizations locally and nationally. Carrier is committed to a
workplace that is truly and genuinely inclusive, one that inspires and encourages
everyone to bring their authentic selves to work, every single day. Our ultimate goal
is simple – we want each and every Carrier employee to feel like they _belong. As a
global company we seek to recruit, develop and promote our employees around the
world valuing cultural diZerences, varied perspectives, background and
experiences. We believe inclusion and diversity is a source of innovation. Link to
Carrier Inclusion & Diversity - https://www.corporate.carrier.com/corporate-
responsibility/social-impact/our-employees/
7. Carrier has never filed bankruptcy & none of its oZicers or directors are under
government investigation.
8. Customer References
a. Rutgers University, Andy Dezaio, Facility Manager, 848-565-6428,
adezaio@rutgers.edu, New Brunswick NJ. Carrier provides an array of HVAC
services for RU – HVAC equipment, planned maintenance & repair services.
Annual volume is company private information.
b. Texas Tech University, David Small, Director of Engineering, 806-834-5742,
David.small@ttu.edu, Lubbock TX. Carrier provides large tonnage chillers,
installations & other HVAC equipment services to TTU – planned maintenance &
repair services. Annual volume is company private information.
c. University of Nebraska, Clay Kelly, Physical Plant Director, 402-429-8460,
clay.kelly@unl.edu, Lincoln NE. Carrier provides modernization services on
UNL’s large tonnage Carrier chillers. Carrier also provides HVAC consulting
services for future UNL projects. Annual volume is company private information
d. Savannah-Chatham Board of Education, Randy West, Facility Manager, 912-313-
8171, randy.west@sccpss.com, Savannah GA. Carrier provides planned
maintenance services, repair services and HVAC equipment to the district.
Annual volume is company private information.
e. City of Lewisville TX, Chris Kirby, Facility Manager, 972-219-3705,
chistopherkirby@cityoflewisville.com, Lewisville TX. Carrier provides planned
services, repair services, HVAC parts and HVAC equipment to the city. Annual
volume is company private information.
9. Carrier Corporation has been providing an array of services & equipment for the
Region 14 contract for 3 years & we are looking forward to many more.
Region 14 ESC/Omnia Partners RFP 24-S850
Section 5 – Added Value Products & Services
Carrier provides not only world class OEM branded commercial HVAC equipment but also
a number of additional oLerings.
Below is a list of our products designed to enhance the customer HVAC experience &
provide highest performing systems possible.
1. Carrier Certified Healthy Air Systems – Occupancy Assessments, Ventilation
equipment, Filtration, Air Quality, Thermal Comfort & Building Operation services
2. Strategic partnerships with the US Green Building Council (USGBC) and the
International WELL Building Institute.
3. Carrier Abound digitally connected lifecycle solutions
a. Abound Healthy Air - Abound Healthy Air aggregates, analyzes and visualizes
data collected from various building systems, equipment and sensors and
provides real-time insights about the components of your buildings’ air.
b. Abound HVAC Performance - Continuous digital monitoring, alarm
management, and proactive insights to see issues before they arise so you
can protect your investment.
c. Abound Net Zero Management - Environmental, social, and governance
(ESG) disclosure requirements and corporate goals have made energy
eLiciency and reducing greenhouse gas (GHG) emissions a priority, driving
the need to take action and report on progress.
d. Abound Occupant Assistant - Abound Occupant Assistant is a solution that
integrates human experiences, resources and building systems. Through
cloud-based, smart building IoT services and a SaaS oLering, the app helps
to simplify the management and development of modern buildings that meet
the needs of your entire team.
e. Abound Predictive Insights - Abound Predictive Insights is part of the Abound
suite of solutions for improved asset management across a building
portfolio. It combines advanced data analysis of your building’s assets with
advisory services from our team of experts, helping to optimize eLiciency,
comfort, and performance.
f. Abound Services - With the Abound Services, building owners and
management personnel can overcome these challenges and enhance their
business’s eLiciency: Abound Advisory Services: where we provide
assistance in planning and executing interventions that align with overall
business goals. Here we equip you with essential insights to enhance your
facility management eLorts and eLectively pursue your business objectives.
Abound Managed Services: where we provide a comprehensive oLering to
digitally transform building operations. This service involves enabling you
with a remote service management team that supports your existing facility
management team and acts as their extension, helping you achieve your
business goals.
4. Carrier HVAC system design services – Block loading software, Building System
Optimizer, Engineering Economic Analysis, System Design Load & Refrigerant Piping
Design.
5. Carrier University - HVAC service requires a good foundation in theory, mastery of
basic skills and mechanical and electrical troubleshooting skills. Online and
classroom courses are available at various skill levels to meet various training
needs. Classroom courses use the fully equipped state of the art lab facility with
operating equipment to practice classroom training. Most classes qualify for NATE
continuing education credit.
6. Carrier HVAC Equipment Representatives & Distributors – Carrier equipment goes
to market through a number of channels, two of which are rep & distribution firms.
These companies represent the lion share of Carrier equipment sales in North
America & they also maintain a large amount of other HVAC/Mechanical equipment
required to provide a complete HVAC system to an end user – all of these equipment
oLerings are available on the Region 14/Omnia Partners contract as authorized
Carrier resellers. Combined with Carrier Commercial Services – and end user can
purchase a complete, installed HVAC system with a single purchase order.
7. Nlyte Data Center Management Solutions
a. Nlyte Asset Optimizer - Nlyte Asset Optimizer is an open and scalable
software solution that provides automation and eLiciency to asset lifecycle
management, capacity planning, audit, and compliance tracking. Asset
Optimizer easily manages assets from receiving dock to decommissioning
globally or rack by rack, in a data center, colo, or edge facility. It simplifies
space and energy planning and easily connects to ITSM and other BI
applications.
b. Nlyte Energy Optimizer - Nlyte Energy Optimizer provides management and
tracking of the data center power chain. It is highly scalable, protocol based,
and hardware agnostic. Energy Optimizer improves energy consumption,
reduces risk in the power chain, and validates remote site performance.
c. Nlyte Datacenter Monitoring - Optimize Your System Utilization With Real-
Time Data Center Monitoring and Reporting. As data centers grow in scale
and complexity, it becomes more and more challenging to monitor space,
power and cooling. System utilization, or the lack of, is increasingly being
scrutinized as enterprises routinely discover upwards of 20% “ghost servers”
that idly consume energy but serve no business function. In addition, with
the DCOI (Data Center Optimization Initiative) mandate to aggressively
consolidate and optimize governmental data centers by 2018, server
utilization will be a key metric to monitor and manage.
Appendix A – Required Documents
1. Antitrust Certification Statement (Tex. Government Code § 2155.005)
2. Implementation of House Bill 1295 Certificate of Interested Parties (Form 1295)
3. Texas Government Code 2270 Verification Form
4. Any additional agreements supplier will require Participating Agencies to sign
Version April 10, 2024
Appendix A, Doc #1
ANTITRUST CERTIFICATION STATEMENTS
(Tex. Government Code § 2155.005)
Attorney General Form
I affirm under penalty of perjury of the laws of the State of Texas that:
1. I am duly authorized to execute this Contract on my own behalf or on behalf of the company,
corporation, firm, partnership or individual (Company) listed below;
2. In connection with this proposal, neither I nor any representative of the Company has violated
any provision of the Texas Free Enterprise and Antitrust Act, Tex. Bus. & Comm. Code Chapter
15;
3. In connection with this proposal, neither I nor any representative of the Company has violated
any federal antitrust law; and
4. Neither I nor any representative of the Company has directly or indirectly communicated any
of the contents of this proposal to a competitor of the Company or any other company,
corporation, firm, partnership or individual engaged in the same line of business as the
Company.
Company Contact
Carrier Corporation
Signature
Joe Ison
Printed Name
Strategic Accounts Manager
Position with Company
Address 13995 Pasteur Blvd
Official Authorizing Proposal
Signature
Joe Ison
Printed Name
Phone 501-529-9688 Strategic Accounts Manager
Position with Company
Fax N/A
Version April 10, 2024
Appendix A, DOC # 2
Implementation of House Bill 1295
Certificate of Interested Parties (Form 1295):
In 2015, the Texas Legislature adopted House Bill 1295, which added section 2252.908 of the
Government Code. The law states that a governmental entity or state agency may not enter
into certain contracts with a business entity unless the business entity submits a disclosure of
interested parties to the governmental entity or state agency at the time the business entity
submits the signed contract to the governmental entity or state agency. The law applies only
to a contract of a governmental entity or state agency that either (1) requires an action or vote
by the governing body of the entity or agency before the contract may be signed or (2) has a
value of at least $1 million. The disclosure requirement applies to a contract entered into on or
after January 1, 2016.
Type text here
The Texas Ethics Commission was required to adopt rules necessary to implement that law,
prescribe the disclosure of interested parties form, and post a copy of the form on the
commission’s website. The commission adopted the Certificate of Interested Parties form
(Form 1295) on October 5, 2015. The commission also adopted new rules (Chapter 46) on
November 30, 2015, to implement the law. The commission does not have any additional
authority to enforce or interpret House Bill 1295.
Filing Process:
Staring on January 1, 2016, the commission made available on its website a new filing
application that must be used to file Form 1295. A business entity must use the application to
enter the required information on Form 1295 and print a copy of the completed form, which will
include a certification of filing that will contain a unique certification number. An authorized
agent of the business entity must sign the printed copy of the form. The completed Form 1295
with the certification of filing must be filed with the governmental body or state agency with
which the business entity is entering into the contract.
The governmental entity or state agency must notify the commission, using the commission’s
filing application, of the receipt of the filed Form 1295 with the certification of filing not later
than the 30th day after the date the contract binds all parties to the contract. This process is
known as acknowledging the certificate. The commission will post the acknowledged Form
1295 to its website within seven business days after receiving notice from the governmental
entity or state agency. The posted acknowledged form does not contain the declaration of
signature information provided by the business.
A certificate will stay in the pending state until it is acknowledged by the governmental agency.
Only acknowledged certificates are posted to the commission’s website.
Electronic Filing Application:
https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm
Frequently Asked Questions:
https://www.ethics.state.tx.us/resources/FAQs/FAQ_Form1295.php
Changes to Form 1295: https://www.ethics.state.tx.us/data/filinginfo/1295Changes.pdf
Version April 10, 2024
CERTIFICATE OF INTERESTED PARTIES
FORM 1295
1 of 1
Complete Nos. 1 - 4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form, and the city, state and country of the business entity's place Certificate Number:
of business. 2024-1225350
Carrier Corporation
Abilene, TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 10/10/2024
being filed.
Region 14 Education Service Center Date Acknowledged:
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goods, or other property to be provided under the contract.
Omnia Partners RFP 24-S850
HVAC and Building Control Systems, Equipment, Installation, and Related Products and Services
Nature of interest
4
Name of Interested Party City, State, Country (place of business) (check applicable)
Controlling Intermediary
5 Check only if there is NO Interested Party.
X
6 UNSWORN DECLARATION
My name is _______________________________________________________________, and my date of birth is _______________________.
My address is _______________________________________________, _______________________, _______, ______________, _________.
(street) (city) (state) (zip code) (country)
I declare under penalty of perjury that the foregoing is true and correct.
Executed in ________________________________________County, State of ________________, on the _____day of ___________, 20_____.
(month) (year)
Signature of authorized agent of contracting business entity
(Declarant)
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V4.1.0.48da51f7
Appendix A, DOC # 3
Texas Government Code 2270 Verification Form
House Bill 89 (85R Legislative Session), which adds Chapter 2270 to the Texas Government
Code, provides that a governmental entity may not enter into a contract with a company without
verification that the contracting vendor does not and will not boycott Israel during the term of the
contract.
Furthermore, Senate Bill 252 (85R Legislative Session), which amends Chapter 2252 of the
Texas Government Code to add Subchapter F, prohibits contracting with a company engaged in
business with Iran, Sudan or a foreign terrorist organization identified on a list prepared by the
Texas Comptroller.
Joe Ison
I, ____________________, as an authorized representative of
Carrier Corporation
___________________________________________, a contractor engaged by
Insert Name of Company
Region 14 Education Service Center, 1850 Highway 351, Abilene, Texas 79601, verify by this
writing that the above-named company affirms that it (1) does not boycott Israel; and (2) will not
boycott Israel during the term of this contract, or any contract with the above-named Texas
governmental entity in the future.
Also, our company is not listed on and we do not do business with companies that are on the
Texas Comptroller of Public Accounts list of Designated Foreign Terrorists Organizations found
at https://comptroller.texas.gov/purchasing/docs/foreign-terrorist.pdf.
I further affirm that if our company's position on this issue is reversed and this affirmation is no
longer valid, that the above-named Texas governmental entity will be notified in writing within one
(1) business day and we understand that our company's failure to affirm and comply with the
requirements of Texas Government Code 2270 et seq. shall be grounds for immediate contract
termination without penalty to the above-named Texas governmental entity.
I swear and affirm that the above is true and correct.
______________________________________________ 10/10/2024
________________
Signature of Named Authorized Company Representative Date
Version April 10, 2024
Appendix B – OMNIA Partners Exhibits
[Insert OMNIA Partners Exhibits]
Version April 10, 2024
Exhibit F
Federal Funds Certifications
FEDERAL CERTIFICATIONS
ADDENDUM FOR AGREEMENT FUNDED BY U.S. FEDERAL GRANT
TO WHOM IT MAY CONCERN:
Participating Agencies may elect to use federal funds to purchase under the Master Agreement. This form should be
completed and returned.
DEFINITIONS
Contract means a legal instrument by which a non–Federal entity purchases property or services needed to carry out the project
or program under a Federal award. The term as used in this part does not include a legal instrument, even if the non–Federal
entity considers it a contract, when the substance of the transaction meets the definition of a Federal award or subaward
Contractor means an entity that receives a contract as defined in Contract.
Cooperative agreement means a legal instrument of financial assistance between a Federal awarding agency or pass-through
entity and a non–Federal entity that, consistent with 31 U.S.C. 6302–6305:
(a) Is used to enter into a relationship the principal purpose of which is to transfer anything of value from the Federal
awarding agency or pass-through entity to the non–Federal entity to carry out a public purpose authorized by a law of
the United States (see 31 U.S.C. 6101(3)); and not to acquire property or services for the Federal government or
pass-through entity's direct benefit or use;
(b) Is distinguished from a grant in that it provides for substantial involvement between the Federal awarding agency
or pass-through entity and the non–Federal entity in carrying out the activity contemplated by the Federal award.
(c) The term does not include:
(1) A cooperative research and development agreement as defined in 15 U.S.C. 3710a; or
(2) An agreement that provides only:
(i) Direct United States Government cash assistance to an individual;
(ii) A subsidy;
(iii) A loan;
(iv) A loan guarantee; or
(v) Insurance.
Federal awarding agency means the Federal agency that provides a Federal award directly to a non–Federal entity
Federal award has the meaning, depending on the context, in either paragraph (a) or (b) of this section:
(a)(1) The Federal financial assistance that a non–Federal entity receives directly from a Federal awarding agency or
indirectly from a pass-through entity, as described in § 200.101 Applicability; or
(2) The cost-reimbursement contract under the Federal Acquisition Regulations that a non–Federal entity
receives directly from a Federal awarding agency or indirectly from a pass-through entity, as described in §
200.101 Applicability.
(b) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative
agreement, other agreement for assistance covered in paragraph (b) of § 200.40 Federal financial assistance, or the
cost-reimbursement contract awarded under the Federal Acquisition Regulations.
(c) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a
contractor or a contract to operate Federal government owned, contractor operated facilities (GOCOs).
(d) See also definitions of Federal financial assistance, grant agreement, and cooperative agreement.
Version June 26, 2024
Non–Federal entity means a state, local government, Indian tribe, institution of higher education (IHE), or nonprofit organization
that carries out a Federal award as a recipient or subrecipient.
Nonprofit organization means any corporation, trust, association, cooperative, or other organization, not including IHEs, that:
(a) Is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest;
(b) Is not organized primarily for profit; and
(c) Uses net proceeds to maintain, improve, or expand the operations of the organization.
Obligations means, when used in connection with a non–Federal entity's utilization of funds under a Federal award, orders
placed for property and services, contracts and subawards made, and similar transactions during a given period that require
payment by the non–Federal entity during the same or a future period.
Pass-through entity means a non–Federal entity that provides a subaward to a subrecipient to carry out part of a Federal
program.
Recipient means a non–Federal entity that receives a Federal award directly from a Federal awarding agency to carry out an
activity under a Federal program. The term recipient does not include subrecipients.
Simplified acquisition threshold means the dollar amount below which a non–Federal entity may purchase property or
services using small purchase methods. Non–Federal entities adopt small purchase procedures in order to expedite the
purchase of items costing less than the simplified acquisition threshold. The simplified acquisition threshold is set by the Federal
Acquisition Regulation at 48 CFR Subpart 2.1 (Definitions) and in accordance with 41 U.S.C. 1908. As of the publication of this
part, the simplified acquisition threshold is $250,000, but this threshold is periodically adjusted for inflation. (Also see definition
of § 200.67 Micro-purchase.)
Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal
award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a
beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement
that the pass-through entity considers a contract.
Subrecipient means a non–Federal entity that receives a subaward from a pass-through entity to carry out part of a Federal
program; but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other
Federal awards directly from a Federal awarding agency.
Termination means the ending of a Federal award, in whole or in part at any time prior to the planned end of period of
performance.
The following provisions may be required and apply when Participating Agency expends federal funds for any purchase resulting
from this procurement process. Per FAR 52.204-24 and FAR 52.204-25, solicitations and resultant contracts shall contain the
following provisions.
52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment (Oct
2020)
The Offeror shall not complete the representation at paragraph (d)(1) of this provision if the Offeror has represented that it "does
not provide covered telecommunications equipment or services as a part of its offered products or services to the Government in
the performance of any contract, subcontract, or other contractual instrument" in paragraph (c)(1) in the provision at 52.204-26,
Covered Telecommunications Equipment or Services—Representation, or in paragraph (v)(2)(i) of the provision at 52.212-3,
Offeror Representations and Certifications-Commercial Items. The Offeror shall not complete the representation in paragraph
(d)(2) of this provision if the Offeror has represented that it "does not use covered telecommunications equipment or services, or
any equipment, system, or service that uses covered telecommunications equipment or services" in paragraph (c)(2) of the
provision at 52.204-26, or in paragraph (v)(2)(ii) of the provision at 52.212-3.
(a) Definitions. As used in this provision—
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Backhaul, covered telecommunications equipment or services, critical technology, interconnection arrangements,
reasonable inquiry, roaming, and substantial or essential component have the meanings provided in the clause 52.204-25,
Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.
(b) Prohibition.
(1) Section 889(a)(1)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232)
prohibits the head of an executive agency on or after August 13, 2019, from procuring or obtaining, or extending or renewing a
contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as
a substantial or essential component of any system, or as critical technology as part of any system. Nothing in the prohibition shall
be construed to—
(i) Prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the
facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or
(ii) Cover telecommunications equipment that cannot route or redirect user data traffic or cannot permit visibility into
any user data or packets that such equipment transmits or otherwise handles.
(2) Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-
232) prohibits the head of an executive agency on or after August 13, 2020, from entering into a contract or extending or renewing
a contract with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services
as a substantial or essential component of any system, or as critical technology as part of any system. This prohibition applies to
the use of covered telecommunications equipment or services, regardless of whether that use is in performance of work under a
Federal contract. Nothing in the prohibition shall be construed to—
(i) Prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the
facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or
(ii) Cover telecommunications equipment that cannot route or redirect user data traffic or cannot permit visibility into
any user data or packets that such equipment transmits or otherwise handles.
(c) Procedures. The Offeror shall review the list of excluded parties in the System for Award Management (SAM)
(https://www.sam.gov) for entities excluded from receiving federal awards for "covered telecommunications equipment or services".
(d) Representation. The Offeror represents that—
(1) It □ will, □ will not provide covered telecommunications equipment or services to the Government in the performance
of any contract, subcontract or other contractual instrument resulting from this solicitation. The Offeror shall provide the additional
disclosure information required at paragraph (e)(1) of this section if the Offeror responds "will" in paragraph (d)(1) of this section;
and
(2) After conducting a reasonable inquiry, for purposes of this representation, the Offeror represents that—
It □ does, □ does not use covered telecommunications equipment or services, or use any equipment, system, or service
that uses covered telecommunications equipment or services. The Offeror shall provide the additional disclosure information
required at paragraph (e)(2) of this section if the Offeror responds "does" in paragraph (d)(2) of this section.
(e) Disclosures.
(1) Disclosure for the representation in paragraph (d)(1) of this provision. If the Offeror has responded "will" in the representation
in paragraph (d)(1) of this provision, the Offeror shall provide the following information as part of the offer.
(i) For covered equipment—
(A) The entity that produced the covered telecommunications equipment (include entity name, unique entity
identifier, CAGE code, and whether the entity was the original equipment manufacturer (OEM) or a distributor, if known);
(B) A description of all covered telecommunications equipment offered (include brand; model number, such as
OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); and
(C) Explanation of the proposed use of covered telecommunications equipment and any factors relevant to
determining if such use would be permissible under the prohibition in paragraph (b)(1) of this provision.
(ii) For covered services—
(A) If the service is related to item maintenance: A description of all covered telecommunications services offered
(include on the item being maintained: Brand; model number, such as OEM number, manufacturer part number, or wholesaler
number; and item description, as applicable); or
(B) If not associated with maintenance, the Product Service Code (PSC) of the service being provided; and
explanation of the proposed use of covered telecommunications services and any factors relevant to determining if such use would
be permissible under the prohibition in paragraph (b)(1) of this provision.
Version June 26, 2024
(2) Disclosure for the representation in paragraph (d)(2) of this provision. If the Offeror has responded "does" in the
representation in paragraph (d)(2) of this provision, the Offeror shall provide the following information as part of the offer:
(i) For covered equipment—
(A) The entity that produced the covered telecommunications equipment (include entity name, unique entity
identifier, CAGE code, and whether the entity was the OEM or a distributor, if known);
(B) A description of all covered telecommunications equipment offered (include brand; model number, such as
OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); and
(C) Explanation of the proposed use of covered telecommunications equipment and any factors relevant to
determining if such use would be permissible under the prohibition in paragraph (b)(2) of this provision.
(ii) For covered services—
(A) If the service is related to item maintenance: A description of all covered telecommunications services offered
(include on the item being maintained: Brand; model number, such as OEM number, manufacturer part number, or wholesaler
number; and item description, as applicable); or
(B) If not associated with maintenance, the PSC of the service being provided; and explanation of the proposed
use of covered telecommunications services and any factors relevant to determining if such use would be permissible under the
prohibition in paragraph (b)(2) of this provision.
52.204-25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment
(Aug 2020).
(a) Definitions. As used in this clause—
Backhaul means intermediate links between the core network, or backbone network, and the small subnetworks at the edge
of the network (e.g., connecting cell phones/towers to the core telephone network). Backhaul can be wireless (e.g., microwave) or
wired (e.g., fiber optic, coaxial cable, Ethernet).
Covered foreign country means The People’s Republic of China.
Covered telecommunications equipment or services means–
(1) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary
or affiliate of such entities);
(2) For the purpose of public safety, security of Government facilities, physical security surveillance of critical
infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera
Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any
subsidiary or affiliate of such entities);
(3) Telecommunications or video surveillance services provided by such entities or using such equipment; or
(4) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary
of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation,
reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.
Critical technology means–
(1) Defense articles or defense services included on the United States Munitions List set forth in the International Traffic
in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal Regulations;
(2) Items included on the Commerce Control List set forth in Supplement No. 1 to part 774 of the Export Administration
Regulations under subchapter C of chapter VII of title 15, Code of Federal Regulations, and controlled-
(i) Pursuant to multilateral regimes, including for reasons relating to national security, chemical and biological
weapons proliferation, nuclear nonproliferation, or missile technology; or
(ii) For reasons relating to regional stability or surreptitious listening;
(3) Specially designed and prepared nuclear equipment, parts and components, materials, software, and technology
covered by part 810 of title 10, Code of Federal Regulations (relating to assistance to foreign atomic energy activities);
(4) Nuclear facilities, equipment, and material covered by part 110 of title 10, Code of Federal Regulations (relating to
export and import of nuclear equipment and material);
(5) Select agents and toxins covered by part 331 of title 7, Code of Federal Regulations, part 121 of title 9 of such Code,
or part 73 of title 42 of such Code; or
(6) Emerging and foundational technologies controlled pursuant to section 1758 of the Export Control Reform Act of
2018 (50 U.S.C. 4817).
Version June 26, 2024
Interconnection arrangements means arrangements governing the physical connection of two or more networks to allow
the use of another's network to hand off traffic where it is ultimately delivered (e.g., connection of a customer of telephone provider
A to a customer of telephone company B) or sharing data and other information resources.
Reasonable inquiry means an inquiry designed to uncover any information in the entity's possession about the identity of
the producer or provider of covered telecommunications equipment or services used by the entity that excludes the need to include
an internal or third-party audit.
Roaming means cellular communications services (e.g., voice, video, data) received from a visited network when unable to
connect to the facilities of the home network either because signal coverage is too weak or because traffic is too high.
Substantial or essential component means any component necessary for the proper function or performance of a piece of
equipment, system, or service.
(b) Prohibition.
(1) Section 889(a)(1)(A) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232)
prohibits the head of an executive agency on or after August 13, 2019, from procuring or obtaining, or extending or renewing a
contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as
a substantial or essential component of any system, or as critical technology as part of any system. The Contractor is prohibited
from providing to the Government any equipment, system, or service that uses covered telecommunications equipment or services
as a substantial or essential component of any system, or as critical technology as part of any system, unless an exception at
paragraph (c) of this clause applies or the covered telecommunication equipment or services are covered by a waiver described
in FAR 4.2104.
(2) Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-
232) prohibits the head of an executive agency on or after August 13, 2020, from entering into a contract, or extending or renewing
a contract, with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services
as a substantial or essential component of any system, or as critical technology as part of any system, unless an exception at
paragraph (c) of this clause applies or the covered telecommunication equipment or services are covered by a waiver described
in FAR 4.2104. This prohibition applies to the use of covered telecommunications equipment or services, regardless of whether
that use is in performance of work under a Federal contract.
(c) Exceptions. This clause does not prohibit contractors from providing—
(1) A service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements;
or
(2) Telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or
packets that such equipment transmits or otherwise handles.
(d) Reporting requirement.
(1) In the event the Contractor identifies covered telecommunications equipment or services used as a substantial or essential
component of any system, or as critical technology as part of any system, during contract performance, or the Contractor is notified
of such by a subcontractor at any tier or by any other source, the Contractor shall report the information in paragraph (d)(2) of this
clause to the Contracting Officer, unless elsewhere in this contract are established procedures for reporting the information; in the
case of the Department of Defense, the Contractor shall report to the website at https://dibnet.dod.mil. For indefinite delivery
contracts, the Contractor shall report to the Contracting Officer for the indefinite delivery contract and the Contracting Officer(s) for
any affected order or, in the case of the Department of Defense, identify both the indefinite delivery contract and any affected
orders in the report provided at https://dibnet.dod.mil.
(2) The Contractor shall report the following information pursuant to paragraph (d)(1) of this clause
(i) Within one business day from the date of such identification or notification: the contract number; the order
number(s), if applicable; supplier name; supplier unique entity identifier (if known); supplier Commercial and Government Entity
(CAGE) code (if known); brand; model number (original equipment manufacturer number, manufacturer part number, or wholesaler
number); item description; and any readily available information about mitigation actions undertaken or recommended.
(ii) Within 10 business days of submitting the information in paragraph (d)(2)(i) of this clause: any further available
information about mitigation actions undertaken or recommended. In addition, the Contractor shall describe the efforts it undertook
to prevent use or submission of covered telecommunications equipment or services, and any additional efforts that will be
incorporated to prevent future use or submission of covered telecommunications equipment or services.
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(e) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (e) and excluding
paragraph (b)(2), in all subcontracts and other contractual instruments, including subcontracts for the acquisition of commercial
items.
The following certifications and provisions may be required and apply when Participating Agency expends federal funds for any
purchase resulting from this procurement process. Pursuant to 2 C.F.R. § 200.326, all contracts, including small purchases,
awarded by the Participating Agency and the Participating Agency’s subcontractors shall contain the procurement provisions of
Appendix II to Part 200, as applicable.
APPENDIX II TO 2 CFR PART 200
(A) Contracts for more than the simplified acquisition threshold currently set at $250,000, which is the inflation adjusted
amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council
(Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances
where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.
Pursuant to Federal Rule (A) above, when a Participating Agency expends federal funds, the Participating Agency reserves all
rights and privileges under the applicable laws and regulations with respect to this procurement in the event of breach of contract
by either party.
Does offeror agree? YES Initials of Authorized Representative of
offeror
(B) Termination for cause and for convenience by the grantee or subgrantee including the manner by which it will be
effected and the basis for settlement. (All contracts in excess of $10,000)
Pursuant to Federal Rule (B) above, when a Participating Agency expends federal funds, the Participating Agency reserves the
right to immediately terminate any agreement in excess of $10,000 resulting from this procurement process in the event of a
breach or default of the agreement by Offeror as detailed in the terms of the contract.
Does offeror agree? YES Initials of Authorized Representative of
offeror
(C) Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the
definition of “federally assisted construction contract” in 41 CFR Part 60-1.3 must include the equal opportunity clause
provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30
CFR 12319, 12935, 3 CFR Part, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive
Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of
Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.”
Pursuant to Federal Rule (C) above, when a Participating Agency expends federal funds on any federally assisted construction
contract, the equal opportunity clause is incorporated by reference herein.
Does offeror agree to abide by the above? YES Initials of Authorized Representative of offeror
(D) Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime
construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance
with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations
(29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted
Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics
at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In
addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a
copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision
to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non
- Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must
also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), as supplemented by
Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work
Version June 26, 2024
Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or
subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or
repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non -Federal
entity must report all suspected or reported violations to the Federal awarding agency.
Pursuant to Federal Rule (D) above, when a Participating Agency expends federal funds during the term of an award for all
contracts and subgrants for construction or repair, offeror will be in compliance with all applicable Davis-Bacon Act provisions.
Does offeror agree? YES Initials of Authorized Representative of offeror
(E) Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by
the non-Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a
provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR
Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and
laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible
provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all
hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction
work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions
which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or
materials or articles ordinarily available on the open market, or contracts for transportation or transmission of
intelligence.
Pursuant to Federal Rule (E) above, when a Participating Agency expends federal funds, offeror certifies that offeror will be in
compliance with all applicable provisions of the Contract Work Hours and Safety Standards Act during the term of an award for
all contracts by Participating Agency resulting from this procurement process.
Does offeror agree? YES Initials of Authorized Representative of offeror
(F) Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding
agreement” under 37 CFR §401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small
business firm or nonprofit organization regarding the substitution of parties, assignment or performance of
experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must
comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small
Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations
issued by the awarding agency.
Pursuant to Federal Rule (F) above, when federal funds are expended by Participating Agency, the offeror certifies that during
the term of an award for all contracts by Participating Agency resulting from this procurement process, the offeror agrees to
comply with all applicable requirements as referenced in Federal Rule (F) above.
Does offeror agree? YES Initials of Authorized Representative of offeror
(G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as
amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non -
Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air
Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251- 1387). Violations
must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency
(EPA)
In the event Federal Transit Administration (FTA) or Department of Transportation (DOT) funding is used by Participating Public
Agency, Offeror also agrees to include Clean Air and Clean Water requirements in each subcontract exceeding $100,000 financed
in whole or in part with Federal assistance provided by FTA.
Pursuant to Federal Rule (G) above, when federal funds are expended by Participating Agency, the offeror certifies that during
the term of an award for all contracts by Participating Agency member resulting from this procurement process, the offeror
agrees to comply with all applicable requirements as referenced in Federal Rule (G) above.
Does offeror agree? YES Initials of Authorized Representative of offeror
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(H) Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be
made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance
with the Executive Office of the President Office of Management and Budget (OMB) guidelines at 2 CFR 180 that
implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235),
“Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise
excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive
Order 12549.
Pursuant to Federal Rule (H) above, when federal funds are expended by Participating Agency, the offeror certifies that during
the term of an award for all contracts by Participating Agency resulting from this procurement process, the offeror certifies that
neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded
from participation by any federal department or agency. If at any time during the term of an award the offeror or its principals
becomes debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any
federal department or agency, the offeror will notify the Participating Agency.
Does offeror agree? YES Initials of Authorized Representative of offeror
(I) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award exceeding $100,000
must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee
of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in
connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must
also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the non-Federal award.
Pursuant to Federal Rule (I) above, when federal funds are expended by Participating Agency, the offeror certifies that during
the term and after the awarded term of an award for all contracts by Participating Agency resulting from this procurement
process, the offeror certifies that it is in compliance with all applicable provisions of the Byrd Anti-Lobbying Amendment (31
U.S.C. 1352). The undersigned further certifies that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing
or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting
to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard Form-LLL, "Disclosure of Lobbying Activities," in accordance with its instructions.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered
into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title
31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and
not more than $100,000 for each such failure.
(3) The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language
of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such subrecipients shall certify
and disclose accordingly.
Does offeror agree? YES Initials of Authorized Representative of offeror
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RECORD RETENTION REQUIREMENTS FOR CONTRACTS INVOLVING FEDERAL FUNDS
When federal funds are expended by Participating Agency for any contract resulting from this procurement process, offeror
certifies that it will comply with the record retention requirements detailed in 2 CFR § 200.333. The offeror further certifies that
offeror will retain all records as required by 2 CFR § 200.333 for a period of three years after grantees or subgrantees
submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
Does offeror agree? YES Initials of Authorized Representative of offeror
CERTIFICATION OF COMPLIANCE WITH THE ENERGY POLICY AND CONSERVATION ACT
When Participating Agency expends federal funds for any contract resulting from this procurement process, offeror certifies that
it will comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy
conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.; 49 C.F.R. Part 18).
Does offeror agree? YES Initials of Authorized Representative of offeror
CERTIFICATION OF COMPLIANCE WITH BUY AMERICA PROVISIONS
To the extent purchases are made with Federal Highway Administration, Federal Railroad Administration, or Federal Transit
Administration funds, offeror certifies that its products comply with all applicable provisions of the Buy America Act and agrees to
provide such certification or applicable waiver with respect to specific products to any Participating Agency upon request.
Purchases made in accordance with the Buy America Act must still follow the applicable procurement rules calling for free and
open competition. Additionally:
(1) The Contractor agrees to comply with 49 USC 5323(j) and 49 CFR Part 661, which provide that federal funds may not
be obligated unless steel, iron and manufactured products used in FTA-funded projects are produced in the United
States, unless a waiver has been granted by FTA or the product is subject to a general waiver. General waivers are
listed in 49 CFR 661.7.A general public interest waiver from the Buy America requirements applies to microprocessors,
computers, microcomputers, software or other such devices, which are used solely for the purpose of processing or
storing data. This general waiver does not extend to a product or device that merely contains a microprocessor or
microcomputer and is not used solely for the purpose of processing or storing data. Separate requirements for rolling
stock are set out at 5323(j)(2)(C) and 49 CFR 661.11.
(2) A bidder or offeror must submit to the FTA recipient the appropriate Buy America certification with all bids on FTA-
funded contracts, except those subject to a general waiver. Bids or offers that are not accompanied by a completed
Buy America certification must be rejected as nonresponsive. This requirement does not apply to lower tier
subcontractors.
The following certificates titled FTA and DOT Buy America Certification should be completed and returned with the response
as part of FTA and DOT requirements.
FEDERAL TRASIT ADMINISTRATION (FTA) AND DEPARTMENT OF TRANSPORTATION (DOT) -
BUY AMERICA: CERTIFICATION REQUIREMENT FOR PROCUREMENTOF ROLLING STOCK
CERTIFICATE OF COMPLIANCE
(select one of the two options, NOT BOTH)
Certificate of Compliance with 49 USC §5323(j)
The proposer hereby certifies that it will comply with the requirements of 49 U.S.C. 5323(j), and the applicable regulations of 49
CFR 661.11.
Check for YES:
OR
Certificate of Non-Compliance with 49 USC §5323(j)
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The proposer hereby certifies that it cannot comply with the requirements of 49 U.S.C. 5323(j), but may qualify for an exception to
the requirement consistent with 49 U.S.C. 5323(j)(2)(C), and the applicable regulations in 49 CFR 661.7.
Check for YES:
FEDERAL TRASIT ADMINISTRATION (FTA) AND DEPARTMENT OF TRANSPORTATION (DOT) -
BUY AMERICA: CERTIFICATION REQUIREMENT FOR PROCUREMENT OF STEEL OR MANUFACTURED PRODUCTS
CERTIFICATE OF COMPLIANCE (select one of the two options, NOT BOTH)
Certificate of Compliance with 49 USC §5323(j)(1)
The proposer hereby certifies that it will comply with the requirements of 49 U.S.C. 5323(j)(1), and the applicable regulations in 49
CFR part 661.
Check for YES:
OR
Certificate of Non-Compliance with 49 USC §5323(j)(1)
The proposer hereby certifies that it cannot comply with the requirements of 49 U.S.C. 5323(j), but it may qualify for an exception
to the requirement pursuant to 49 U.S.C. 5323(j)(2), as amended, and the applicable regulations in 49 CFR 661.7.
Check for YES:
Does offeror agree? YES Initials of Authorized Representative of offeror
Offeror’s Name: ___________________________________________________________________________________
Address, City, State, and Zip Code: ________________________________________________________________________
Phone Number: __________________________________
Fax Number: ______________________________________
Printed Name and Title of Authorized Representative: _____________________________________________________________________
Email Address: __________________________________________________________________________________
Signature of Authorized Representative: ____________________________________
Date: _____________________________
Unless Supplier is exempt (See FAR 25.103), when authorized by statute or explicitly indicated by Participating Public Agency,
Buy American requirements will apply where only unmanufactured construction material mined or produced in the United States
shall be used (see Subpart 25.6 – American Recovery and Reinvestment Act-Buy American statute for additional details).
CERTIFICATION OF ACCESS TO RECORDS – 2 C.F.R. § 200.336
Offeror agrees that the Inspector General of the Agency or any of their duly authorized representatives shall have access to any
documents, papers, or other records of offeror that are pertinent to offeror’s discharge of its obligations under the Contract for
the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access
to offeror’s personnel for the purpose of interview and discussion relating to such documents.
Does offeror agree? YES Initials of Authorized Representative of offeror
CERTIFICATION OF APPLICABILITY TO SUBCONTRACTORS
Offeror agrees that all contracts it awards pursuant to the Contract shall be bound by the foregoing terms and conditions.
Does offeror agree? YES Initials of Authorized Representative of offeror
COMMUNITY DEVELOPMENT BLOCK GRANTS
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Purchases made under this contract may be partially or fully funded with federal grant funds. Funding for this work may include
Federal Funding sources, including Community Development Block Grant (CDBG) funds from the U.S. Department of Housing
and Urban Development. When such funding is provided, Offeror shall comply with all terms, conditions and requirements
enumerated by the grant funding source, as well as requirements of the State statutes for which the contract is utilized, whichever
is the more restrictive requirement. When using Federal Funding, Offeror shall comply with all wage and latest reporting provisions
of the Federal Davis-Bacon Act. HUD-4010 Labor Provisions also applies to this contract.
Does offeror agree? YES Initials of Authorized Representative of offeror
Offeror agrees to comply with all federal, state, and local laws, rules, regulations and ordinances, as applicable. It is
further acknowledged that offeror certifies compliance with all provisions, laws, acts, regulations, etc. as
specifically noted above.
Offeror’s Name:
____________________________________________________________________________________________
Carrier Corporation
Address, City, State, and Zip Code:
_____________________________________________________________________________
13995 Pasteur Blvd, Palm Beach Gardens, FL 33418
Phone Number: ________________________________
501-529-9688 Fax Number: ______________________________________
N/A
Printed Name and Title of Authorized Representative:
_____________________________________________________________________
Joe Ison, Strategic Accounts Manager
Email Address:
____________________________________________________________________________________________
joseph.e.ison@carrier.com
Signature of Authorized Representative: ____________________________________Date: _____________________________
10/10/2024
Version June 26, 2024
FEMA AND ADDITIONAL FEDERAL FUNDING SPECIAL CONDITIONS
Awarded Supplier(s) (also referred to as Contractors) may need to respond to events and losses where
products and services are needed for the immediate and initial response to emergency situations such as,
but not limited to, water damage, fire damage, vandalism cleanup, biohazard cleanup, sewage
decontamination, deodorization, and/or wind damage during a disaster or emergency situation. By
submitting a proposal, the Supplier is accepted these FEMA and Additional Federal Funding Special
Conditions required by the Federal Emergency Management Agency (FEMA) and other federal entities.
“Contract” in the below pages under FEMA AND ADDITIONAL FEDERAL FUNDING SPECIAL
CONDITIONS is also referred to and defined as the “Master Agreement”.
“Contractor” in the below pages under FEMA AND ADDITIONAL FEDERAL FUNDING SPECIAL
CONDITIONS is also referred to and defined as “Supplier” or “Awarded Supplier”.
Conflicts of Interest
No employee, officer, or agent may participate in the selection, award, or administration of a contract
supported by a FEMA award if he or she has a real or apparent conflict of interest. Such a conflict would
arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner,
or an organization which employs or is about to employ any of these parties, has a financial or other interest
in or a tangible personal benefit from a firm considered for award. 2 C.F.R. § 200.318(c)(1); See also
Standard Form 424D, ¶ 7; Standard Form 424B, ¶ 3. i. FEMA considers a “financial interest” to be the
potential for gain or loss to the employee, officer, or agent, any member of his or her immediate family, his
or her partner, or an organization which employs or is about to employ any of these parties as a result of
the particular procurement. The prohibited financial interest may arise from ownership of certain financial
instruments or investments such as stock, bonds, or real estate, or from a salary, indebtedness, job offer,
or similar interest that might be affected by the particular procurement. ii. FEMA considers an “apparent”
conflict of interest to exist where an actual conflict does not exist, but where a reasonable person with
knowledge of the relevant facts would question the impartiality of the employee, officer, or agent
participating in the procurement. c. Gifts. The officers, employees, and agents of the Participating Public
Agency nor the Participating Public Agency (“NFE”) must neither solicit nor accept gratuities, favors, or
anything of monetary value from contractors or parties to subcontracts. However, NFE’s may set standards
for situations in which the financial interest is de minimus, not substantial, or the gift is an unsolicited item
of nominal value. 2 C.F.R. § 200.318(c)(1). d. Violations. The NFE’s written standards of conduct must
provide for disciplinary actions to be applied for violations of such standards by officers, employees, or
agents of the NFE. 2 C.F.R. § 200.318(c)(1). For example, the penalty for a NFE’s employee may be
dismissal, and the penalty for a contractor might be the termination of the contract.
Contractor Integrity
A contractor must have a satisfactory record of integrity and business ethics. Contractors that are debarred
or suspended, as described in and subject to the debarment and suspension regulations implementing
Executive Order 12549, Debarment and Suspension (1986) and Executive Order 12689, Debarment and
Suspension (1989) at 2 C.F.R. Part 180 and the Department of Homeland Security’s regulations at 2 C.F.R.
Part 3000 (Non-procurement Debarment and Suspension), must be rejected and cannot receive contract
awards at any level.
Notice of Legal Matters Affecting the Federal Government
In the event FTA or DOT funding is used by Participating Public Agency, Contractor agrees to:
1) The Contractor agrees that if a current or prospective legal matter that may affect the Federal
Government emerges, the Contractor shall promptly notify the Participating Public Agency of the
legal matter in accordance with 2 C.F.R. §§ 180.220 and 1200.220.
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2) The types of legal matters that require notification include, but are not limited to, a major dispute,
breach, default, litigation, or naming the Federal Government as a party to litigation or a legal
disagreement in any forum for any reason.
3) The Contractor further agrees to include the above clause in each subcontract, at every tier,
financed in whole or in part with Federal assistance provided by the FTA.
Public Policy
A contractor must comply with the public policies of the Federal Government and state, local government,
or tribal government. This includes, among other things, past and current compliance with the:
a. Equal opportunity and nondiscrimination laws
b. Five affirmative steps described at 2 C.F.R. § 200.321(b) for all subcontracting under contracts supported
by FEMA financial assistance; and FEMA Procurement Guidance June 21, 2016 Page IV- 7
c. Applicable prevailing wage laws, regulations, and executive orders
Affirmative Steps
For any subcontracting opportunities, Contractor must take the following Affirmative steps:
1. Placing qualified small and minority businesses and women's business enterprises on solicitation
lists;
2. Assuring that small and minority businesses, and women's business enterprises are solicited
whenever they are potential sources;
3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit
maximum participation by small and minority businesses, and women's business enterprises;
4. Establishing delivery schedules, where the requirement permits, which encourage participation by
small and minority businesses, and women's business enterprises; and
5. Using the services and assistance, as appropriate, of such organizations as the Small Business
Administration and the Minority Business Development Agency of the Department of Commerce.
Bid Guarantee
For proposals that are to include construction/reconstruction/renovation and related services, bids must be
accompanied by Certified or Cashier’s Check or an approved Bid Bond in the amount of not less than five
percent (5%) of the total bid. Surety shall provide a copy of the Power of Attorney authorizing the Executing
Agent the authority to execute the bid bond documents and bind the surety to the bid bond conditions. The
bid bond shall have a corporate Surety that is licensed to conduct business in the state of the lead agency
and authorized to underwrite bonds in the amount of the bid bond.
Prevailing Wage Requirements
When applicable, the awarded Contractor (s) and any and all subcontractor(s) agree to comply with all laws
regarding prevailing wage rates including the Davis-Bacon Act, applicable to this solicitation and/or
Participating Public Agencies. The Participating Public Agency shall notify the Contractor of the applicable
pricing/prevailing wage rates and must apply any local wage rates requested. The Contractor and any
subcontractor(s) shall comply with the prevailing wage rates set by the Participating Public Agency.
Federal Requirements
If products and services are issued in response to an emergency or disaster recovery the items below,
located in this FEMA Special Conditions section of the Federal Funds Certifications, are activated and
required when federal funding may be utilized.
2 C.F.R. § 200.326 and 2 C.F.R. Part 200, Appendix II, Required Contract Clauses
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1. CONTRACT REMEDIES
Contracts for more than the federal simplified acquisition threshold (SAT), the dollar amount below
which an NFE may purchase property or services using small purchase methods, currently set at
$250,000 for procurements made on or after June 20, 2018,4 must address administrative,
contractual, or legal remedies in instances where contractors violate or breach contract terms and
must provide for sanctions and penalties as appropriate.
1.1 Applicability
This contract provision is required for contracts over the SAT, currently set at $250,000 for
procurements made on or after June 20, 2018. Although not required for contracts at or below the
SAT, FEMA suggests including a remedies provision.
1.2 Additional Considerations
For FEMA’s Assistance to Firefighters Grant (AFG) Program, recipients must include a penalty
clause in all contracts for any AFG-funded vehicle, regardless of dollar amount. In that situation,
the contract must include a clause addressing that non-delivery by the contract’s specified date or
other vendor nonperformance will require a penalty of no less than $100 per day until such time
that the vehicle, compliant with the terms of the contract, has been accepted by the recipient. This
penalty clause should, however, account for force majeure or acts of God. AFG recipients should
refer to the applicable year’s Notice of Funding Opportunity (NOFO) for additional information,
which can be accessed at FEMA.gov.
2. TERMINATION FOR CAUSE AND CONVENIENCE
a. Standard. All contracts in excess of $10,000 must address termination for cause and for
convenience by the non-Federal entity, including the manner by which it will be effected
and the basis for settlement. See 2 C.F.R. Part 200, Appendix II(B).
b. Applicability. This requirement applies to all FEMA grant and cooperative agreement
programs.
3. EQUAL EMPLOYMENT OPPORTUNITY
When applicable:
a. Standard. Except as otherwise provided under 41 C.F.R. Part 60, all contracts that meet
the definition of “federally assisted construction contract” in 41 C.F.R.
§ 60-1.3 must include the equal opportunity clause provided under 41 C.F.R. § 60- 1.4(b),
in accordance with Executive Order 11246, Equal Employment Opportunity (30 Fed. Reg.
12319, 12935, 3 C.F.R. Part, 1964-1965 Comp., p.
339), as amended by Executive Order 11375, Amending Executive Order 11246 Relating
to Equal Employment Opportunity, and implementing regulations at 41
C.F.R. Part 60 (Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor). See 2 C.F.R. Part 200, Appendix II(C).
b. Key Definitions.
i. Federally Assisted Construction Contract. The regulation at 41 C.F.R. § 60-
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1.3 defines a “federally assisted construction contract” as any agreement or
modification thereof between any applicant and a person for construction work which
is paid for in whole or in part with funds obtained from the Government or borrowed
on the credit of the Government pursuant to any Federal program involving a grant,
contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal
program involving such grant, contract, loan, insurance, or guarantee, or any
application or modification thereof approved by the Government for a grant, contract,
loan, insurance, or guarantee under which the applicant itself participates in the
construction work.
ii. Construction Work. The regulation at 41 C.F.R. § 60-1.3 defines “construction work”
as the construction, rehabilitation, alteration, conversion, extension, demolition or
repair of buildings, highways, or other changes or improvements to real property,
including facilities providing utility services. The term also includes the supervision,
inspection, and other onsite functions incidental to the actual construction.
c. Applicability. This requirement applies to all FEMA grant and cooperative agreement
programs.
d. Required Language. The regulation at 41 C.F.R. Part 60-1.4(b) requires the insertion of
the following contract clause.
During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, sexual orientation, gender identity, or
national origin. The contractor will take affirmative action to ensure that applicants are
employed, and that employees are treated during employment without regard to their
race, color, religion, sex, sexual orientation, gender identity, or national origin. Such
action shall include, but not be limited to the following:
Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising;
layoff or termination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. The contractor agrees to post in conspicuous places,
available to employees and applicants for employment, notices to be provided setting
forth the provisions of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements for employees placed by or
on behalf of the contractor, state that all qualified applicants will receive consideration
for employment without regard to race, color, religion, sex, sexual orientation, gender
identity, or national origin.
(3) The contractor will not discharge or in any other manner discriminate against any
employee or applicant for employment because such employee or applicant has inquired
about, discussed, or disclosed the compensation of the employee or applicant or another
employee or applicant. This provision shall not apply to instances in which an employee
who has access to the compensation information of other employees or applicants as a
part of such employee's essential job functions discloses the compensation of such other
employees or applicants to individuals who do not otherwise have access to such
information, unless such disclosure is in response to a formal complaint or charge, in
furtherance of an investigation, proceeding, hearing, or action, including an investigation
conducted by the employer, or is consistent with the contractor's legal duty to furnish
information.
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(4) The contractor will send to each labor union or representative of workers with which
he has a collective bargaining agreement or other contract or understanding, a notice to
be provided advising the said labor union or workers' representatives of the contractor's
commitments under this section and shall post copies of the notice in conspicuous
places available to employees and applicants for employment.
(5) The contractor will comply with all provisions of Executive Order 11246 of September
24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
(6) The contractor will furnish all information and reports required by Executive Order
11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of
Labor, or pursuant thereto, and will permit access to his books, records, and accounts by
the administering agency and the Secretary of Labor for purposes of investigation to
ascertain compliance with such rules, regulations, and orders.
(7) In the event of the contractor's noncompliance with the nondiscrimination clauses of
this contract or with any of the said rules, regulations, or orders, this contract may be
canceled, terminated, or suspended in whole or in part and the contractor may be
declared ineligible for further Government contracts or federally assisted construction
contracts in accordance with procedures authorized in Executive Order 11246 of
September 24, 1965, and such other sanctions may be imposed and remedies invoked
as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or
order of the Secretary of Labor, or as otherwise provided by law.
(8) The contractor will include the portion of the sentence immediately preceding
paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or
purchase order unless exempted by rules, regulations, or orders of the Secretary of
Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965,
so that such provisions will be binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase order as the
administering agency may direct as a means of enforcing such provisions, including
sanctions for noncompliance:
Provided, however, that in the event a contractor becomes involved in, or is threatened
with, litigation with a subcontractor or vendor as a result of such direction by the
administering agency, the contractor may request the United States to enter into such
litigation to protect the interests of the United States.
The applicant further agrees that it will be bound by the above equal opportunity clause
with respect to its own employment practices when it participates in federally assisted
construction work: Provided, That if the applicant so participating is a State or local
government, the above equal opportunity clause is not applicable to any agency,
instrumentality or subdivision of such government which does not participate in work on
or under the contract.
The applicant agrees that it will assist and cooperate actively with the administering
agency and the Secretary of Labor in obtaining the compliance of contractors and
subcontractors with the equal opportunity clause and the rules, regulations, and relevant
orders of the Secretary of Labor, that it will furnish the administering agency and the
Secretary of Labor such information as they may require for the supervision of such
compliance, and that it will otherwise assist the administering agency in the discharge of
the agency's primary responsibility for securing compliance.
The applicant further agrees that it will refrain from entering into any contract or contract
modification subject to Executive Order 11246 of September 24, 1965, with a contractor
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debarred from, or who has not demonstrated eligibility for, Government contracts and
federally assisted construction contracts pursuant to the Executive Order and will carry
out such sanctions and penalties for violation of the equal opportunity clause as may be
imposed upon contractors and subcontractors by the administering agency or the
Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the
applicant agrees that if it fails or refuses to comply with these undertakings, the
administering agency may take any or all of the following actions: Cancel, terminate, or
suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from
extending any further assistance to the applicant under the program with respect to
which the failure or refund occurred until satisfactory assurance of future compliance has
been received from such applicant; and refer the case to the Department of Justice for
appropriate legal proceedings.
4. DAVIS-BACON ACT
a. Standard. All prime construction contracts in excess of $2,000 awarded by non- Federal
entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. §§ 3141-
3144 and 3146-3148) as supplemented by Department of Labor regulations at 29 C.F.R. Part
5 (Labor Standards Provisions Applicable to Contracts Covering Federally Financed and
Assisted Construction). See 2 C.F.R. Part 200, Appendix II(D). In accordance with the statute,
contractors must be required to pay wages to laborers and mechanics at a rate not less than
the prevailing wages specified in a wage determination made by the Secretary of Labor. In
addition, contractors must be required to pay wages not less than once a week.
b. Applicability. The Davis-Bacon Act applies to the Emergency Management Preparedness
Grant Program, Homeland Security Grant Program, Nonprofit Security Grant Program, Tribal
Homeland Security Grant Program, Port Security Grant Program, and Transit Security Grant
Program.
c. Requirements. If applicable, the non-federal entity must do the following:
i. The non-Federal entity must place a copy of the current prevailing wage
determination issued by the Department of Labor in each solicitation. The decision
to award a contract or subcontract must be conditioned upon the acceptance of
the wage determination. The non-Federal entity must report all suspected or
reported violations to the Federal awarding agency.
ii. Additionally, pursuant 2 C.F.R. Part 200, Appendix II(D), contracts subject to the
Davis-Bacon Act, must also include a provision for compliance with the Copeland
“Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor
regulations at 29 C.F.R. Part 3 (Contractors and Subcontractors on Public
Building or Public Work Financed in Whole or in Part by Loans or Grants from the
United States). The Copeland Anti- Kickback Act provides that each contractor or
subrecipient must be prohibited from inducing, by any means, any person
employed in the construction, completion, or repair of public work, to give up any
part of the compensation to which he or she is otherwise entitled. The non-
Federal entity must report all suspected or reported violations to FEMA.
iii. Include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-
3144, and 3146-3148) as supplemented by Department of Labor regulations (29
CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering
Federally Financed and Assisted Construction”).
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Suggested Language. The following provides a sample contract clause:
Compliance with the Davis-Bacon Act.
a. All transactions regarding this contract shall be done in
compliance with the Davis-Bacon Act (40 U.S.C. 3141- 3144, and
3146-3148) and the requirements of 29 C.F.R. pt. 5 as may be
applicable. The contractor shall comply with 40 U.S.C. 3141-
3144, and 3146-3148 and the requirements of 29 C.F.R. pt. 5 as
applicable.
b. Contractors are required to pay wages to laborers and mechanics
at a rate not less than the prevailing wages specified in a wage
determination made by the Secretary of Labor.
c. Additionally, contractors are required to pay wages not less than
once a week.
5. COPELAND ANTI-KICKBACK ACT
a. Standard. Recipient and subrecipient contracts must include a provision for compliance with
the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor
regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public
Work Financed in Whole or in Part by Loans or Grants from the United States”).
b. Applicability. This requirement applies to all contracts for construction or repair work above
$2,000 in situations where the Davis-Bacon Act also applies. It DOES NOT apply to the FEMA
Public Assistance Program.
c. Requirements. If applicable, the non-federal entity must include a provision for compliance
with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department
of Labor regulations at 29 C.F.R. Part 3 (Contractors and Subcontractors on Public Building
or Public Work Financed in Whole or in Part by Loans or Grants from the United States). Each
contractor or subrecipient must be prohibited from inducing, by any means, any person
employed in the construction, completion, or repair of public work, to give up any part of the
compensation to which he or she is otherwise entitled. The non-Federal entity must report all
suspected or reported violations to FEMA. Additionally, in accordance with the regulation,
each contractor and subcontractor must furnish each week a statement with respect to the
wages paid each of its employees engaged in work covered by the Copeland Anti-Kickback
Act and the Davis Bacon Act during the preceding weekly payroll period. The report shall be
delivered by the contractor or subcontractor, within seven days after the regular payment
date of the payroll period, to a representative of a Federal or State agency in charge at the
site of the building or work.
Sample Language. The following provides a sample contract clause:
Compliance with the Copeland “Anti-Kickback” Act.
a. Contractor. The contractor shall comply with 18 U.S.C. § 874, 40 U.S.C.
§ 3145, and the requirements of 29 C.F.R. pt. 3 as may be applicable,
which are incorporated by reference into this contract.
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b. Subcontracts. The contractor or subcontractor shall insert in any
subcontracts the clause above and such other clauses as FEMA may
by appropriate instructions require, and also a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts.
The prime contractor shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all of these contract
clauses.
c. Breach. A breach of the contract clauses above may be grounds for
termination of the contract, and for debarment as a contractor and
subcontractor as provided in 29 C.F.R. §5.12.”
6. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT
a. Standard. Where applicable (see 40 U.S.C. §§ 3701-3708), all contracts awarded by the
non-Federal entity in excess of $100,000 that involve the employment of mechanics or
laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as
supplemented by Department of Labor regulations at 29 C.F.R. Part 5. See 2 C.F.R. Part
200, Appendix II(E). Under 40 U.S.C. § 3702, each contractor must be required to
compute the wages of every mechanic and laborer on the basis of a standard work week
of 40 hours. Work in excess of the standard work week is permissible provided that the
worker is compensated at a rate of not less than one and a half times the basic rate of
pay for all hours worked in excess of 40 hours in the work week. Further, no laborer or
mechanic must be required to work in surroundings or under working conditions which
are unsanitary, hazardous, or dangerous.
b. Applicability. This requirement applies to all FEMA contracts awarded by the non- federal
entity in excess of $100,000 under grant and cooperative agreement programs that involve
the employment of mechanics or laborers. It is applicable to construction work. These
requirements do not apply to the purchase of supplies or materials or articles ordinarily
available on the open market, or contracts for transportation or transmission of
intelligence.
c. Suggested Language. The regulation at 29 C.F.R. § 5.5(b) provides contract clause
language concerning compliance with the Contract Work Hours and Safety Standards
Act. FEMA suggests including the following contract clause:
Compliance with the Contract Work Hours and Safety Standards Act.
(1) Overtime requirements. No contractor or subcontractor contracting for any part of
the contract work which may require or involve the employment of laborers or mechanics
shall require or permit any such laborer or mechanic in any workweek in which he or she
is employed on such work to work in excess of forty hours in such workweek unless such
laborer or mechanic receives compensation at a rate not less than one and one-half
times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation
of the clause set forth in paragraph (b)(1) of this section the contractor and any
subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such
contractor and subcontractor shall be liable to the United States (in the case of work
done under contract for the District of Columbia or a territory, to such District or to such
territory), for liquidated damages. Such liquidated damages shall be computed with
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respect to each individual laborer or mechanic, including watchmen and guards,
employed in violation of the clause set forth in paragraph (b)(1) of this section, in the sum
of
$27 for each calendar day on which such individual was required or permitted to work in
excess of the standard workweek of forty hours without payment of the overtime wages
required by the clause set forth in paragraph (b)(1) of this section.
(3) Withholding for unpaid wages and liquidated damages. The Federal agency or
loan/grant recipient shall upon its own action or upon written request of an authorized
representative of the Department of Labor withhold or cause to be withheld, from any
moneys payable on account of work performed by the contractor or subcontractor under
any such contract or any other Federal contract with the same prime contractor, or any
other federally-assisted contract subject to the Contract Work Hours and Safety
Standards Act, which is held by the same prime contractor, such sums as may be
determined to be necessary to satisfy any liabilities of such contractor or subcontractor
for unpaid wages and liquidated damages as provided in the clause set forth in
paragraph (b)(2) of this section.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the
clauses set forth in paragraph (b)(1) through (4) of this section and also a clause requiring
the subcontractors to include these clauses in any lower tier subcontracts. The prime
contractor shall be responsible for compliance by any subcontractor or lower tier
subcontractor with the clauses set forth in paragraphs (b)(1) through (4) of this section.
7. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT
a. Standard. If the FEMA award meets the definition of “funding agreement” under 37C.F.R.
§ 401.2(a) and the non-Federal entity wishes to enter into a contract with a small business
firm or nonprofit organization regarding the substitution of parties, assignment or
performance of experimental, developmental, or research work under that “funding
agreement,” the non- Federal entity must comply with the requirements of 37 C.F.R. Part
401 (Rights to Inventions Made by Nonprofit Organizations and Small Business Firms
Under Government Grants, Contracts and Cooperative Agreements), and any
implementing regulations issued by FEMA. See 2 C.F.R. Part 200, Appendix II(F).
b. Applicability. This requirement applies to “funding agreements,” but it DOES NOT apply
to the Public Assistance, Hazard Mitigation Grant Program, Fire Management Assistance
Grant Program, Crisis Counseling Assistance and Training Grant Program, Disaster Case
Management Grant Program, and Federal Assistance to Individuals and Households –
Other Needs Assistance Grant Program, as FEMA awards under these programs do not
meet the definition of “funding agreement.”
c. Funding Agreements Definition. The regulation at 37 C.F.R. § 401.2(a) defines “funding
agreement” as any contract, grant, or cooperative agreement entered into between any
Federal agency, other than the Tennessee Valley Authority, and any contractor for the
performance of experimental, developmental, or research work funded in whole or in part
by the Federal government. This term also includes any assignment, substitution of
parties, or subcontract of any type entered into for the performance of experimental,
developmental, or research work under a funding agreement as defined in the first
sentence of this paragraph.
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8. CLEAN AIR ACT AND THE FEDERAL WATER POLLUTION CONTROL ACT
a. Standard. If applicable, contracts must contain a provision that requires the contractor to
agree to comply with all applicable standards, orders, or regulations issued pursuant to
the Clean Air Act (42 U.S.C. §§ 7401-7671q.) and the Federal Water Pollution Control Act
as amended (33 U.S.C. §§ 1251-1387). Violations must be reported to FEMA and the
Regional Office of the Environmental Protection Agency. See 2 C.F.R. Part 200,
Appendix II(G).
b. Applicability. This requirement applies to contracts awarded by a non-federal entity of
amounts in excess of $150,000 under a federal grant.
c. Suggested Language. The following provides a sample contract clause.
Clean Air Act
1. The contractor agrees to comply with all applicable standards, orders or
regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C.
§ 7401 et seq.
2. The contractor agrees to report each violation to the Participating Public
Agency and understands and agrees that the Participating Public Agency
will, in turn, report each violation as required to assure notification to the
Federal Emergency Management Agency, and the appropriate
Environmental Protection Agency Regional Office.
3. The contractor agrees to include these requirements in each subcontract
exceeding $150,000 financed in whole or in part with Federal assistance
provided by FEMA.
Federal Water Pollution Control Act
1. The contractor agrees to comply with all applicable standards, orders, or
regulations issued pursuant to the Federal Water Pollution Control Act, as
amended, 33 U.S.C. 1251 et seq.
2. The contractor agrees to report each violation to the Participating Public
Agency and understands and agrees that the Participating Public Agency
will, in turn, report each violation as required to assure notification to the
Federal Emergency Management Agency, and the appropriate
Environmental Protection Agency Regional Office.
3. The contractor agrees to include these requirements in each subcontract
exceeding $150,000 financed in whole or in part with Federal assistance
provided by FEMA.
9. DEBARMENT AND SUSPENSION
a. Standard. Non-Federal entities and contractors are subject to the debarment and
suspension regulations implementing Executive Order 12549, Debarment and
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Suspension (1986) and Executive Order 12689, Debarment and Suspension (1989) at 2
C.F.R. Part 180 and the Department of Homeland Security’s regulations at 2 C.F.R. Part
3000 (Non-procurement Debarment and Suspension).
b. Applicability. This requirement applies to all FEMA grant and cooperative
agreement programs.
c. Requirements.
i. These regulations restrict awards, subawards, and contracts with certain parties
that are debarred, suspended, or otherwise excluded from or ineligible for
participation in Federal assistance programs and activities. See 2 C.F.R. Part 200,
Appendix II(H); and 2 C.F.R. § 200.213. A contract award must not be made to
parties listed in the SAM Exclusions. SAM Exclusions is the list maintained by the
General Services Administration that contains the names of parties debarred,
suspended, or otherwise excluded by agencies, as well as parties declared
ineligible under statutory or regulatory authority other than Executive Order 12549.
SAM exclusions can be accessed at www.sam.gov. See 2 C.F.R. § 180.530.
ii. In general, an “excluded” party cannot receive a Federal grant award or a contract
within the meaning of a “covered transaction,” to include subawards and
subcontracts. This includes parties that receive Federal funding indirectly, such
as contractors to recipients and subrecipients. The key to the exclusion is whether
there is a “covered transaction,” which is any non-procurement transaction
(unless excepted) at either a “primary” or “secondary” tier. Although “covered
transactions” do not include contracts awarded by the Federal Government for
purposes of the non-procurement common rule and DHS’s implementing
regulations, it does include some contracts awarded by recipients and
subrecipients.
iii. Specifically, a covered transaction includes the following contracts for goods or
services:
1. The contract is awarded by a recipient or subrecipient in the amount of at
least $25,000.
2. The contract requires the approval of FEMA, regardless of amount.
3. The contract is for federally-required audit services.
4. A subcontract is also a covered transaction if it is awarded by the
contractor of a recipient or subrecipient and requires either the approval of
FEMA or is in excess of $25,000.
d. Suggested Language. The following provides a debarment and suspension clause. It
incorporates an optional method of verifying that contractors are not excluded or
disqualified.
Suspension and Debarment
(1) This contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R.
pt. 3000. As such, the contractor is required to verify that none of the contractor’s
principals (defined at 2 C.F.R. § 180.995) or its affiliates (defined at 2 C.F.R. §
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180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2
C.F.R. § 180.935).
(2) The contractor must comply with 2 C.F.R. pt. 180, subpart C and2 C.F.R. pt. 3000,
subpart C, and must include a requirement to comply with these regulations in any
lower tier covered transaction it enters into.
(3) This certification is a material representation of fact relied upon by the Participating
Public Agency. If it is later determined that the contractor did not comply with 2
C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies
available to the Participating Public Agency, the Federal Government may pursue
available remedies, including but not limited to suspension and/or debarment.
(4) The bidder or proposer agrees to comply with the requirements of 2 C.F.R. pt.
180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer is valid and
throughout the period of any contract that may arise from this offer. The bidder or
proposer further agrees to include a provision requiring such compliance in its
lower tier covered transactions.
10. BYRD ANTI-LOBBYING AMENDMENT
a. Standard. Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to
influence an officer or employee of any agency, a Member of Congress, officer or
employee of Congress, or an employee of a Member of Congress in connection with
obtaining any Federal contract, grant or any other award covered by 31 U.S.C. § 1352.
FEMA’s regulation at 44 C.F.R. Part 18 implements the requirements of 31 U.S.C. § 1352
and provides, in Appendix A to Part 18, a copy of the certification that is required to be
completed by each entity as described in 31 U.S.C. § 1352. Each tier must also disclose
any lobbying with non-Federal funds that takes place in connection with obtaining any
Federal award. Such disclosures are forwarded from tier to tier up to the Federal
awarding agency.
b. Applicability. This requirement applies to all FEMA grant and cooperative agreement
programs. Contractors that apply or bid for a contract of $100,000 or more under a federal
grant must file the required certification. See 2 C.F.R. Part 200, Appendix II(I); 31 U.S.C.
§ 1352; and 44 C.F.R. Part 18.
c. Suggested Language.
Byrd Anti-Lobbying Amendment, 31 U.S.C. § 1352 (as amended)
Contractors who apply or bid for an award of $100,000 or more shall file the required
certification. Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to
influence an officer or employee of any agency, a Member of Congress, officer or
employee of Congress, or an employee of a Member of Congress in connection with
obtaining any Federal contract, grant, or any other award covered by 31 U.S.C. § 1352.
Each tier shall also disclose any lobbying with non-Federal funds that takes place in
connection with obtaining any Federal award. Such disclosures are forwarded from tier
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to tier up to the recipient who in turn will forward the certification(s) to the awarding
agency.
d. Required Certification. If applicable, contractors must sign and submit to the non-federal
entity the following certification.
APPENDIX A, 44 C.F.R. PART 18 – CERTIFICATION REGARDING LOBBYING
Certification for Contracts, Grants, Loans, and Cooperative Agreements
The undersigned certifies, to the best of his or her knowledge and belief, that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or
employee of an agency, a Member of Congress, an officer or employee of Congress,
or an employee of a Member of Congress in connection with the awarding of any
Federal contract, the making of any Federal grant, the making of any Federal loan,
the entering into of any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement.
2. If any funds other than Federal appropriated funds have been paid or will be paid to
any person for influencing or attempting to influence an officer or employee of any
agency, a Member of Congress, an officer or employee of Congress, or an employee
of a Member of Congress in connection with this Federal contract, grant, loan, or
cooperative agreement, the undersigned shall complete and submit Standard Form-
LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
3. The undersigned shall require that the language of this certification be included in
the award documents for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans, and cooperative agreements) and that
all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352, title
31, U.S. Code. Any person who fails to file the required certification shall be subject to a
civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
The Contractor, Carrier Corporation , certifies or affirms the truthfulness and
accuracy of each statement of its certification and disclosure, if any. In addition, the
Contractor understands and agrees that the provisions of 31 U.S.C. Chap. 38,
Administrative Remedies for False Claims and Statements, apply to this certification and
disclosure, if any.
Signature of Contractor’s Authorized Official
Joe Ison, Strategic Accounts Manager
Name and Title of Contractor’s Authorized Official
10/10/2024
Date
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11. PROCUREMENT OF RECOVERED MATERIALS
a. Standard. A non-Federal entity that is a state agency or agency of a political subdivision of a state
and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended
by the Resource Conservation and Recovery Act. See 2 C.F.R. Part 200, Appendix II(J); and 2
C.F.R. § 200.322.
b. Applicability. This requirement applies to all contracts awarded by a non- federal entity under FEMA
grant and cooperative agreement programs.
c. Requirements. The requirements of Section 6002 include procuring only items designated in
guidelines of the EPA at 40 C.F.R. Part 247 that contain the highest percentage of recovered
materials practicable, consistent with maintaining a satisfactory level of competition, where the
purchase price of the item exceeds
$10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000;
procuring solid waste management services in a manner that maximizes energy and resource
recovery; and establishing an affirmative procurement program for procurement of recovered
materials identified in the EPA guidelines.
d. Suggested Language.
i.
In the performance of this contract, the Contractor shall make maximum use of products
containing recovered materials that are EPA-designated items unless the product cannot
be acquired—
1. Competitively within a timeframe providing for compliance with the contract performance schedule;
2. Meeting contract performance requirements; or
3. At a reasonable price.
ii. Information about this requirement, along with the list of EPA- designated items, is
available at EPA’s Comprehensive Procurement Guidelines web site,
https://www.epa.gov/smm/comprehensive-procurement-guideline-cpg-program.
iii. The Contractor also agrees to comply with all other applicable requirements of Section
6002 of the Solid Waste Disposal Act.”
12. DOMESTIC PREFERENCES FOR PROCUREMENTS
As appropriate, and to the extent consistent with law, CONTRACTOR should, to the greatest extent
practicable under a federal award, provide a preference for the purchase, acquisition, or use of goods,
products or materials produced in the United States. This includes, but is not limited to, iron, aluminum, steel,
cement, and other manufactured products.
Applicability For purchases in support of FEMA declarations and awards issued on or after November 12,
2020, all FEMA recipients and subrecipients are required to include in all contracts and purchase orders for
work or products a contract provision encouraging domestic preference for procurements.
Domestic Preference for Procurements As appropriate, and to the extent consistent with law, the contractor
should, to the greatest extent practicable, provide a preference for the purchase, acquisition, or use of goods,
products, or materials produced in the United States. This includes, but is not limited to iron, aluminum, steel,
cement, and other manufactured products. For purposes of this clause: Produced in the United States means,
for iron and steel products, that all manufacturing processes, from the initial melting stage through the
application of coatings, occurred in the United States. Manufactured products mean items and construction
materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based
products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and
lumber.”
13. ACCESS TO RECORDS
a. Standard. All recipients, subrecipients, successors, transferees, and assignees must acknowledge
and agree to comply with applicable provisions governing DHS access to records, accounts,
documents, information, facilities, and staff. Recipients must give DHS/FEMA access to, and the
right to examine and copy, records, accounts, and other documents and sources of information
related to the federal financial assistance award and permit access to facilities, personnel, and other
individuals and information as may be necessary, as required by DHS regulations and other
applicable laws or program guidance. See DHS Standard Terms and Conditions: Version 8.1 (2018).
Additionally, Section 1225 of the Disaster Recovery Reform Act of 2018 prohibits FEMA from
providing reimbursement to any state, local, tribal, or territorial government, or private non-profit for
activities made pursuant to a contract that purports to prohibit audits or internal reviews by the FEMA
administrator or Comptroller General.
Access to Records. The following access to records requirements apply to this contract:
i.The Contractor agrees to provide Participating Public Agency, the FEMA Administrator, the
Comptroller General of the United States, or any of their authorized representatives access
to any books, documents, papers, and records of the Contractor which are directly pertinent
to this contract for the purposes of making audits, examinations, excerpts, and transcriptions.
ii.The Contractor agrees to permit any of the foregoing parties to reproduce by any means
whatsoever or to copy excerpts and transcriptions as reasonably needed.
iii. The Contractor agrees to provide the FEMA Administrator or his authorized representatives
access to construction or other work sites pertaining to the work being completed under the
contract.
iv.In compliance with the Disaster Recovery Act of 2018, the Participating Public Agency and
the Contractor acknowledge and agree that no language in this contract is intended to
prohibit audits or internal reviews by the FEMA Administrator or the Comptroller General of
the United States.
14. CHANGES
a. Standard. To be eligible for FEMA assistance under the non-Federal entity’s FEMA grant or
cooperative agreement, the cost of the change, modification, change order, or constructive change
must be allowable, allocable, within the scope of its grant or cooperative agreement, and reasonable
for the completion of project scope.
b. Applicability. FEMA recommends, therefore, that a non-Federal entity include a changes clause in its
contract that describes how, if at all, changes can be made by either party to alter the method, price,
or schedule of the work without breaching the contract. The language of the clause may differ
depending on the nature of the contract and the end-item procured.
15. DHS SEAL, LOGO, AND FLAGS
a. Standard. Recipients must obtain permission prior to using the DHS seal(s), logos, crests, or
reproductions of flags or likenesses of DHS agency officials. See DHS Standard Terms and
Conditions: Version 8.1 (2018).
b. Applicability. FEMA recommends that all non-Federal entities place in their contracts a provision that
a contractor shall not use the DHS seal(s), logos, crests, or reproductions of flags or likenesses of
DHS agency officials without specific FEMA pre-approval.
c. “The contractor shall not use the DHS seal(s), logos, crests, or reproductions of flags or likenesses
of DHS agency officials without specific FEMA pre-approval.
16. COMPLIANCE WITH FEDERAL LAW, REGULATIONS, AND EXECUTIVE ORDERS
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a. Standard. The recipient and its contractors are required to comply with all Federal laws, regulations,
and executive orders.
b. Applicability. FEMA recommends that all non-Federal entities place into their contracts an
acknowledgement that FEMA financial assistance will be used to fund the contract along with the
requirement that the contractor will comply with all applicable Federal law, regulations, executive
orders, and FEMA policies, procedures, and directives.
c. “This is an acknowledgement that FEMA financial assistance will be used to fund all or a portion of
the contract. The contractor will comply with all applicable Federal law, regulations, executive orders,
FEMA policies, procedures, and directives.”
17. NO OBLIGATION BY FEDERAL GOVERNMENT
a. Standard. FEMA is not a party to any transaction between the recipient and its contractor. FEMA is
not subject to any obligations or liable to any party for any matter relating to the contract.
b. Applicability. FEMA recommends that the non-Federal entity include a provision in its contract that
states that the Federal Government is not a party to the contract and is not subject to any obligations
or liabilities to the non-Federal entity, contractor, or any other party pertaining to any matter resulting
from the contract.
c. “The Federal Government is not a party to this contract and is not subject to any obligations or
liabilities to the non-Federal entity, contractor, or any other party pertaining to any matter resulting
from the contract.”
18. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS
a. Standard. Recipients must comply with the requirements of The False Claims Act (31 U.S.C. §§ 3729-
3733) which prohibits the submission of false or
fraudulent claims for payment to the federal government. See DHS Standard Terms and
Conditions: Version 8.1 (2018); and 31 U.S.C. §§ 3801-3812, which details the administrative
remedies for false claims and statements made. The non-Federal entity must include a provision
in its contract that the contractor acknowledges that 31 U.S.C. Chap. 38 (Administrative Remedies
for False Claims and Statements) applies to its actions pertaining to the contract.
b. Applicability. FEMA recommends that the non-Federal entity include a provision in its contract that
the contractor acknowledges that 31 U.S.C. Chap. 38 (Administrative Remedies for False Claims and
Statements) applies to its actions pertaining to the contract.
c. “The Contractor acknowledges that 31 U.S.C. Chap. 38 (Administrative Remedies for False Claims
and Statements) applies to the Contractor’s actions pertaining to this contract.”
d. In the event FTA or DOT funding is used by a Participating Public Agency, Contractor further
acknowledges U.S. DOT regulations, “Program Fraud Civil Remedies,” 49 CFR Part 31, and apply
to its actions pertaining to this Contract. Upon execution of the underlying Contract, Contractor
certifies or affirms the truthfulness and accuracy of any statement it has made, it makes, it may make,
or causes to me made, pertaining to the underlying Contract or the FTA assisted project for which
this Contract Work is being performed.
In addition to other penalties that may be applicable, Contractor further acknowledges that if it makes,
or causes to be made, a false, fictitious, or fraudulent claim, statement, submission, or certification,
the Federal Government reserves the right to impose the penalties of the Program Fraud Civil
Remedies Act of 1986 on Contractor to the extent the Federal Government deems appropriate.
Contractor also acknowledges that if it makes, or causes to me made, a false, fictitious, or fraudulent
claim, statement, submission, or certification to the Federal Government under a contract connected
with a project that is financed in whole or in part with Federal assistance originally awarded by FTA
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under the authority of 49 U.S.C. § 5307, the Government reserves the right to impose the penalties
of 18 U.S.C. § 1001 and 49 U.S.C. § 5307 (n)(1) on the Contractor, to the extent the Federal
Government deems appropriate.
Contractor agrees to include the above clauses in each subcontract financed in whole or in part with
Federal assistance provided by FTA. It is further agreed that the clauses shall not be modified, except
to identify the subcontractor who will be subject to the provisions.
Offeror agrees to comply with all terms and conditions outlined in the FEMA Special Conditions section
of this solicitation.
Offeror’s Name: ______________________________________________
Carrier Corp
Address, City, State, and Zip Code:
_____________________________________________________________________________
13995 Pasteur Blvd, Palm Beach Gardens, FL 33418
Phone Number: ________________________
501-529-9688 Fax Number: ______________________________
N/A
Printed Name and Title of Authorized Representative:
____________________________________________________________
Joe Ison, Strategic Accounts Manager
Email Address: _____________________________________________
joseph.e.ison@carrier.com
Signature of Authorized Representative: ____________________________________
Date: ________________________________
10/10/2024
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Exhibit G
New Jersey Business Compliance
NEW JERSEY BUSINESS COMPLIANCE
Suppliers intending to do business in the State of New Jersey must comply with policies and procedures
required under New Jersey statues. All offerors submitting proposals must complete the following forms
specific to the State of New Jersey. Completed forms should be submitted with the offeror’s response to
the RFP. Failure to complete the New Jersey packet will impact OMNIA Partners’ ability to promote the
Master Agreement in the State of New Jersey.
DOC #1 Ownership Disclosure Form
DOC #2 Non-Collusion Affidavit
DOC #3 Affirmative Action Affidavit
DOC #4 Political Contribution Disclosure Form
DOC #5 Stockholder Disclosure Certification
DOC #6 Disclosure of Investment Activities in Iran
DOC #7 Certification of Non‐Involvement in Prohibited Activities in Russia or Belarus
DOC #8 New Jersey Business Registration Certificate
DOC #9 EEOAA Evidence
DOC #10 MacBride Principals Form
New Jersey suppliers are required to comply with the following New Jersey statutes when applicable:
• all anti-discrimination laws, including those contained in N.J.S.A. 10:2-1 through N.J.S.A. 10:2-
14, N.J.S.A. 10:5-1, and N.J.S.A. 10:5-31 through 10:5-38;
• Prevailing Wage Act, N.J.S.A. 34:11-56.26, for all contracts within the contemplation of the Act;
• Public Works Contractor Registration Act, N.J.S.A. 34:11-56.26; and
• Bid and Performance Security, as required by the applicable municipal or state statutes.
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DOC #I
STATEMENT OF OWNERSHIP DISCLOSURE
N.J.S.A. 52:25-24.2 (P.L. 1977, c.33, as amended by P.L. 2016, c.43)
This statement shall be completed, certified to, and included with all bid and proposal submissions. Failure
to submit the required information is cause for automatic rejection of the bid or proposal.
Name of Organization:_ cc_ o[cue
Organization Address:_ _[oo_lel¿Lase;se Snot le__go90/
Part I Check the box that represents the type of business organization:
Csole Proprietorship (skip Parts II and Ill, execute certification in Part IV)
[k.Promt corporation (skip Parts II and III, execute certification in Part IV)
13 For-Profit Corporation (any type) □ Limited Liability Company (LLC)
□ Partnership □ Limited Partnership □ Limited Liability Partnership (LLP)
[ower (be specific):
Part II
□ The list below contains the names and addresses of all stockholders in the corporation
who own 10 percent or more of its stock, of any class, or of all individual partners in the
partnership who own a 10 percent or greater interest therein, or of all members in the
limited liability company who own a 10 percent or greater interest therein, as the case
may be. (COMPLETE THE LIST BELOW IN THIS SECTION)
OR
~ No one stockholder in the corporation owns 10 percent or more of its stock, of any class,
or no individual partner in the partnership owns a 10 percent or greater interest therein, or
no member in the limited liability company owns a 10 percent or greater interest therein,
as the case may be. (SKIP TO PART IV)
(Please attach additional sheets if more space is needed):
Name of Individual or Business Entity Home Address (for Individuals) or Business Address
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Part III DISCLOSURE OF 10% OR GREATER OWNERSHIP IN THE STOCKHOLDERS,
PARTNERS OR LLC MEMBERS LISTED IN PART II
If a bidder has a direct or indirect parent entity which is publicly traded, and any person
holds a 1 O percent or greater beneficial interest in the publicly traded parent entity as of the
last annual federal Security and Exchange Commission (SEC) or foreign equivalent filing,
ownership disclosure can be met by providing links to the website(s) containing the last annual
filing(s) with the federal Securities and Exchange Commission (or foreign equivalent) that contain
the name and address of each person holding a 10% or greater beneficial interest in the publicly
traded parent entity, along with the relevant page numbers of the filing(s) that contain the
information on each such person. Attach additional sheets if more space is needed.
Website (URL) containing the last annual SEC (or foreign equivalent) filing Page #'s
Please list the names and addresses of each stockholder, partner or member owning a 10 percent
or greater interest in any corresponding corporation, partnership and/or limited liability company
(LLC) listed in Part II other than for any publicly traded parent entities referenced above. The
disclosure shall be continued until names and addresses of every noncorporate stockholder, and
individual partner, and member exceeding the 10 percent ownership criteria established pursuant to
N.J.S.A. 52:25-24.2 has been listed. Attach additional sheets if more space is needed.
Stockholder/Partner/Member and Corresponding Home Address (for Individuals) or Business Address
Entity Listed in Part II
Part IV Certification
I, being duly sworn upon my oath, hereby represent that the foregoing information and any attachments thereto to the
best of my knowledge are true and complete. I acknowledge: that I am authorized to execute this certification on
behalf of the bidder/proposer; that the <name of contracting unit> is relying on the information contained herein and
that I am under a continuing obligation from the date of this certification through the completion of any contracts with
<type of contracting unit> to notify the <type of contracting unit> in writing of any changes to the information
contained herein; that I am aware that it is a criminal offense to make a false statement or misrepresentation in this
certification, and if I do so, I am subject to criminal prosecution under the law and that it will constitute a material
breach of my agreement(s) with the, permitting the <type of contracting unit> to declare any contract(s) resulting
from this certification void and unenforceable.
Full Name (Print): Tile: S
Signature: ate: [ v
DOC#2
Version June 26. 2024
NON-COLLUSION AFFIDAVIT
STANDARD BID DOCUMENT REFERENCE
Reference: VII-H
Name of Form: NON-COLLUSION AFFIDAVIT
No specific statutory reference
Statutory Reference:
State Statutory Reference N.J.S.A. 52:34-15
Instructions Reference: Statutory and Other Requirements VII-H
The Owner’s use of this form is optional. It is used to ensure that
the bidder has not participated in any collusion with any other
Description:
bidder or Owner representative or otherwise taken any action in
restraint of free and competitive bidding.
Version June 26, 2024
NON-COLLUSION AFFIDA VIT
State of Nef ersey,
County of 'a5i ss:
• /e rauao in key
". a
residing
i5.« egea.
being duly sworn according to law on my oath depose and say that:
srais
1am es
Siu6nj (tile or
ofhe rm or Cr/1«,et
i
(name of fr)
_________________ the bidder making this Proposal for the bid
entitled n,a (title of bid proposal)
, and that I executed the said proposal with
full authority to do so that said bidder has not, directly or indirectly entered into any agreement, participated in
any collusion, or otherwise taken any action in restraint of free, competitive bidding in connection with the
above named project; and that all statements contained in said proposal and in this affidavit are true and
correct, and made with full knowledge that the rn çe9 relies upon
the truth of the statements contained in said Proposal
(name of contracting unit)
and in the statements contained in this affidavit in awarding the contract for the said project.
I further warrant that no person or selling agency has been employed or retained to solicit or secure such
contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee,
except bona fide employees or bona fide established commercial or selling agencies maintained by
Cv. o?(
,
±ls-"
Subscribed and sworn to
before me this day
Don@m. Csant
(Type or print name of affiant under signature)
Notary public of [ ÜJ vs
My Commission expires} -l202g
(Seal)
DONNA GRISATI
Notary Public - State of New Jersey
My Commission Expires Fe 11, 2026
Version June 26. 2024
DOC#3
AFFIRMATIVE ACTION AFFIDAVIT
(P.L. 1975, C.127)
(re
lo.„s. r ., T o2alt
Company Name: Coch.of'e
sr«e (ee
cits. sate. zi code: __ _Ar >2i
Proposal Certification:
Indicate below company's compliance with New Jersey Affinnative Action regulations. Company's
proposal will be accepted even if company is not in compliance at this time. No contract and/or purchase
order may be issued, however, until all Affirmative Action requirements are met.
Required Affirmative Action Evidence:
Procurement, Professional & Service Contracts (Exhibit A)
Vendors must submit with proposal:
I. A photocopy of a valid letter that the contractor is operating under an existing Federally
approved or sanctioned affinnative action program (good for one year from the date of the
letter);
OR
2. A photocopy of a Certificate of Employee Infonnation Report approval, issued in accordance
with N.J.A.C. 17:27-4;
OR
3. A photocopy of an Employee Infonnation Report (Form AA302) provided by the Division of
Contract Compliance and Equal Employment Opportunity in Public Contracts and distributed
to the public agency to be completed by the contractor in accordance with N.J.A.C. 17:27-4.
Public Work- Over $50,000 Total Project Cost:
A. No approved Federal or New Jersey Affinnative Action Plan. We will complete Report Fann
AA20 l. A project contract ID number will be assigned to your finn upon receipt of the completed
Initial Project Workforce Report (AA20 I) for this contract.
B. Approved Federal or New Jersey Plan certificate enclosed
Ifurther certify that the statements and information contained herein, are complete and correct to the best
ofmy knowledge and belief
l /22é
Date
Version June 26. 2024
DOC #3, continued
P.L. 1995, c. 127 (N.J.A.C. 17:27)
MANDATORY AFFIRMATIVE ACTION LANGUAGE
PROCUREMENT, PROFESSIONAL AND SERVICE
CONTRACTS
During the pcrfonnancc of this contract, the contractor agrees as follows:
The contractor or subcontractor, where applicable, will not discriminate against any employee or applicant for employment
because of age, race, creed, color, national origin, ancestry, marital status, sex, affectional or sexual orientation. The contractor
will take affirmative action to ensure that such applicants arc recruited and employed, and that employees arc treated during
employment, without regard to their age, race, creed, color, national origin, ancestry, marital status, sex, affcctional or sexual
orientation. Such action shall include, but not be limited to the following: employment, upgrading, demotion. or transfer:
recruitment or recruitment advertising: layoff or termination; rates of pay or other forms of compensation: and selection for
training. including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants
for employment, notices to be provided by the Public Agency Compliance Officer setting forth provisions of this non-
discrimination clause.
The contractor or subcontractor, where applicable will, in all solicitations or advertisement for employees placed by or on behalf
of the contractor, state that all qualified applicants will receive consideration for employment without regard to age, race, creed.
color, national origin, ancestry, marital status, sex, affcctional or sexual orientation.
The contractor or subcontractor, where applicable, will send to each labor union or representative of workers with which it has a
collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer
advising the labor union or workers' representative of the contractor's commitments under this act and shall post copies of the
notice in conspicuous places available to employees and applicants for employment.
The contractor or subcontractor, where applicable, agrees to comply with any regulations promulgated by the Treasurer pursuant
to P.L. 1975,c. 127, as amended and supplemented from time to time and the Americans with Disabilities Act.
The contractor or subcontractor agrees to attempt in good faith to employ minority and female workers trade consistent with the
applicable county employment goal prescribed by N.J.A.C. 17:27-5.2 promulgated by the Treasurer pursuant to P.L. 1975, C.127,
as amended and supplemented from time to time or in accordance with a binding detcnnination of the applicable county
employment goals determined by the Affinnative Action Office pursuant to N.J.A.C. 17:27-5.2 promulgated by the Treasurer
pursuant to P. L. 1975,C.127, as amended and supplemented from time to time.
The contractor or subcontractor agrees to infonn in writing appropriate recruitment agencies in the arca, including employment
agencies, placement bureaus, colleges, universities, labor unions, that it docs not discriminate on the basis of age, creed, color,
national origin, ancestry, marital status, sex, affectional or sexual orientation, and that it will discontinue the use of any
recruitment agency which engages in direct or indirect discriminatory practices.
The contractor or subcontractor agrees to revise any of it testing procedures, if necessary, to assure that all personnel testing
confonns with the principles of job-related testing, as established by the statutes and court decisions of the state of New Jersey
and as established by applicable Federal law and applicable Federal court decisions.
The contractor or subcontractor agrees to review all procedures relating to transfer, upgrading, downgrading and lay-off to ensure
that all such actions are taken without regard to age, creed, color, national origin, ancestry, marital status, sex, affcctional or
sexual orientation, and conform with the applicable employment goals, consistent with the statutes and court decisions of the
State of New Jersey, and applicable Federal law and applicable Federal court decisions.
The contractor and its subcontractors shall furnish such reports or other documents to the Affirmative Action Office as may be
requested by the office from time to time in order to carry out the purposes of these regulations, and public agencies shall furnish
such infonnation as may be requested by the Affirmative Action Office for conducting a compliance investigation pursuant to
Subchaptcr I O of the Administrative Code (NJAC 17:27).
Version June 26. 2024
DOC #4
C. 271 POLITICAL CONTRIBUTION DISCLOSURE FORM
Public Agency Instructions
This page provides guidance to public agencies entering into contracts with business entities that are required to file Political
Contribution Disclosure forms with the agency. It is not intended to be provided to contractors. What follows are instructions
on the use of form local units can provide to contractors that are required to disclose political contributions pursuant to N.J.S.A.
19:44A-20.26 (P.L. 2005, c. 271, s.2). Additional information on the process is available in Local Finance Notice 2006-1
(http://www.nj.gov/dca/divisions/dlgs/resources/lfns_2006.html). Please refer back to these instructions for the appropriate links,
as the Local Finance Notices include links that are no longer operational.
1. The disclosure is required for all contracts in excess of $17,500 that are not awarded pursuant to a “fair and open” process
(N.J.S.A. 19:44A-20.7).
2. Due to the potential length of some contractor submissions, the public agency should consider allowing data to be submitted
in electronic form (i.e., spreadsheet, pdf file, etc.). Submissions must be kept with the contract documents or in an
appropriate computer file and be available for public access. The form is worded to accept this alternate submission.
The text should be amended if electronic submission will not be allowed.
3. The submission must be received from the contractor and on file at least 10 days prior to award of the contract. Resolutions
of award should reflect that the disclosure has been received and is on file.
4. The contractor must disclose contributions made to candidate and party committees covering a wide range of public agencies,
including all public agencies that have elected officials in the county of the public agency, state legislative positions, and
various state entities. The Division of Local Government Services recommends that contractors be provided a list of the
affected agencies. This will assist contractors in determining the campaign and political committees of the officials and
candidates affected by the disclosure.
a. The Division has prepared model disclosure forms for each county. They can be downloaded from the “County PCD
Forms” link on the Pay-to-Play web site at http://www.nj.gov/dca/divisions/dlgs/programs/lpcl.html#12. They will be
updated from time-to-time as necessary.
b. A public agency using these forms should edit them to properly reflect the correct legislative district(s). As the
forms are county-based, they list all legislative districts in each county. Districts that do not represent the public
agency should be removed from the lists.
c. Some contractors may find it easier to provide a single list that covers all contributions, regardless of the county. These
submissions are appropriate and should be accepted.
d. The form may be used “as-is”, subject to edits as described herein.
e. The “Contractor Instructions” sheet is intended to be provided with the form. It is recommended that the Instructions
and the form be printed on the same piece of paper. The form notes that the Instructions are printed on the back of the
form; where that is not the case, the text should be edited accordingly.
f. The form is a Word document and can be edited to meet local needs, and posted for download on web sites, used as an
e-mail attachment, or provided as a printed document.
5. It is recommended that the contractor also complete a “Stockholder Disclosure Certification.” This will assist the local unit
in its obligation to ensure that contractor did not make any prohibited contributions to the committees listed on the Business
Entity Disclosure Certification in the 12 months prior to the contract (See Local Finance Notice 2006-7 for additional
information on this obligation at http://www.nj.gov/dca/divisions/dlgs/resources/lfns_2006.html). A sample Certification
form is part of this package and the instruction to complete it is included in the Contractor Instructions. NOTE: This section
is not applicable to Boards of Education.
Version June 26, 2024
DOC #4, continued
C. 271 POLITICAL CONTRIBUTION DISCLOSURE FORM
Contractor Instructions
Business entities (contractors) receiving contracts from a public agency that are NOT awarded pursuant to a “fair and open”
process (defined at N.J.S.A. 19:44A-20.7) are subject to the provisions of P.L. 2005, c. 271, s.2 (N.J.S.A. 19:44A-20.26). This
law provides that 10 days prior to the award of such a contract, the contractor shall disclose contributions to:
• any State, county, or municipal committee of a political party
• any legislative leadership committee*
• any continuing political committee (a.k.a., political action committee)
• any candidate committee of a candidate for, or holder of, an elective office:
o of the public entity awarding the contract
o of that county in which that public entity is located
o of another public entity within that county
o or of a legislative district in which that public entity is located or, when the public entity is a county, of any
legislative district which includes all or part of the county
The disclosure must list reportable contributions to any of the committees that exceed $300 per election cycle that were made
during the 12 months prior to award of the contract. See N.J.S.A. 19:44A-8 and 19:44A-16 for more details on reportable
contributions.
N.J.S.A. 19:44A-20.26 itemizes the parties from whom contributions must be disclosed when a business entity is not a natural
person. This includes the following:
• individuals with an “interest” ownership or control of more than 10% of the profits or assets of a business entity or 10%
of the stock in the case of a business entity that is a corporation for profit
• all principals, partners, officers, or directors of the business entity or their spouses
• any subsidiaries directly or indirectly controlled by the business entity
• IRS Code Section 527 New Jersey based organizations, directly or indirectly controlled by the business entity and filing
as continuing political committees, (PACs).
When the business entity is a natural person, “a contribution by that person’s spouse or child, residing therewith, shall be deemed
to be a contribution by the business entity.” [N.J.S.A. 19:44A-20.26(b)] The contributor must be listed on the disclosure.
Any business entity that fails to comply with the disclosure provisions shall be subject to a fine imposed by ELEC in an amount
to be determined by the Commission which may be based upon the amount that the business entity failed to report.
The enclosed list of agencies is provided to assist the contractor in identifying those public agencies whose elected official and/or
candidate campaign committees are affected by the disclosure requirement. It is the contractor’s responsibility to identify the
specific committees to which contributions may have been made and need to be disclosed. The disclosed information may exceed
the minimum requirement.
The enclosed form, a content-consistent facsimile, or an electronic data file containing the required details (along with a signed
cover sheet) may be used as the contractor’s submission and is disclosable to the public under the Open Public Records Act.
The contractor must also complete the attached Stockholder Disclosure Certification. This will assist the agency in meeting its
obligations under the law. NOTE: This section does not apply to Board of Education contracts.
*
N.J.S.A. 19:44A-3(s): “The term "legislative leadership committee" means a committee established, authorized to be
established, or designated by the President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly
or the Minority Leader of the General Assembly pursuant to section 16 of P.L.1993, c.65 (C.19:44A-10.1) for the purpose of
receiving contributions and making expenditures.”
Version June 26, 2024
DOC #4, continued
C. 271 POLITICAL CONTRJBUTION DISCLOSURE FORM
Required Pursuant to N.J.S.A. 19:44A-20.26
This form or its permitted facsimile must be submitted to the local unit
no later than IO days prior to the award of the contract.
Part I - Vendor Information
Vendor Name:
Address:
Ci :
The undersigned being authorized to certify, hereby certifies that the submission provided herein represents
compliance with the provisions ofN.J.S.A. 19:44A-20.26 and as represented by the Instructions accompanying this
form.
Part II - Contribution Disclosure
Disclosure requirement: Pursuant to N.J.S.A. 19:44A-20.26 this disclosure must include all reportable
political contributions (more than $300 per election cycle) over the 12 months prior to submission to the
committees of the government entities listed on the form provided by the local unit.
[] check here if disclosure is provided in electronic form
Contributor Name Recipient Name Date Dollar Amount
/o s
D Check here if the information is continued on subsequent page(s)
Version June 26. 2024
DOC #4, continued
List of Agencies with Elected Officials Required for Political Contribution Disclosure
N.J.S.A. 19:44A-20.26
County Name:
State: Governor, and Legislative Leadership Committees
Legislative District #s:
State Senator and two members of the General Assembly per district.
County:
Freeholders County Clerk Sheriff
{County Executive} Surrogate
Municipalities (Mayor and members of governing body, regardless of title):
USERS SHOULD CREATE THEIR OWN FORM, OR DOWNLOAD
FROM THE PAY TO PLAY SECTION OF THE DLGS WEBSITE A
COUNTY-BASED, CUSTOMIZABLE FORM.
Version June 26, 2024
DOC #5
STOCKHOLDER DISCLOSURE CERTIFICATION
Name of Business:
, certify that the list below contains the names and home addresses of all stockholders holding
I 0% or more of the issued and outstanding stock of the undersigned.
OR
[El I certify that no one stockholder owns 10% or more of the issued and outstanding stock of the
undersigned.
Check the box that represents the type of business organization:
Dress» LElcno Llse ors«ors»
Llaca Paneros D Limit.ed Liability Corporation □ Limited Liability Partnership
Els.charter s coronation
Sign and notarize the form below, and, if necessary, complete the stockholder list below.
Stockholders·
Name: Name:
Home Address: Home Address:
Name: Name:
Home Address: Home Address:
Name: Name:
Home Address: Home Address:
sotssribes4 md s«omo betore ne o U a,r_[/0v{y1)9¥
2024-
w hot
(Affant)
Í a-o
lta_.name
(Print title &
sLs
of affiant)
a
My commission expires: 2-llU> (Co rate Seal
DONNA M GRISANTI
Verson June 26, 2024 Notary Public - State of New Jersey
My Commission Expires Fe '1, 2026
DOC#6
DISCLOSURE OF INVESTMENT ACTIVITIES IN IRAN FORM
STATE OF NEW JERSEY
DEPARTMENT OF THE TREASURY • DIVISION OF PURCHASE AND PROPERTY
33 WEST STATE STREET, P.O. BOX 230 TRENTON, NEW JERSEY 08625-0230
ero soucrono»e o me Qwis
VENDOR NAME: Cme- Cot/@1 /'eo
to
¡
Pursuant to N.J.S.A 52.32-57, et seq. (PL 2012. c.25 and PL 2021, c.4) any person or entity that submits a bid or proposal or otherwise proposes to enter into
or renew a contract must certify that neither the person nor entity, nor any of its parents, subsidiaries, or affiliates, is identified on the New Jersey Department of the
Treasury's Chapter 25 List as a person or entity engaged in investment activities in Iran. The Chapter 25 list is found on the Division's website at
https://www.state.nj.us/treasury/purchase/pdf/Chapter25List.pdf. Vendors/Bidders must review this list prior to completing the below certification. If the
Director of the Division of Purchase and Property finds a person or entity to be in violation of the law, she shall take action as may be appropriate and provided
by law, rule or contract, including but not limited to, imposing sanctions, seeking compliance, recovering damages, declaring the party in default and seeking
debarment or suspension of the party.
CHECK THE APPROPRIATE BOX
001 certify , pursuant to N.J.SA. 52.32-57, et seq. (PL. 2012, c25 and P.L. 2021, c.4), that neither the Vendor/Bidder listed above nor any of its parents,
subsidiaries, or affiliates is listed on the New Jersey Department of the Treasury's Chapter 25 List of entities determined to be engaged in prohibited activities in
Iran.
OR
D I am unable to certify as above because the Vendor/Bidder and/or one or more of its parents, subsidiaries, or affiliates is listed on the New Jersey
Department of the Treasury's Chapter 25 List. I will provide a detailed, accurate and precise description of the activities of the Vendor/Bidder, or one of its
parents, subsidiaries or affiliates, has engaged in regarding investment activities in Iran by completing the information requested below.
Entity Engaged in Investment Activities
Relationship to Vendor/ Bidder
Description of Activities
Duration of Engagement
Anticipated Cessation Date
'Attach Additional Sheets It Necessary
CERTIFICATION
I, the undersigned, certify that I am authorized to execute this certification on behalf of the Vendor, thai the foregoing information and any attachments hereto, to
the best of my knowledge are true and complete. I acknowledge that the State of New Jersey is relying on the information contained herein, and that the Vendor is
under a continuing obligation from the date of this certification through the completion of any contract(s) with the State to notify the State in writing of any changes to
the information contained herein; that I am aware that il is a criminal offense to make a false statement or misrepresentation in this certification. If I do so, I may be
subject to criminal prosecution under the law, and it will constitute a material breach of my contract(s) with the State, permitting the State to declare any contract(s)
resulti is certification void and unenforceable.
Date
l/etI I
Print Name and Tille
DPP Rev 12.13.2021
Version June 26, 2024
DOC#7
CERTIFICATION OF NON-INVOLVEMENT IN PROHIBITED ACTIVITIES IN RUSSIA OR BELARUS
Pursuant to N.J.S.A. 52.32-60.1, et seq. (L 2Q22_c3) any person or entity (hereinafter "Vendor') that seeks to enter into or renew a contract with a State
agency for the provision or goods or services, or the purchase or bonds or other obligations, must complete the certification below indicating whether or not
the Vendor is identified on the Office or Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons list, available here:
tttgs_ sanctonssearch_ofac_treas_goy_. If the Department of the Treasury finds that a Vendor has made a certification in violation of the law, it shall take
any action as may be appropriate and provided by law, rule or contract, including but not limited to, imposing sanctions, seeking compliance, recovering
damages, declaring the party in default and seeking debarment or suspension of the party.
I, the undersigned, certify that I have read the definition or "Vendor· below, and have reviewed the Office of Foreign Assets Control (OFAC) Specially
Designated Nationals and Blocked Persons list, and having done so certify:
(Check the Appropriate Box)
That the Vendor is not identified on the OFAC Specially Designated Nationals and Blocked Persons list on account of activity related to
A. Russia and or Belarus.
OR
That I am unable to certify as to 'A' above, because the Vendor is identified on the OFAC Specially Designated Nationals
o B. and Blocked Persons list on account of actyity related to_Russia and_or Belarus.
OR
That l am unable to certify as to "A' above, because the Vendor is identified on the OFAC Specially Designated Nationals and Blocked
o C.
Persons list. However, the Vendor is engaged in activity related to Russia and/or Belarus consistent with federal law, regulation, license
or exemption. A detailed description or how the Vendor's activity related to Russia and/or Belarus is consistent with federal law is set
forth below.
o
(Attach Additional Sheets If
Signature or Vendo · horized Representative Date 1
/t a.o saos /1««se
Print Name and Tille or Vendor's Authorized Representative
o-o7/2/
Vendor's FEIN
oc Coabn
Vendor's Name
2el 7&¥ 3516
Vendor's Phone Number
loco Shel Sal vol &66-353 @o3l
Vendor's Fax Number
Vendor.
r's Address (Street Address)
Cime lT O7et4
Vendor's Address (City/State/Zip Code)
/'._ 6s2+oC
Vendor's Email Address
Vendor means: (1) A natural person, corporation, company, limited partnership, limited liability partnership, limited liability company, business association, sole
proprietorship, joint venture, partnership, society, trust. or any other nongovernmental entity, organization, or group; (2) Any governmental entity or instrumentality of a
govemmenl induding a multilateral development institution, as defined in Section 1701(c)3) of the International Financial Institutions Act, 22 U.S.C. 262r(c)(3); or (3) Any
parent, successor, subunit, direct or indirect subsidiary, or any entity undercommon ownership or control with, any entity described in paragraph (1) or (2). NJ Rev 1.22 2024
Version June 26. 2024
DOC #8
NEW JERSEY BUSINESS REGISTRATION CERTIFICATE
(N.J.S.A. 52:32-44)
Offerors wishing to do business in New Jersey must submit their State Division of Revenue issued
Business Registration Certificate with their proposal here. Failure to do so will disqualify the Offeror
from offering products or services in New Jersey through any resulting contract.
https://www.njportal.com/DOR/BusinessRegistration/
Version June 26, 2024
DOC#9
EEOAA EVIDENCE
Equal Employment Opportunity/Affinnative Action
Goods, Professional Services & General Service Projects
EEO/AA Evidence
Vendors are required to submit evidence of compliance with N.J.S.A. 10:5-31 et seq. and
N.J.A.C. 17:27 in order to be considered a responsible vendor.
One of the following must be included with submission:
• Copy of Letter of Federal Approval
• Certificate of Employee Information Report
• Fully Executed Fann AA302
• Fully Executed EEO- I Report
See the guidelines at:
https://www.state.nj.us/treasury/contract compliance/documents/pdf/guidelines/pa.pdf
for further information.
I certify that my bid package includes the required evidence per the above list and
State website.
s... / lseo Title:
Signature:~ Date:
DOC #10
MACBRIDE-PRINCIPLES
STATE OF NEW JERSEY
DEPARTMENT OF THE TREASURY - DIVISION OF PURCHASE
AND PROPERTY 33 WEST STATE STREET, P.O. BOX 230 TRENTON,
NEW JERSEY 08625-0230
s soucIAioN + ANo Te.. Q/« (ertus Huc (rP
VENoR NAMe. fr
Pursuant to Public Law 1995, c. 134,a responsible Vendor/Bidder is required to provide a certification in compliance with the MacBride Principles
and Northern Ireland Act of 1989. Pursuant to N.J.S.A. 52:34-12.2, Vendor/Bidder must complete the certification below by checking one of the
two options listed below and signing where indicated. If a Vendor/Bidder that would otherwise be awarded a purchase, contract or agreement
does not complete the certification, then the Director may determine, in accordance with applicable law and rules, that it is in the best interest of
the State lo award the purchase, contract or agreement to another Vendor/ Bidder that has completed the certification and has submitted a bid
within five (5) percent of the most advantageous bid. If the Director finds contractors to be in violation of the principles that are the subject of this
law, he/she shall take such action as may be appropriate and provided by law, rule or contract, including but not limited to, imposing sanctions,
seeking compliance, recovering damages, declaring the party in default and seeking debarment or suspension of the party.
I, the undersigned, on behalf the Vendor/Bidder, certify pursuant to N.JS.A. 52.34-12.2 that.
CHECK THE APPROPRIATE BOX
D The Vendor/Bidder has no business operations in Northern Ireland; or
OR
The Vendor/Bidder will take lawful steps in good faith to conduct any business operations it has in Northern Ireland in accordance
1 with the MacBride principles of nondiscrimination in employment as set forth in section 2 of P.L. 1987,c. 177 (N.J.S.A. 52:18A-89.5)
and in conformance with the United Kingdom's Fair Employment (Northern Ireland) Act of 1989, and permit independent monitoring
of its compliance with those principles.
CERTIFICATION
I, the undersigned, certify that I am authorized to execute this certification on behalf of the Vendor, that the foregoing infonmation and any attachments
hereto, to the best of my knowledge are true and complete. I acknowledge that the State of New Jersey is relying on the information contained herein,
and that the Vendor is under a continuing obligation from the date of this certification through the completion of any contract(s) with the State to notify the
State in writing of any changes to the information contained herein; that I am aware that it is a criminal offense to make a false statement or
misrepresentation in this certification. If I do so, I may be subject to criminal prosecution under the law, and il will constitute a material breach of my
contract(s) with the State, permitting the State to declare any contract(s) resulting from this certification void and unen! ceable.
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DPP Rev. 12.13.2021
Version June 26, 2024
N.J. Department of Treasury - Division of Revenue, On-Line Inquiry Page 1 of 1
STATE OF NEW JERSEY
BUSINESS REGISTRATION CERTIFICATE
Taxpayer Name: CARRIER CORPORATION
Trade Name:
Address: 9 FARMS SPRING RD (MS 541-82)
FARMINGTON, CT 06032-2569
Certificate Number: 0056998
Effective Date: June 27, 1979
Date of Issuance: October 17, 2016
For Office Use Only:
20161017114017801
https://www1.state.nj.us/TYTR_BRC/servlet/common/BRCLogin 10/17/2016
Graziano, Marc L
From: CClass@treas.state.nj.us
Sent: Tuesday, January 31, 2023 11:14 AM
To: Graziano, Marc L
Subject: [External]Notice of Classification
Categories: External, Orange Category
You don't often get email from cclass@treas.state.nj.us. Learn why this is important
CARRIER CORP
100 DE LAWANNA AVE. SUITE 401
CLIFTON, NJ 07030
State of New Jersey
DEPARTMENT OF THE TREASURY
DIVISION OF PROPERTY MANAGEMENT AND CONSTRUCTION
33 WEST STATE STREET - P.O. BOX 034
TRENTON, NEW JERSEY 08625-0034
NOTICE OF CLASSIFICATION
In accordance with N.J.S.A. 18A:18A-27 et seq (Department of Education) and N.J.S.A. 52:35-1 (Department of the
Treasury) and any rules and regulations issued pursuant hereto, you are hereby notified of your classification to do
State work for the Department (s) as previously noted.
Aggregate Effective Expiration
Trade(s) & License(s)
Amount Date Date
$15,000,000 C043 -CONTROL SYSTEMS 01/30/2023 01/29/2025
C098 -ENERGY MANAGEMENT SYSTEMS 01/30/2023
C032 -HVACR 01/30/2023
license #: 19HC00803600
Licenses associated with certain trades are on file with the Division of Property Management &
Construction (DPMC).
Current license information must be verified prior to bid award.
A copy of the DPMC 701 Form (Total Amount of Uncompleted Projects) may be accessed from the
DPMC website at https://www.nj.gov/treasury/dpmc/Assets/Files/DPMC701.pdf.
ANY ATTEMPT BY A CONTRACTOR TO ALTER OR MISREPRESENT ANY INFORMATION CONTAINED IN THIS FORM MAY
RESULT IN PROSECUTION AND/OR DEBARMENT, SUSPENSION OR DISQUALIFICATION. INFORMATION ON AGGREGATE
AMOUNTS CAN BE VERIFIED ON THE DPMC WEB SITE.
1
state of $2tu 3Jerse
PHILIP D. MURPHY ELIZABETH MAHER MUOIO
DEPARTMENT OF THE TREASURY
Governor Stcte Treasurer
DIVISION OF PURCHASE AND PROPERTY
CONTRACT COMPLIANCE & AUDIT UNIT
EEO MONITORING PROGRAM
SHEILA Y. OLIVER MAURICE A. GRIFFIN
33 WEST STATE STREET
Lt. Governor Acting Director
P. O. Box 206
TRENTON. NEW JERSEY 08625-0206
ISSUANCE CERTIFICATE OF
EMPLOYEE INFORMATION REPORT
Enclosed is your Certificate of Employee information Report (hereinafter referred to as the
"Certificate" and issued based on the Employee Information Report (AA-302) form completed by a
representative of your company or finn. Immediately upon receipt, this certificate should be forwarded
to the person in your company or firm responsible for ensuring equal employment opportunity and/or
overseeing the company or finn 's contracts with public agencies. Typically. this person may be your
company or firm's Human Resources Manager. Equal Employment Opportunity Officer or Contract
Administrator. If you do not know to whom the certificate should be forward, kindly forward it to the
head of your company or firm. Copies of the certificate should also be distributed to all facilities of your
company or finn who engage in bidding on public contracts in New Jersey and who use the same federal
identification number and company name. The certificate should be retained in your records until the date
it expires. This is very important since a request for a duplicate/replacement certificate will result in a
$75.00 fee.
On future successful bids on public contracts, your company or finn must present a photocopy of
the certificate to the public agency awarding the contract after notification of the award but prior to
execution of a goods and services or professional services contract. Failure to present the certificate within
the time limits prescribed may result in the awarded contract being rescinded in accordance with N.J.A.C.
l 7:27-4.3b.
Please be advised that this certificate has been approved only for the time periods stated on the
certificate. As early as ninety (90) days prior to its expiration. the Division will forward a renewal
notification. Upon the Division's receipt of a properly completed renewal application and $150.00
application fee, it will issue a renewal certificate. In addition, representatives from the Division may
conduct periodic visits and/or request additional information to monitor and evaluate the continued equal
employment opportunity compliance of your company or firm. Moreover, the Division may provide your
company or finn with technical assistance, as required. Please be sure to notify the Division immediately
if your company's federal identification number, name or address changes.
If you have any questions, please call (609) 292-5473 and a representative will be available to
assist you.
Rev. 4/18
Certification 641
CERTIFICATE OF EMPLOYEE INFORMATION REPORT
RENEWAL
This is to certify that the contractor listed below has submitted an Employee Information Report pursuant to
N.JA.C, 17.27-1.1 et. seq and the State Treasurer has approved said report. This approval will remain in
effect for the period ot 15-MAY-2021 415-MAY-2028
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CARRIER COMMERCIAL SERVICE
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100 DELAWANA AVE.
CLIFTON NJ 07014 ~ ,r •
antre.
ELIZABE TH MAHER MUOIO
State Treasurer
STATE OF NEW JERSEY
US POSTAGE)}) PITNEY OWES
DEPARTMENT OF THE TREASURY
~.._-,.
DIVISION OFPURCHASE & PROPERTY
CONTRACT COMPLIANCE AUDIT UNIT
PO BOX 206
TRENTON, NJ 08625-0206
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CORPORATE POLICY MANUAL SE C T I O N
2
Environmental, Health, and Safety
A. SUMMARY
B. POLICY
C. DEFINITIONS
D. OWNERSHIP & APPROVAL
E. REFERENCES
EXHIBIT 1 – EH&S POLICY STATEMENT
EXHIBIT 2 – SAFETY COMMITMENTS
PRINTED COPIES OF THIS DOCUMENT ARE UNCONTROLLED - PLEASE VERIFY CURRENT ISSUE BEFORE USE
This document and the information contained therein is confidential and proprietary to Carrier Global Corporation and shall not
be used or disclosed to others, in whole or in part, without the written authorization of Carrier Global Corporation.
Unpublished Work – © Carrier Global Corporation 2024
CORPORATE POLICY MANUAL
SUMMARY
At Carrier, we are committed to protecting what matters – our people, our stakeholders,
and the environment to support Carrier’s mission to create solutions that matter for people
and our planet. Carrier will ensure EH&S is an integral component of all business processes
that impact the products, services, and operations of Carrier worldwide.
POLICY
The Carrier Board of Directors Governance Committee, including the Carrier Chief Executive
Officer (“CEO”), establishes major policies, provides strategic direction, and establishes
company-wide numeric goals and targets for implementation of the Carrier EH&S Operating
System (consisting of the requirements, policies, standards, programs described in this
Policy).
Each Executive Leadership Team member, including Reporting Unit presidents, is
responsible to the CEO for developing strategies for and ensuring implementation of the
EH&S Program in their unit and assessing its effectiveness.
Carrier Vice President, EH&S, provides functional leadership, establishes company-wide
strategies, policies, and standards; oversees company-wide implementation; audits
conformance to it.
EH&S leaders for each Reporting Unit shall provide functional leadership for EH&S within
their unit and shall advise the Reporting Unit’s president on implementation strategies,
directives, policies, and standards that are part of the Carrier EH&S Operating System;
develop additional policies and practices appropriate to the unit; monitor development and
implementation of EH&S programs within the unit; and report progress to the Reporting Unit
president and Carrier’s Vice President, EH&S.
The Carrier EH&S Management Operating Review (MOR) shall be chaired by the Carrier
Vice President, EH&S, and comprised of
• Carrier Senior Vice President, Operations;
• Carrier Senior Manager Aftermarket Strategy;
• each Reporting BU / Region Operations VP;
• each Reporting Unit’s EH&S Leader;
• Carrier Associate Director, EH&S Compliance & Assurance;
• Carrier EH&S Counsel;
• Carrier Senior Director, Operations Human Resources;
• Carrier VP Operations Finance, and
• the respective delegates/invitees of the preceding.
Carrier Global Corporation – May 2024 2/10
CORPORATE POLICY MANUAL
The Carrier EH&S MOR shall address emerging issues and risks affecting Carrier;
recommend strategic direction, policies, and standards; approve actions not requiring
approval by senior line management and evaluate Carrier’s performance against this Policy.
The Carrier EH&S MOR will meet, at minimum, once per quarter and address on an annual
basis:
• Enterprise risks; Compliance and Governance
• Known and emerging issues
• Sustainability performance
• Leadership training and cultural awareness, and
• Gemba
Each Reporting Unit will integrate into their process a monthly manufacturing or service
location review at the reporting unit’s Executive Leadership (ELT) level to assess the
location’s EH&S operational performance and risk to Carrier.
Operations, field service, and line managers are responsible and accountable for
implementing the Carrier EH&S Program.
SCOPE
Our EH&S Program extends to all employees and contractors across all global sites,
operations and subsidiaries, and joint ventures where Carrier’s interest is 50% or more or
when Carrier has operational control.
As outlined in our Supplier Code of Conduct, we expect our suppliers to comply with all
applicable environmental, health, and safety laws, regulations, and directives; and also
conduct operations in a manner that safeguards the environment, minimizes waste,
greenhouse gas emissions, water, energy consumption, and the use of materials of concern.
They must also ensure safe and healthy work environments for employees and business
invitees.
DEFINITIONS
Carrier EH&S Policy Statement: Written statement signed by the Chairman & Chief
Executive Officer, and Senior Vice President, Operations, expressing Carrier’s commitment
to protecting the health and safety of our employees and the communities in which Carrier
operates. The Carrier EH&S Policy Statement is attached as Exhibit 1.
Carrier EH&S Operating System (EHSOS): System for managing environment, health, and
safety, including standards, processes, procedures, and programs that support Carrier’s
EH&S Policy and continuous improvement.
Standards: Standards define minimum operating requirements for all Carrier locations
globally and are organized within the EH&S Operating System.
Carrier Global Corporation – May 2024 3/10
CORPORATE POLICY MANUAL
Safety Commitments: The Safety Commitments are intended to supplement and support
existing company operating systems, programs, and policies and focus on modifying worker
and supervisor behaviors in the workplace by raising awareness. Carrier’s Safety
Commitments are attached as Exhibit 2.
OWNERSHIP AND APPROVAL
The Carrier Vice President, EH&S, and EH&S MOR members will review this Policy Manual
annually to verify its continued applicability, effectiveness, and alignment with our business
strategy.
REFERENCES
All referenced CPM and SPSW can be retrieved from ePolicy.
Exhibit 1: Carrier EH&S Policy Statement
Exhibit 2: Carrier Safety Commitments
CPSW 12B - Climate Change Policy
Supplier Code of Conduct
Carrier Global Corporation – May 2024 4/10
EXHIBIT 1
CORPORATE POLICY MANUAL
Carrier Environment, Health and Safety (EH&S) Policy
At Carrier, we are committed to protecting what matters – our people, our stakeholders, and the
environment. We are continuously improving how we work to ensure every person is safe and
empowered to design, source, produce, market, and deliver our products and services in a secure,
environmentally conscious, and socially responsible manner.
To achieve the goals of this policy, we commit to driving a culture that protects our:
People
• Deliberate actions to provide our employees and contractors a workplace free from injury and illness.
• Allocate necessary resources to support the implementation, continuous improvement, and
sustainment of our EH&S Operating System.
• Foster active participation and engagement of all employees.
• Stimulate a culture of hazard awareness and prevention that drives zero incidents.
Environment and Communities
• Develop and deliver products and services that minimize the impact on the environment and our
communities and fully comply with applicable regulations.
• Execute environmental stewardship programs to achieve world-class efficiencies in energy, water
usage, waste management, and air emissions while actively participating in environmental projects
within our communities.
• Leverage digital technology and analyze data across the design to service value stream to guarantee
accurate performance reporting, proactive identification, and management of risks.
• Through our EH&S Operating System, set goals, objectives, and targets to improve our performance
continuously.
Stakeholders
• Govern our operations to ensure performance above and beyond compliance with applicable laws,
regulations, and permits globally.
• Ensure the mitigation of EH&S aspects, impacts, hazards, and risks in all business decisions through
management of change.
• Engage our high-risk suppliers on topics including, but not limited to, environmental stewardship,
employee health and safety, and ethical business practices to ensure business continuity.
• Our EH&S Operating System will ensure business continuity by proactively identifying and managing
emerging EH&S aspects, impacts, hazards, and risks.
EH&S is a shared responsibility, and all of us are held accountable. We are empowered and
expected to stop work where appropriate and report early warning indicators, near misses, concerns, and
incidents. These expectations are foundational to our Safety Commitments that we expect every
employee to embrace and promote in their daily activities.
Dave Gitlin Adrian Button
Chairman & Chief Executive Officer Senior Vice President, Operations
Carrier Carrier
Carrier Global Corporation – May 2024 5/10
EXHIBIT 2
CORPORATE POLICY MANUAL
Our Safety Commitments
Icon Commitment
Risk Assessment
Identification of safety hazards “at the moment” is essential to defining controls to
minimize the chance of injury.
I will
• Complete a pre-work assessment and inspect controls before starting any
activity
• Continue to assess that my work is safe
• Stop work if the assessment shows that it is not safe or harms the environment
I will NOT
• Remove or bypass safety features
• Ignore safety rules, warning signs, barricades, walkways or other site controls
• Attempt to work on equipment I am not trained and authorized on
I will STOP WORK if I cannot perform the task SAFELY!
Electrical Safety
When performing electrical work or when there is arc flash potential:
I will
• Check my PPE is not broken or damaged before use
• Verify electrical test equipment is operating properly
• Use 10mA GFCI/RCD with all handheld power tools
I will NOT
• Start work if I have damaged PPE or equipment
I will STOP WORK if I cannot perform the task SAFELY!
Carrier Global Corporation – May 2024 6/10
CORPORATE POLICY MANUAL
Icon Commitment
Hazardous Energy
When servicing or maintaining machines/equipment:
I will
• Identify the energy sources that could hurt me (electrical, chemical, mechanical,
radiation, hydraulic, pneumatic (air), gravity, thermal, etc.)
• Isolate the energy sources to avoid the release of stored energy
• Confirm Zero Energy State before working on isolated equipment
I will NOT
• Work on hazardous energy sources that cannot be isolated
I will STOP WORK if I cannot perform the task SAFELY!
Working at Height
When working at a height ofand outside of protected guard rails and man lifts:
I will
• Obtain a valid permit for elevated work, if required
• Verify fall protection equipment is safe and in good condition before use
• Verify customer-owned equipment is safe and in good condition before use
• Check fixed platforms, fall arrest systems, harnesses, and lanyards are
anchored correctly
• Secure my tools and equipment to prevent dropped objects
• Always maintain 3 points of contact on ladders
I will NOT
• Start work when I cannot put in place controls to protect me against a fall
I will STOP WORK if I cannot perform the task SAFELY!
Carrier Global Corporation – May 2024 7/10
CORPORATE POLICY MANUAL
Icon Commitment
Pressurized Gas
When working with gaseous suppression and compressed gas cylinders:
I will
• Always treat cylinders as fully pressurized
• Use mechanical aids and follow safe handling procedures when moving
cylinders
• Perform pressure releases in a secured and controlled manner
I will NOT
• Move or transport cylinders without valve protection
• Remove the valve cap or locking pin before a cylinder is secured
• Leave cylinders unsecured or unrestrained
• Use cylinders that look damaged, corroded, or have exceeded their proof
pressure test date
I will STOP WORK if I cannot perform the task SAFELY!
Lifting Operations
When utilizing cranes, hoists, or other mechanical lifting devices:
I will
• Verify that a safe work zone is established and maintained
• Follow approved lifting methods
• Obtain a valid permit before starting a lifting operation, if required
• Check that rigging and safety devices are inspected and operational
I will NOT
• Install rigging without qualifications
• Work or walk under a suspended load
I will STOP WORK if I cannot perform the task SAFELY!
Carrier Global Corporation – May 2024 8/10
CORPORATE POLICY MANUAL
Icon Commitment
Industrial Vehicles
When operating powered industrial vehicles (PIV):
I will
• Follow procedures while operating a PIV.
• Maintain the PIV per company and manufacturer requirements for safe
operation
• Set up an exclusion zone for loading/unloading tasks and keep people out
• Yield at intersections and crosswalks
• Always wear my seat belt or fastening device, if appropriate
I will NOT
• Exceed speed limit of 8 km/h (5mph)
• Operate a PIV without qualification
I will STOP WORK if I cannot perform the task SAFELY!
Motor Vehicles
When using motor vehicles in everyday work activities:
I will
• Pre-plan my trip to avoid predictable hazards.
• Verify that everyone in the vehicle is wearing a seatbelt.
• Verify loads are secured and secure the movement of vehicles being loaded or
unloaded
I will NOT
• Drive on company business or in a company vehicle if fatigued or under the
influence of drugs or alcohol
• Text from a mobile telephone while driving.
• Use mobile phones or other devices while driving unless using hands-free
technology.
I will STOP WORK if I cannot perform the task SAFELY!
Carrier Global Corporation – May 2024 9/10
CORPORATE POLICY MANUAL
Icon Commitment
Machine Guarding
When using machines and equipment with moving parts:
I will
• Verify safeguards are in place and functioning correctly before operating the
machine/equipment
• Inform supervisor if the safeguards were disabled or are faulty
I will NOT
• Work around/on equipment that is unguarded or has faulty safeguards
• Tamper, disable, or bypass machine/equipment guarding.
I will STOP WORK if I cannot perform the task SAFELY!
Carrier Global Corporation – May 2024 10/10
Environmental Health & Safety Program
Building Systems and Services
Protecting Our Customers, Our Employees, Our World
PREFACE
The enclosed booklet is provided to assist employees
with working in a safe, healthful and environmentally
sound manner. The booklet provides only a summary of
key information that has been selected for your reference.
Detailed information regarding any subject in this booklet
can be found in the Carrier Sales and Service (CSS),
Environmental Health and Safety (EH&S) or Management
Systems files.
This booklet shall also be provided to all CSS subcontractors
who perform services for CSS on CSS or its customers’
property. At a minimum, Subcontractors will abide by all the
requirements herein but shall not be relieved from complying
with any and all more stringent codes, regulations, or laws
that may be applicable to its work.
This booklet shall also serve as a summary of the CSS
Environmental Health and Safety program when requested
by CSS customers.
TABLE OF CONTENTS
Introduction Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Carrier Sales and Service Environment, Health and Safety Policy . . . . ii
ENVIRONMENTAL HEALTH and SAFETY MANAGEMENT SYSTEMS
Procedure and Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Assessment, Prevention and Control (APC) . . . . . . . . . . . . . . . . . . . . . . . . 3
Education and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Rules and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Inspections and Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Incident Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Documents and Records Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Program Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
SAFETY
Powered Industrial Trucks (PIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Elevated Work Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Personal Protective Equipment (PPE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Asbestos Awareness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Variable Frequency Drives (VFD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Life Safety Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Confined Space Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Electrical Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Motor Vehicle Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Control of Hazardous Energy Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Rigging Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Working in Cooling Towers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Compressed Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Work-Related Injury and Illness Management . . . . . . . . . . . . . . . . . . . . . 31
Contractor Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Hot Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Lead Awareness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Hydrogen Sulfide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Benzene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
OCCUPATIONAL HEALTH
Hazard Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Respiratory Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Hearing Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Material Handling and Ergonomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Blood-borne Pathogens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Workers’ Compensation Management Guide . . . . . . . . . . . . . . . . . . . . . . 44
Heat Stress Prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Copy Employee Medical Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Guidelines for Potentially Contagious
Medical Conditions or Exposures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
ENVIRONMENTAL
Used Oil Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Refrigerant Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Water Pollution Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Disposal of Empty Containers and Used Rags . . . . . . . . . . . . . . . . . . . . . 54
Shipping of Hazardous Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Spill or Release Response and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . 56
New or Modified Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
GENERAL EH&S TOPICS
EHS Document Signature Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Regulatory Inspections and Visits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
New Chemical Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
EHS Records Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
To All of Our Associates and Employees
The health and general well being of the Carrier Sales and Service
(CSS) employees — and the communities in which we work and live
— are integral parts and important elements to the success of CSS.
Therefore, the protection of the health and safety of our employees,
our neighbors and our environment is a priority with Carrier Sales and
Service.
As a division of a global corporation, operating in various areas of
North America, it is important for CSS to establish and maintain a high
level of health, safety and environmental performance and achieve
satisfactory results.
In order to be in alignment with Carrier Corporation, CSS will conform
to the United Technologies Corporation and Carrier Environmental
Health and Safety Procedures and Policies. These procedures and
policies establish a foundation upon which CSS operations can build a
comprehensive program that will enable CSS to achieve its health and
safety goals. Copies of the procedures and policies can be obtained by
contacting a CSS Environmental Health and Safety (EH&S) Manager.
Protecting the health and safety of CSS employees and the
environment can only be achieved if all of us do our share.
I am sincerely asking your assistance and cooperation to ensure that
the CSS EHS Management System becomes an integral part of our
daily work and personal lives.
To reinforce our commitment, the following policy reflects Carrier Sales
and Service’s goals regarding the environment, health and safety.
i
Carrier Sales and Service Environment,
Health and Safety Policy
Protecting the safety of our employees, and the environment, is a core
value within Carrier. We will not be satisfied until our workplaces are safe
from hazards, our employees are injury free, our products and services are
safe, and our commitment and record in protecting the environment are
unmatched.
Specifically, this policy requires the following of every Carrier business and
associate:
• Compliance with local laws and the policies, standards and practices of
the corporation;
• Establishment of safety and environmental goals and plans that support
achievement of the performance goals of the corporation and are an
integral part of our business plans;
• Providing accurate and timely measurement and reporting of
performance;
• Implementation and periodic evaluation of EHS Management Systems
in order to reduce risks and continually improve the effectiveness of our
EHS processes;
• Promotion of the health and wellness of our employees;
• Integration of safety and environmental considerations into the design
of our products and services, and support of public policies that
encourage the development of “green” products, services and buildings
in the markets we serve;
• Commitment of the methods and resources necessary to direct,
support, monitor and maintain accountability for implementation of
this policy.
President, BSS NA Field Operations
ii
ENVIRONMENTAL HEALTH & SAFETY
(EH&S) MANAGEMENT SYSTEM
ENVIRONMENTAL HEALTH & SAFETY (EH&S)
MANAGEMENT SYSTEM
Carrier’s parent company, United Technologies Corporation, has
mandated that all its divisions follow a model EH&S Management System
(EHSMS). It has been used as the template for the programs developed
and implemented by CSS operating units to manage EH&S performance.
The management system consists of the following 12 elements:
• Procedure and Leadership • Communication
• Organization • Rules and Procedures
• Planning • Inspections and Audits
• Accountability • Incident Investigation
• Assessment, Prevention • Documents and Records
and Control Management
• Education and Training • Program Evaluation
Each of the 12 elements in the management system is briefly explained
below. For a complete copy of the CSS EH&S Management Systems
Manual please contact your local Carrier Sales and Service office.
Procedure and Leadership
Carrier has a written EH&S Procedure statement that defines senior
management’s EH&S philosophy, commitment and expectations, thus
providing a guide for the entire organization. Annually, it is reviewed,
updated, communicated to all employees and made available to the
public. Senior management demonstrates their commitment and
leadership by ensuring that EH&S is incorporated into business decision
making, participating in EH&S activities and in external groups that
provide value to the organization.
A written Procedure has been developed that describes how the
12 elements of the EHSMS will be implemented.
2 EH&S Program Summary
Organization
A committee that is chaired by a senior manager, comprised of their staff
and any other necessary adhoc members, provides the strategic direction
for the EHSMS. The committee meets periodically to review and approve
procedures; plan programs and financial/human resources; review the
status of on-going programs and the progress toward goals; and to
provide direction to line and functional staffs. They ensure employees
understand the EH&S initiatives; that adequate technical skills are
available; that there is employee participation; and that the appropriate
activities, programs and procedures are in place.
EH&S responsibilities have been designated to individuals in each
office. These coordinators are under the guidance of EH&S managers
that have the proper technical skills and training. The EH&S roles and
responsibilities of management and staff have been defined.
Planning
CSS has established a written, annual EH&S plan that is a part of the
business plan. It consists of numerical goals; objectives and activities
to achieve the goals; risk reduction; legal and company compliance;
resource allocation; and implementation of other Carrier or UTC EH&S
requirements.
Accountability
A formal system has been established that holds all employees
accountable for their respective EH&S assignments, goals, objectives,
compliance, activities and performance. The system recognizes superior
performance and is part of “pay for performance,” job descriptions and
performance appraisals.
Assessment, Prevention and Control (APC)
CSS has identified and assessed EH&S hazards, including regulatory
compliance, implemented prevention and control strategies to minimize
risks. The written APC process continually identifies, assesses, prioritizes
and develops control strategies that effectively manage the risks and
hazards. This element also addresses employee medical programs;
emergency planning and response; integration of EH&S into the design
of products, services and operations; business and property transactions;
and contractor and supplier relationships.
Management Systems 3
Education and Training
EH&S education and training is provided to all segments of the workforce.
Training is conducted for new hires, transferred employees or when
there are changes in operations or laws. The written training program
includes compliance and risk based topics that address the hazards
and control practices identified in the other elements of the EHSMS and
governmental, customer and company requirements.
Communication
CSS has established a means for communicating EH&S issues
and information both internal and external to the organization. The
communication is two-way and addresses both internal and external
complaints and/or concerns. The written communication plan includes
the specific subjects; the audience, methods, feedback and technology
transfer issues.
Rules and Procedures
Rules and procedures are established and implemented at all levels of the
operation based on hazards, risks, applicable regulatory requirements and
company standards. The rules and procedures can be written, integrated
into work instructions and reviewed with employees. Compliance shall be
enforced in the same fashion as are other company rules, etc.
Inspections and Audits
Inspections evaluate relevant physical conditions, acts or omissions
of all CSS employees in relation to EH&S hazards, risks and regulatory
requirements. Audits evaluate the effectiveness of the implementation
of internal controls such as programs, procedures, policies, etc. The
inspections and audits process has been documented, includes corrective
actions and identifies those responsible for conducting them. The process
also includes training, tracking, and analysis of trends and the reporting of
results to the appropriate management level.
Incident Investigation
CSS employees are responsible for reporting and investigating EH&S
incidents, identifying root cause(s) and for implementing corrective
actions. Incidents are any unplanned event or condition that results in, or
has the potential (near miss) to result in, injury/illness; property damage;
adverse impact to the environment; adverse public opinion; or a condition
of legal non-compliance. All incidents are reported, reviewed and
investigated to the level necessary.
4 EH&S Program Summary
Documents and Records Management
CSS has designed and implemented a system for creating, distributing,
controlling and managing documents and records prepared in support of
the EHSMS. The written system includes who will retain them, what will be
retained, retention time, location and how security and confidentiality will
be maintained.
Program Evaluation
An evaluation of the implementation and effectiveness of the CSS
EHSMS is done on an annual basis. The evaluation is written and covers
how it is conducted; status of compliance with regulatory and company
requirements; effectiveness of the management system; analysis of
trends; audit results; and progress toward EH&S goals. Corrective actions
from the evaluation are incorporated into the EH&S plan.
Management Systems 5
SAFETY
SAFETY
Powered Industrial Trucks (PIT)
OSHA 29 CFR 1910.178 and 1926.600 – 602 and Canadian standards
define the requirements for the use of powered industrial trucks. A PIT is
any fork truck, platform lift truck, hand truck and other specialized lifting
truck powered by electric motors or internal combustion engines. CSS
Powered Industrial Truck Procedure S-1 was developed in compliance
with the OSHA and Canadian standards and includes, but is not limited to
the following:
• PIT operators must have successfully completed training and evaluation
specific to the applicable content outlined in OSHA 1910.178(l) and
Canadian standards.
• Only trained and authorized operators shall be permitted to operate
powered industrial trucks (rider and non-rider).
• All powered industrial trucks shall meet the design specifications
established in the American National Standard Institute (ANSI) for
Powered Industrial Trucks, Part II, and ANSI B56.7-1982 or Canadian
and CSA standards.
• All nameplates and marking on the PIT shall remain in place and be
maintained in legible condition.
• Modifications and additions that affect capacity and safe operation shall
not be performed without the manufacturer’s written approval.
• All trucks being unloaded or loaded by a PIT at a loading dock must
be secured from movement. An engineered system (Dock Locks) is
preferred but wheel chocks can be placed under the rear wheels of
highway trucks.
• Battery charging areas and flammable liquid/gas PIT fuel storage will
be located in areas designated for that purpose (i.e., flammable liquid
storage cabinets, no smoking area, outdoor gas storage and eye wash).
• Inspections of a PIV shall be performed by the operator each day prior
to placing the PIV into service and recorded on the CSS PIV inspection
form.
• Periodic preventative maintenance will be conducted based on the
schedule recommended by the manufacturer.
8 EH&S Program Summary
Elevated Work Safety
OSHA 29 CFR 1926.500 – 503 and 1910.21 – 24, CSS Cardinal Rules,
Canadian provincial safety regulations and 1926.104 defines the
requirements for walking/working surfaces at elevated heights. Carrier
Sales and Service (CSS) Elevated Work Safety Procedure S-2, was
developed in compliance with these standards and includes, but is not
limited to, the following requirements:
• Walking and working surfaces must have the strength and structural
integrity to support workers safely.
• Workers on a walking/working surface with an unprotected side or edge
that is 6 feet or more in height, shall be protected from failing by the use
of a guardrail, safety net, or personal fall arrest system. These systems
must meet the criteria specified in CSS EH&S Procedure S-2, CSA and
OSHA 1926.500 – 503.
• Workers shall be protected from falling through holes more than 6 feet
above lower levels by a guardrail, safety net, covers or personal fall
arrest systems.
• To protect CSS employees from failing objects while working;
— All workers shall wear a hard hat.
— Screens or guardrail systems with toe boards shall be used to
prevent objects from failing from the edge of the working surfaces.
• Personal fall arrest systems will consist of an approved, ANSI, OSHA,
CSA, body harness, retractable lanyard, self-locking connectors and an
anchor point (see CSS EH&S Procedure S-2 for details).
• Employee training will cover the recognition of fall hazards and the
procedures necessary to minimize the hazards. Training will be provided
that meets the competency requirements as outlined in 29 CFR
1926.503(2) will do the training. Training records will be kept. Retraining
will be done when changes occur in the workplace or employees do not
have the understanding and skill required.
• Applicable requirements of the Cardinal Rules and the CSS Safety First
Cards will be met prior to working at heights above 2 meters (6 feet).
The Safety First Card will be with the technician on every jobsite. The
technician must have thorough knowledge of the rules.
Safety 9
Ladder Safety
OSHA 29 CFR 1910.25 – 27 and 1926.1050 – 1060 (Subpart X) defines the
requirements for stairways and ladders. The CSS Elevated Work Safety
Procedure S-2, in the CSS Environmental Health & Safety Manual, was
developed to be in compliance with this standard and includes, but is not
limited to, the following requirements:
• Choose the right ladder style (i.e., step or extension), size and duty
rating for the job. Use fiberglass ladders if there is even a remote
possibility of working near electricity.
• Maximum extension ladder length one person can safely lift and handle
is 28 feet.
• The construction of all ladders will meet or exceed the requirements
of the American National Standards Institute (ANSI), the Occupational
Safety and Health Administration (OSHA) and the Underwriters
Laboratory Code (UL) as applicable.
• Read the instruction labels. Labels have information on the weight
limits, highest working levels, safety instructions, proper ladder setup
and usage. Ladders with faded or illegible labels must be replaced or
re-labeled by a qualified ladder inspection vendor.
• Inspect the ladder periodically for defects such as missing, loose,
damaged or worn parts. Be sure that working parts move properly and
that all connections are secure. Check spreaders, extension ladder
locks, flippers and safety shoes. Damaged ladders should be tagged for
repair or disposal.
• Use and climb the ladder safely:
— Fully open and lock both spreaders on stepladders.
— Be sure that all ladder feet are on firm and level ground. Don’t place
the feet on slippery or loose materials.
— Both rails of extension ladders should be fully supported at the top
and the locks fully engaged.
— Do not place the base of an extension ladder too far away from or
too close to the building. Set ladder to the proper slope requirement,
(1:4 ratio i.e., set back 1 foot for each 4 feet of length to the upper
support).
— Keep your body centered on the ladder and hold the ladder with one
hand while working, whenever possible.
— Climb facing the ladder and maintain at least 3 points of contact with
the ladder (i.e., 2 feet and one hand) alternated with four points of
contact (two hands and two feet).
10 EH&S Program Summary
— Haul materials up on a line rather than carry them.
— Do not stand above the highest safe standing level. Do not stand
above the second step from the top of a stepladder and the fourth
rung from the top of an extension ladder.
• By practicing basic maintenance you can keep ladders in proper
working order.
— Keep ladders free from oil, paint or other slippery materials.
— Employees are not certified to repair ladders. Use only external,
certified suppliers to perform ladder repairs.
— Clean and lightly lubricate moving parts such as spreader bars,
hinges, locks and pulleys.
Scaffolds
• Do not assemble or use a scaffold unless you have been trained.
• All employees must complete the CSS web based training modules on
scaffolding prior to using scaffolds.
• After set up a competent person must inspect the scaffold prior to use.
Aerial Lifts
• Only properly trained employees will be allowed to operate aerial lifts.
Documented training will be provided by the company the lift was
rented from.
• Prior to use the lift will be inspected to ensure the lift is in good working
condition.
• A personal fall arrest system will be worn at all times while working and
operating the lift.
Safety 11
Fixed Ladders
• Any fixed ladder that is not safe must not be used.
• Fixed ladders over 20 feet will have a safety cage or personal fall
restraint system or the ladder will not be used.
• Fixed ladders must be secured at all mounting locations prior to use.
• Transitions from one fixed ladder to the next must have a rest platform
installed at the transition location prior to use.
• Use and climb the ladder safely:
— Keep your body centered on the ladder and hold the ladder with one
hand while working, whenever possible.
— Climb facing the ladder and maintain at least 3 points of contact with
the ladder (i.e., 2 feet and one hand) alternated with four points of
contact (two hands and two feet).
— Haul materials up on a line rather than carry them.
— Keep ladders free from oil or other slippery materials.
— Employees are not certified to repair ladders. Use only external,
certified suppliers to perform ladder repairs.
12 EH&S Program Summary
Personal Protective Equipment (PPE)
OSHA 29 CFR 1910.132 – 138 and 1926.95 – 105 establishes the
requirement for use of personal protective equipment, clothing, shields
and barriers where hazards will be encountered that are capable of
causing injury or impairment in the function of any part of the body
through absorption, inhalation or physical contact.
The CSS Personal Protective Equipment Procedure S-3 was developed to
be in compliance with these regulations and includes, but is not limited to,
the following:
• CSS has performed PPE workplace assessments and certifications by
work category, e.g. grinding, welding etc. See the various assessment
and certification forms for details.
• All employees shall use PPE to protect their eyes, face, head, hands,
feet, ears and respiratory system whenever engineered or administrative
controls do not eliminate or reduce hazards to safe levels.
• CSS will provide its affected employees (those employees who must
use PPE) with all the necessary PPE to protect them from hazards at
their work site.
• Safety shoes with toe protection are required at all times on the jobsite.
Safety shoes must carry a stamp on the inside which indicates that they
meet the specifications provided by ANSI Z41.1 or ASTM F2413-05,
see Procedure S-3.
• CSS will supply one pair of prescription safety glasses per year to those
affected employees who wear corrective lenses.
• Safety glasses with side shields will be worn on all jobs.
• ANSI Class A, B & C rated protective helmets shall be worn where there
is the potential for head injury from failing objects or when working near
exposed energized conductors.
• Hard hats shall be worn on construction sites at all times, when
overhead work is occurring and when employees are working in
cramped conditions or in the vicinity of objects they could strike their
head against.
• Appropriately selected gloves shall be worn by employees whose
hands are exposed to any of the following hazards: cuts, lacerations,
punctures, burns, hazardous chemicals, etc.
• Respiratory and hearing protection shall be worn according the to
respective CSS specific procedures (i.e., OH-2 and OH-3).
Safety 13
• Carrier has the CSS Safety First Card, Required Minimum Personal
Protective Equipment (PPE), Tools and Equipment for Service Work
document and the Mandatory Fatality Prevention Review: Heights
Above 6 Feet or 2 Meters and Mandatory Fatality Prevention Review:
Electricity documents. All four of these documents have parts that
speak to Personal Protective Equipment (PPE).
• PPE for employees that may be exposed to arc flash is detailed in
section 9 of CSS EHS procedure S-8 “Electrical Safety” and the Arc
flash PPE matrix and standard PPE matrix found in the S-3 procedure.
14 EH&S Program Summary
Asbestos Awareness
OSHA 29 CFR 1910.1001, 1926.58, 1926.1101; EPA 40 CFR 763 and
various State, Provincial and local regulations, e.g. NYS Code Rule
56 define the requirements for the management of asbestos. The CSS
Asbestos Procedure S-4, in the CSS Environmental Health & Safety
Manual, was developed to be in compliance with this standard and
includes, but is not limited to, the following requirements:
Definitions
ACM — Asbestos Containing Material
TSI — Thermal System Insulation
PACM — Presumed Asbestos Containing Material (all TSI and sprayed
on or troweled on surfacing materials in buildings constructed no later
than 1980.)
• Building and facility owners must determine the presence, location and
quantity of ACM and/or PACM at their facility. The owners must inform
employers and employees who will perform services in areas that
contain ACM and/or PACM of its presence.
• Building and facility owners must affix signs or labels so employees will
be notified of what materials are ACM and/or PACM, its location, and
appropriate work practices that will ensure that the materials will not be
disturbed. Signs or labels shall indicate the following:
DANGER
CONTAINS ASBESTOS FIBERS
AVOID CREATING DUST
CANCER AND LUNG DISEASE HAZARD
Safety 15
• Owners are exempt from communicating information about the
presence of building material by demonstrating that PACMs do
not contain asbestos through inspection or testing processes that
meet OSHA requirements. The owner must retain records of the
demonstrating process.
• Carrier Sales and Service (CSS) employees are prohibited from
performing any work that may disturb ACMs or PACMs. Furthermore,
CSS employees are prohibited from performing work in any areas that
will or may expose them to airborne asbestos (areas where abatement
is in progress, asbestos dust has settled, TSI coverings are open
exposing asbestos, etc.).
• CSS employees are permitted to work in areas where ACMs and/or
PACMs exist as long as the materials are safe from becoming airborne.
• CSS employees shall initially bring any job site ACM and PACM
concerns to the customer. If the concerns are not satisfactorily
addressed, the employee shall avoid the area and advise their
supervisor immediately. The supervisor is then responsible to contact
the customer and arrange for clarification or resolution of the concern.
Under no circumstances shall CSS employees be permitted to work in
the areas until the issues of concern have been resolved.
• CSS operations will not dispose of asbestos containing materials or
equipment for customers.
• CSS operations will not contract the abatement or disposal of asbestos.
• CSS employees will not take samples of asbestos.
• Gaskets will be removed following the CSS “Guideline for Removing
Gaskets” procedure in attachment A of CSS EHS procedure S-4.
16 EH&S Program Summary
Variable Frequency Drives (VFD)
The manufacturers of Variable Frequency or Speed Drives have safety
requirements for safely working on VFD or VSD’s associated with HVAC
equipment where employees are exposed to risks during servicing.
The CSS Variable Frequency or Speed Drive Procedure S-5 was
developed to be in compliance with these requirements and includes, but
is not limited to, the following:
• Carrier employees will not work on or near exposed energized
components with greater than 600 volts at any time.
• Safe practices are required to properly dissipate or bleed capacitance
from buss components to allow the servicing of drives. Check the
manufacturer’s instructions for the proper dissipation technique.
• All ladders used to service VFD or VSD will be placed on an insulated
mat or blanket.
• All electrical tools will have a CAT III rating and detection devices will
meet the UTC and CSS grounding policy.
• CSS employees will not rack out or rack in power to starters 600 VAC
or greater.
• Employees will wear the appropriate level of Personal protective
equipment (PPE) while servicing VFD or VSD equipment, e.g. arc flash,
matting, blankets, hand tools, ladders and hand protection.
• Insulated gloves, mats, blankets, arc flash PPE, and electrical test
equipment will be inspected or tested at the prescribed intervals by a
qualified vendor.
• Training on the skills and techniques necessary to safely work on
VFD or VSD and for arc flash will be provided to all exposed service
employees.
Safety 17
Life Safety Considerations
OSHA 29 CFR 1910 Subparts E and L, 1926.150, National Fire Protection
Association (NFPA) 101, and Canadian regulations establish the
requirement for the protection of life and property. The CSS Life Safety
Procedure S-6 was developed to be in compliance with these regulations
and includes, but is not limited to, the items listed below.
When you are at your office, a customer site, planning a meeting or
staying at a hotel/motel, the location shall be reviewed for the following:
• Protection and construction of the facility:
— Automatic sprinkler protection.
— Smoke detection system.
— Methods of fire alarm notification.
— Non-combustible construction materials.
• Accessibility and adequacy of fire exits:
— Exits from offices, meeting rooms, customer sites and hotel/motel
rooms are well marked and preferably lead outside to safe refuge.
— Pathways to exits should be clear and exit doors should be checked
to assure operability.
• Communication:
— The emergency response procedures should be described to all
employees, guests, meeting attendees, etc.
— All CSS personnel should read the evacuation procedures when
staying at a hotel/motel, working at customer sites and in the office.
— If you are not clear on the emergency response plan ask the location
manager or contact your supervisor.
18 EH&S Program Summary
Confined Space Entry
OSHA 29 CFR 1910.146 and 1926.21 defines the requirements for
entering confined spaces. CSS Confined Space Entry Procedure S-7,
was developed in compliance with this standard and includes, but is not
limited to the following:
• A space is classified as a confined space when it is large enough and its
configuration allows personnel to bodily enter to perform assigned work
and also meets the following requirements:
— Has limited or restricted access or exit. Tanks, cooling towers,
boilers, ductwork, storage bins, chilled water storage tanks, vaults
and pits are spaces that may limit access or exit.
— Is not designed for continuous employee occupancy.
• A permit required confined space has one or more of the following
characteristics:
— Contains or has the potential to contain a hazardous atmosphere or
any other hazard capable of death or physical harm to an employee.
— Contains a material that has the potential for engulfing an employee.
— Has an internal configuration such that employees could be trapped
or asphyxiated by inwardly converging walls or a floor that slopes
downward to a smaller cross section.
— Contains any other recognized serious safety or health hazard.
• A non-permit confined space does not contain or in regards to
atmospheric hazards have the potential to contain any hazard capable
of death or serious physical harm to an employee.
• General and comprehensive training will be provided to all employees
involved with confined spaces.
Safety 19
Available Confined Space Options
1. CSS employees shall, without entering the space, make every
effort practical to eliminate hazards in a space. This is called
reclassifying the space and thus avoids the need to implement
the permit confined space procedures.
2. If the only actual or potential hazard that cannot be eliminated in
the space is atmospheric in nature (i.e., oxygen deficiency, toxic
fumes), then the OSHA alternate procedure may be used.
3. If the space cannot be reclassified or the alternate procedure
cannot be used then the permit required confined space
process must be used.
• Contractors and subcontractors used by CSS must comply with
OSHA 1910.146, CSS Procedures and or customer confined space
requirements.
• Rescue services will be established during permit required confined
space entry.
• CSS will comply with all customer requirements pertaining to confined
space as long as compliance with 1910.146 is maintained and CSS
employee EHS is not compromised.
20 EH&S Program Summary
Electrical Safety
OSHA 29 CFR 1910 Subpart S, 1926 Subpart K, Safety First Card, NFPA
70 E and CSS Cardinal Rules define the requirements for worker electrical
safety. The CSS Electrical Safety Procedure S-8, and Electrical Safe
Work Practices training program were developed in compliance with this
standard and include, but are not limited to the following:
• The Carrier Required Minimum Personal Protective Equipment (PPE),
Tools and Equipment for Service Work document also requires several
electrical items. (FR Uniforms, GFCI, Multi-meter, insulated hand tools,
double insulated or grounded electrical tools, LO/TO devices.)
• Applicable requirements of the CSS Safety First Card and the
Mandatory Fatality Prevention Review: Electricity documents will be
met prior to working on electrical equipment and circuits. The fatality
prevention review document will be with the technician on every job and
read through before they start the job.
• Electrical Safe Work Practices training shall be provided initially to all
employees and be documented in the office record keeping files.
• FR uniforms and associated arc flash PPE are required to be worn for all
electrical exposures above 50 volts.
• CSS employees are prohibited from working on energized high voltage
(greater than 600 Volts AC), thus a duly licensed and qualified electrician
must perform the service (an outside contractor or customer employee).
Employees are permitted to work on VFD / VSD of less than 600 volt
AC input power that generate greater than 600 volts DC power on
associated internal buss bars for diagnostic and testing purposes.
• Conductive tools, equipment, accessories and articles may not be
used or worn if they have the potential to contact exposed, energized
components.
• Jewelry is prohibited while working.
• All portable power tools shall be of the three wire grounded type or
double insulated.
• Only load rated devices shall be used to open circuits under load
conditions except in an emergency.
• Properly rated eye and face protection shall be used where there
is a danger for electrical flashes or arcs or a potential for electrical
explosions.
• Lockout / Tagout (LOTO) procedures shall be followed per CSS’s
Hazardous Energy Sources Procedure S-10.
Safety 21
Ground Fault Circuit Interrupters (GFCI)
• The Occupational Safety and Health Act (OSHA) 29CFR 1926.404(b)
(1) and the Carrier Procedure on the Use of Ground Fault Circuit
Interrupters (3/29/96) have requirements that impact electrical safety.
• It is the Procedure of Carrier to require the mandatory use of ground
fault current interrupters whenever any mechanical work using electrical
tools, cord sets, extension lights, etc., is being performed.
• Applicable requirements of the CSS Safety First Card and the
Mandatory Fatality Prevention Review: Electricity documents will be
met prior to performing electrical work. The fatality prevention review
document requires technicians to have the list with them on every
job and read through it before they start the job. This list does have
a specific section on Tools and Equipment that looks at GFCI.
• The Carrier Required Minimum Personal Protective Equipment (PPE),
Tools and Equipment for Service Work document and the CSS Cardinal
Rules also require the use of a GFCI.
• The Carrier Procedure on the Use of Ground Fault Circuit Interrupters
also requires the use of a GFCI on portable electrical tools and
equipment below 240 Volts.
• The ground fault current interrupter is to be used in addition to, not in
lieu of, the normal three or four-wire equipment grounding conductor.
• The ground fault interrupter senses a ground fault the instant there is
a current flowing to ground and in milliseconds, shuts off the power
before an accident can happen. This broadens the margin of safety
in a previously unguarded area of possible danger.
• The ground fault interrupter can be a small (hand-held type) three-
prong, plug-in unit, for extension cord sets and cord connected
electrical tools. It plugs into existing three-prong straight blade,
U-grounded outlets. Additionally, it can be inline, built into a circuit
breaker or outlet.
Verifying Grounds on Equipment
• All equipment will be tested for proper grounding or wire insulation
loss prior to touching or starting any service work or new equipment
start-up activity.
22 EH&S Program Summary
Arc Flash Protection
• All CSS employees will comply with the requirements of NFPA 70 E or
CSA, as applicable, for arc flash protection.
• Employees will wear the appropriate level of PPE as determined in CSS
Procedure S-08 as per the Hazard/Risk Classification. PPE protects
the employee from arc flash releasing energy that could cause severe
injury or death. Proper PPE protects from electrical shocks or burns
due to contact, clothing igniting in the extreme temperatures of a arc
flash, flying debris from explosion of components and molten metals
being carried out from the explosion site due to the high temperatures
experienced, 35,000 degrees, and the rapid expansion of air in an arc
flash zone.
• All employees will follow safe work practices when exposed circuits of
50 volts or greater while performing any work activity.
• Carrier Employees will not work on or near exposed energized
components with greater than 600 volts at any time. Safe distance
of greater that 10 feet will be maintained to all exposed energized
components at all times.
• Employee will maintain a safe distance of 10 feet boundary around
all exposed electrical parts. Only qualified persons may work within
a 4 feet boundary. All qualified persons working within the 4 feet
boundary must wear arc flash protection PPE. See Attachment B in
Procedure S-08 electrical safety for approach Boundary guidance.
• Carrier employee will not rack out or rack in power to starters 600 VAC
or greater. A qualified person, but not a CSS employee, will perform all
de-energizing or energizing of power supplies to equipment requiring
service activities such as electrical motor starters. A Carrier employee
will witness that the qualified person’s electrical testing device works
and will witness that all energies are at zero state.
Safety 23
Motor Vehicle Safety
The UTC Standard Practice 12 (SP-12) and the CSS Employee Motor
Vehicle Safety Procedure S-9 covers the safe use and operation of all
motor vehicles for CSS employees who may drive a vehicle while on
company business, or who may drive a company vehicle at any time. It
includes, but is not limited to the following:
• All occupants shall wear safety restraints while operating or riding in any
motor vehicle while on company business.
• Only Carrier employees may drive service vehicles assigned to hourly
employees and only for business purposes. Personal use of a company
vehicle is prohibited for all hourly employees.
• Salaried Employees shall have all infants riding in a company vehicle
properly secured in an appropriate child restraint system. Children shall
not accompany employees while on company business.
• Employees are to comply with all motor vehicle traffic laws while
operating a company vehicle or any motor vehicle on company
business.
• All individuals driving a company vehicle or driving any motor vehicle
while on company business are required to have a valid driver’s license
and comply with all conditions affecting the license. Employees found
to be driving with a revoked, expired or suspended license may be
subject to disciplinary action.
• Employees are prohibited from operating a company vehicle or any
motor vehicle on company business, while their judgment or faculties
are impaired. Such impairment may be caused by consumption of
alcoholic beverages, drugs, medications, fatigue, lack of prescription
lenses, etc.
• When transporting hazardous materials, the driver will comply with DOT
or CSA, as applicable, regulations. See CSS EHS Procedure E-6 for
more details.
• Employees are prohibited from the transportation of hitchhikers or
strangers in a company vehicle or any other motor vehicle while on
company business.
• Communication devices such as cell phones, PDAs, laptops, etc. shall
not be used while driving for any reason, unless the use of that device is
performed “hands free.”
• Driving record reviews may be conducted on employees involved in
motor vehicle accidents and all employees periodically. Drivers with a
currently suspended or revoked driver’s license, a DUI, DWI, or motor
vehicle felony conviction can be subject to disciplinary procedures.
24 EH&S Program Summary
• Drivers must report all motor vehicle citations they receive to their
immediate manager or supervisor.
• Drivers must report motor vehicle accidents to their supervisor
immediately and follow the directions on the PHH card. Accidents
involving injuries must be reported to the CSS Medical professional or
EH&S Manager.
Safety 25
Control of Hazardous Energy Sources
OSHA 29 CFR 1910.147 and .333 and 1926.417 defines the requirements
for de-energizing equipment or processes for the purpose of repairs,
maintenance or installation (lockout/tagout). The CSS Control of
Hazardous Energy Sources Procedure S-10, in the CSS Environmental
Health & Safety Manual, was developed in compliance with this standard
and includes, but is not limited to, the following requirements:
• Lockout and tagout (LOTO) shall be implemented for all energy
sources that might cause unexpected movement, personal injury,
or property damage. This includes electrical, mechanical, hydraulic,
thermal, pneumatic, compressed gas energy, and potential energy from
suspended or overhead objects and compressed springs.
• A lockout and tagout system shall always be used if equipment is
capable of accepting a lockout or tagout device. Only if the equipment
is not capable of accepting any form of lockout device may the tag-out
system alone be used.
• All employees involved with working on the equipment or process shall
apply their own individual lock. A multiple lockout device can be used if
necessary.
• Each worker shall have his or her own designated lock and the only
key to that lock. Lockout/tagout devices are to be used for lockout
operations only.
• A tagout system shall always be used in addition to the lockout or
system. Tagout devices must indicate:
— The reason for the lockout.
— How that person may be reached.
— The identity of the person who applied the device.
— The date and time the tag was put in place.
• A survey shall be conducted to identify what energy sources need to
be locked and blocked out, and the appropriate method for locking
and blocking out the equipment or process that is to be serviced. Only
persons who are thoroughly familiar with the equipment or process shall
conduct the survey.
See the CSS Lockout and/or Tagout Reminder Tag for additional
information. The following procedure shall be referenced and used:
26 EH&S Program Summary
Steps for De-Energizing:
1. Locate and identify all energizing devices (disconnects, breakers,
valves). If identification does not already exist, mark each device
indicating its function (i.e., Line #1, Chiller #4, 480 Volts).
2. Notify all affected employees that a lockout/tag-out is scheduled to
occur.
3. Know and follow shutdown procedure for the equipment or process that
is to be locked or blocked out.
4. Install lockout and tag-out devices on all energy sources.
5. Bleed or drain stored energy (capacitance, pressurized oil, water, steam,
refrigerant, etc.).
6. Attempt to activate the device to ensure it is inoperable (except 3 phase
equipment).
7. Verify that energy has been isolated with a meter or similar test device.
Steps for Re-Energizing
1. Check that non-essential items have been removed from area.
2. Check that equipment components are operationally intact.
3. Ensure all employees are safely clear of equipment. Notify all affected
employees that the lockout/tag-out devices will be removed.
Rigging Equipment
OSHA 29 CFR 1910.179, 1926.551 etc., defines the requirements for
rigging and hoisting equipment The CSS Rigging Procedure S-11, in
the CSS Environmental Health & Safety Manual, and the Carrier Material
Handling and Rigging Manual were developed in compliance with these
standards and includes, but are not limited to, the following requirements:
• Rigging equipment shall be selected to fit the load and shall be
maintained in safe working condition.
• Equipment shall be inspected annually by a qualified vendor for defects
as well as a visual self-inspection conducted before and after each use.
Defective equipment shall be tagged and sent out for inspection/repair
or functionally incapacitated and disposed of.
• Chain hoists and lever pullers shall be inspected and cleaned per
manufacturer’s recommendations on a regular basis by a qualified
vendor.
Safety 27
• Equipment with any of the following defects shall be removed from
service for repair or disposal:
Nylon and Polyester Slings
— Broken or unraveled stitching
— Missing or illegible load rating tag
— Distortion, cracks, or sharp edges on metal hardware
— Snags, punctures, tears or cuts
— Wear abrasions revealing colored wear indicator thread
— Chemical deterioration
— Burns, melting, weld splatter or heat charring
Wire Rope Slings
— Corrosion
— 10% loss of rope diameter
— 1/3 loss of outer wire diameter
— Broken wires
— Severe kinks
— Bird caged or crushed
— Weld splatter
— Electrical arc burns
Chains and Attachments
— Nicks or gouges
— Twisting or other distortions
— Excess wear
— Stretching
— Pitting
— Weld splatter damage
— Cracks
— Cracked, bent or opened hooks
Chains and Wire Hoists and Lever Pullers
— Wire rope or chain and attachment defects
— Clutch slippage
— Cracked, distorted, bent or otherwise damaged components
— Missing or distorted safety latches
• Rigging equipment shall be repaired using only components supplied
from or approved by the manufacturer.
28 EH&S Program Summary
Working in Cooling Towers
The CSS Working in Cooling Towers Procedure S-12, in the CSS
Environmental Health & Safety Manual, was developed as standard
working instructions for working in cooling towers and includes, but is not
limited to, the following requirements:
• Prior to entering or performing work in a cooling tower, CSS personnel
shall perform an assessment of the safety risks of performing the job.
• Risks related to confined space, elevated work, electricity, control of
hazardous energy and others will be reviewed.
• Personal Protective Equipment (PPE) and other control measures will be
utilized to abate any risks that are identified.
• Cooling tower water will not be in circulation when work takes place.
Circulation will be ceased for at least 10 minutes prior to the start of
work.
• When feasible, adjacent cooling towers shall not be in circulation when
work takes place. Circulation will be ceased for at least 10 minutes prior
to the start of work.
• Respiratory protection is not required for CSS personnel performing
work in a cooling tower, as described in procedure S-12. Respiratory
protection is available, however, on a voluntary basis, at the discretion
of the person performing the work.
• The use of any respiratory protection will comply with the CSS
Respiratory Protection Procedure OH-2.
• All affected employees shall be made aware of the requirements of this
procedure.
Compressed Gas
OSHA 29 CFR 1910.101, 1910.253 and 1926.251, the Compressed
Gas Association and CSA defines the requirements for Compressed
Gas safety. The CSS Compressed Gas Procedure S-13, in the CSS
Environmental Health & Safety Manual was developed in compliance
with these standards and includes, but is not limited to, the following
requirements:
• Moving Compressed Gas Cylinders
— Valves closed and protective caps on.
— Cylinders can be hoisted when secured on a cradle or pallet.
— Acetylene shall be secured vertically in a vehicle.
Safety 29
— Remove regulators during transport.
— Secure cylinders with nylon or rope ratchets, no bungee cords are
allowed.
• Safety Procedures
— Cylinders will be kept away from sparks or flame
— Cylinders will not be subjected to > 120 degrees F (49°C).
— All compressed gas apparatus shall be free of oil or grease.
— When a wrench is used on a cylinder valve it will remain in place
when the cylinder is in use.
— All cylinders will have a label of the contents.
— Never tamper with safety devices in cylinders or valves.
• Torches and Regulators
— Torches, regulators and hoses will be inspected before each use.
Defective equipment will not be used.
— Torches will be ignited with friction lighters only
— Back flow and or back flash device shall be used.
• Storage of Cylinders (Warehouse)
— It is preferred that no oxygen and acetylene be stored in service
warehouses.
— Only store oxygen and acetylene tanks sized R, Q, MC or B is
necessary.
— Oxygen and acetylene will be separated by a minimum of 20 feet or a
minimum 5 foot high barrier with a minimum 30 minute fire resistance
rating.
— Empty cylinders will be labeled
— Areas where cylinders are stored must have proper signs posted.
• Storage of Cylinders (Service Vehicles)
— Cylinders will be tightly secured by safety chains, nylon or rope
ratchet binders. In the upright position. No bungee cords.
— No large acetylene cylinders will be transported.
— Protective dust caps will be installed on all R, Q, MC or B cylinders
without screw on valve caps when transported.
30 EH&S Program Summary
— No cylinders will be stored next to the rear doors or back of a van or
in the back compartment of a service body truck.
— Larger cylinders will be transported to and from job sites by the gas
vendor.
• Refrigerant Cylinders
— All refrigerant disposable cylinders being readied for disposal must
have all refrigerant removed and all refrigerant vapors recovered to a
recovery/reclaim cylinder (marked mixed refrigerant). All disposable
cylinders must be evacuated to four inches of mercury vacuum on
the disposable cylinder being readied for disposal.
— After the vacuum has been achieved, the knock out on the cylinder
needs to be punched or drilled out.
— The tank is now ready for disposal in the proper trash container or
via a scrap vendor.
— All refrigerant recovery/reclaim cylinders should be tested per DOT
requirements every five years. Per DOT requirements, do not fill
a cylinder if the present date is more than five years past the test
date on the cylinder. The test date will be stamped on the collar of
cylinders.
Work-Related Injury and Illness Management
Carrier EHS SWI-007 Workers’ Compensation, EHS SWI-014- Work-
Related Illness & Injury Management, Reporting and General Medical
Guidelines for U.S. facilities that do not have Carrier Medical Departments
and UTC Procedure 33-Serious Injury Report defines the requirements for
Injury and Illness Management. The CSS Work-related Injury and Illness
Management Procedure S-14, in the CSS Environmental Health & Safety
Manual, was developed in compliance with these standards and includes,
but is not limited to, the following requirements:
• Establish Contact with Local Medical Providers
— The CSS Medical Professional will coordinate efforts to identity local
Occupational Health Clinics (US only).
— The CSS Medical Professional will coordinate medical treatment
plans with local medical providers (US only).
• Medical and First Aid Treatment
— Injured employees will receive prompt medical attention.
— Any injury will be attended to as quickly as possible to reduce any
adverse effects.
Safety 31
• Communication
— The supervisor will initiate contact according to the injury process
chart (US only).
— The U.S. CSS Medical Professional will be the primary contact for
Workers’ Compensation.
— UTC serious injuries or fatalities require immediate and additional
reporting.
• Investigation
— An incident investigation with root cause will be completed in 2 days
— Lessons Learned postings shall be created within 2 days.
— The supervisor will schedule a conference call review and finalize the
incident report in 5 business days.
• Return to Work
— Alternative work shall be provided within prescribed restrictions.
— The treating medical care provider will be informed of the availability
of alternative productive work.
Contractor Safety
OSHA 29 CFR 1926.16, United Technologies Corporation’s EH&S
Standard Practice 10 (SP-010), and CSS Contractor EH&S Procedure
S-15, defines the requirements for contractors’ and sub-contractors’
EH&S. The CSS EH&S Management System Manual, Element 5 and Daily
Reference Guide were developed to be in compliance with this standard
practice and include, but are not limited to, the following requirements:
• Local management will implement, ensure awareness and support the
Contractor EHS program.
• Each CSS operation will assign a contract coordinator who will be
responsible for the following:
— Will be familiar with the requirements in Contractor EHS program.
— Providing selected contractors with a copy of CSS EHS Contractor
Requirements, Safety First Card, EH&S Program Summary,
Technician EHS book and to obtain the information in the “CSS
Contractor EHS Requirements
— Inform all contractors that all fatalities, serious injuries resulting in
permanent disability, major environmental incidents and violations of
law resulting in legal notice will be reported.
32 EH&S Program Summary
• Carrier job supervisors who are responsible for overseeing contractor
activities at the job site shall:
— Inform all contractors and subs that all Carrier, customer and
governmental rules will be adhered to.
— Provide the contractor, during each visit to the site, with a verbal
assessment of the contractor’s EHS performance.
— The inspection schedule is as follows: 1 - 3 day projects = no
inspection; 4 day – 3 month projects = 1 inspection and 3 month –
1 year = quarterly inspections.
— Ensure that the contractor immediately corrects all noted deficiencies
and notes serious deficiencies are noted in the file and disciplinary
log.
• The general requirements for contractors and subcontractors while
performing work for Carrier include, but are not limited to the following:
— Acting in a safe and environmentally responsible manner, maintaining
compliance with Carrier’s Contractor EHS Requirements and all
applicable EH&S laws and regulations.
— Accepting sole responsibility for acts or omissions by contractor
employees with respect to environmental or safety risks, incidents,
or liabilities encountered by the contractor.
— Accepting without appeal, termination of the contract if Carrier
determines that the contractor has falsified any required
environmental or safety information, or if Carrier determines that
the contractor is significantly deficient in environmental or safety
performance or capabilities.
— Allowing Carrier to inspect the contractor activities at Carrier’s
discretion and to immediately correct any noted safety or
environmental deficiencies.
• Specific requirements for contractors and subcontractors whose
services include labor values at more than $5,000 in a year on an annual
basis:
— Submit a completed Carrier Contractor EH&S Qualification Submittal
form.
— Submit a copy of available Contractor EH&S Procedures.
— Submit a listing of EH&S training provided to employees in the past
three years.
• All submittals not meeting the minimum selection criteria will be sent to
the EHS manager for final approval.
Safety 33
Hot Work Program
OSHA 29 CFR 1910.252 and 254 defines the requirements for hot work.
The CSS Hot Work Procedure S-16, in the CSS Environmental Health &
Safety Manual was developed in compliance with these standards and
includes, but is not limited to, the following requirements:
• General Procedures
— Flammable or combustible materials must be removed from the area.
If materials can’t be moved a proper welding curtain must be used.
— An ABC rated fire extinguisher must be available in the work area.
— A fire watch must be used when: An ‘other than minor fire’ could
develop; Combustibles are within 35 feet; Combustibles more than
35 feet away are easily ignited; Combustibles are exposed by a
wall/floor opening within 35 feet; Combustibles are adjacent to the
opposite side of a metal partition/roof/ceiling.
— Before welding/cutting the supervisor must inspect the area and
complete a hot work permit.
— Completed permit records will be maintained in the respective
job file.
• Welding Safety
— Never carry or use butane lighters while welding.
— Refer to the PPE Workplace Assessment for welding, cutting and
brazing.
— Keep the work area clean and free of hazards.
— Use a suitable cylinder truck, chain or other device to secure the
gas cylinders.
— Shield others from the sparks and UV radiation produced from
welding.
— When welding in wet areas, wear rubber boots and stand on a dry
insulated platform.
— Do not weld on sealed containers or compartments without providing
vents.
34 EH&S Program Summary
Lead Awareness
OSHA 29 CFR 1910.1025, 1926.62 and CAL OSHA 1532.1 define the
requirements for working with lead. The CSS Lead Awareness Procedure
S-17, in the CSS Environmental Health & Safety Manual was developed in
compliance with these standards and includes, but is not limited to, the
following requirements:
• Lead exposure affects six bodily systems, e.g. digestive,
reproductive, circulatory, nervous, urinary and skeletal.
• The two main routes for lead to enter the human body are by
inhalation and ingestion.
• Customers are required to post warning signs in areas where
an employee’s exposure to lead is above the OSHA Permissible
Exposure Limit. (PEL)
• CSS employees are prohibited from performing any work where the
potential for lead exposure exists.
• Contact your supervisor if there is any incident which has the
potential for lead exposure.
• All employees shall review this policy where the potential of lead
exposure exists.
Hydrogen Sulfide
OSHA 29 CFR 1910.1000 and 1926.55 define the requirements for
working with hydrogen sulfide. The CSS Hydrogen Sulfide Awareness
Procedure S-18, in the CSS Environmental Health & Safety Manual was
developed in compliance with these standards and includes, but is not
limited to, the following requirements:
• Hydrogen sulfide exposure causes respiratory paralysis or irritation
and eye and skin irritation.
• The main route for hydrogen sulfide to enter the human body is
through inhalation.
• Oil refineries have the potential to produce hydrogen sulfide. Other
locations that may have hydrogen sulfide are sewers, cesspools,
stagnant water or anywhere the decay of organic materials occurs.
• Hydrogen sulfide can be detected by direct read fixed or portable
monitors as well as colorimetric detector tubes and personal
monitoring.
• Identification of hydrogen sulfide concentrations is the
responsibility of the host-facility operator.
Safety 35
• Process areas in most refineries have identified potential hydrogen
sulfide exposures and have indicated the exposure areas with
signs that read “Caution High levels of Hydrogen Sulfide May Be
Present”.
• Most host facilities have hydrogen sulfide emergency plans that
explain what the procedure is when hydrogen sulfide is present.
• All employees shall review this policy where the potential of
hydrogen sulfide exposure exists.
Benzene
OSHA 29 CFR 1910.1028, 1926.1128, CAL OSHA 5218 and WAC 296-
849-190 define the requirements for working with benzene. The CSS
Benzene Awareness Procedure S-19, in the CSS Environmental Health
& Safety Manual was developed in compliance with these standards and
includes, but is not limited to, the following requirements:
• The main routes for benzene to enter the human body are through
inhalation, absorption and ingestion.
• Customer work sites that have benzene present are required to
post signs at the entrances to regulated areas that say “Danger,
Benzene, Cancer Hazard, Flammable – No Smoking, Authorized
Personnel Only, Respirator Required”.
• Carrier Sales and Service employees are prohibited from
performing work in regulated areas where the potential for benzene
exposure exists.
• Locations where benzene exposure can occur are petroleum
refining sites, tank gauging and field maintenance.
• In case of benzene related medical emergency, utilize the
customer’s work site emergency plan if it is available or call 911
and report any incidents to your supervisor.
• All employees shall review this policy where the potential of
benzene exposure exists.
36 EH&S Program Summary
OCCUPATIONAL HEALTH
OCCUPATIONAL HEALTH
Hazard Communication
OSHA 29 CFR 1910.1200, 1926.59 and WHMIS in Canada establishes
the requirements for ensuring employees are aware of the hazardous
chemicals they may be exposed to in the work place. The CSS Hazard
Communication Procedure OH-1, in the CSS Environmental Health &
Safety Manual, was designed to be in compliance with this standard and
includes, but is not limited to, the following requirements:
• All employees shall receive training on Hazard Communication prior to
starting work in their assigned position, and annually thereafter.
• The training shall include a review of the following:
— The chemicals that may be used or encountered as part of the job
duties.
— The physical and heath risks of the chemicals.
— Symptoms of over exposure.
— How to determine the presence or release of hazardous chemicals.
— How to reduce or prevent exposure to hazardous chemicals through
use of control procedures, work practices, and personal protective
equipment.
— Procedures to follow if employees are overexposed to hazardous
chemicals.
— How to obtain and read a Material Safety Data Sheet (MSDS).
• Prior to introducing a new chemical, each employee will be given
information and training as outlined above.
• All new chemicals must be reviewed and approved by the EHS Manager
prior to purchase and use.
• MSDSs for all hazardous chemicals used during CSS services
shall be obtained utilizing the vendor defined for providing
MSDS documentation. For Carrier chemicals purchased, go to
www.CarrierTotaline.com then EPIC then MSDS for Carrier products.
• All containers holding chemicals shall be labeled to identify the
contents, regardless if the chemical is hazardous or not. Containers
holding hazardous chemicals must also indicate the appropriate hazard
warning, the chemical name and address of the manufacturer.
38 EH&S Program Summary
• Contractors and customers who may be exposed to hazardous
chemicals used by CSS shall be provided with hazard information about
each chemical. MSDSs shall be provided if requested.
• On construction jobsites, physical copies will be maintained on the
jobsite per construction standards.
Occupational Health 39
Respiratory Protection
OSHA 29 CFR 1910.134 and 1926.103 defines the requirements for
protecting employees from overexposure to airborne contaminants.
The CSS Respiratory Protection Procedure OH-2, in the CSS
Environmental Health & Safety Manual, was developed to be in
compliance with this standard and includes, but is not limited to, the
following requirements:
• Employees must maintain a detailed knowledge of the hazardous
materials they may be exposed to (through MSDSs, training, verbal and
written communications). This knowledge is essential for assessing
the need for respiratory protection when overexposure is possible or
unavoidable.
• Mechanical ventilation shall always be used to attempt to minimize the
airborne concentrations of hazardous materials to safe levels.
• Employees shall be trained annually on the appropriate respiratory
protection to use for each hazardous material they may be exposed to.
Only approved respirators shall be used.
• Prior to using a respirator, each employee must pass a medical
evaluation verifying they are physically fit to use a respirator. Evaluations
shall be conducted on a periodic basis to identify changes in health
status that could affect an employee’s fitness to wear a respirator.
• Prior to using a respirator, each employee must pass a fit test on the
specific model respirator they will use. No facial hair is permitted that
would impede with the fit of the respirator.
• An employee must perform a positive and negative fit test each time
they don a respirator.
• Respirators shall be inspected for defects before and after each use
by the employee using it, and identified components shall be replaced
promptly.
• Respirators shall be cleaned after each use.
• Respirators must be stored in a sealed plastic bag or container in a
manner that will protect it from damage or contamination.
40 EH&S Program Summary
Hearing Conservation
OSHA 29 CFR 1910.95 and 1926.52 and .101 defines the requirements for
protecting employees’ hearing from exposure to occupational noise. The
CSS Hearing Conservation Procedure OH-3, in the CSS Environmental
Health & Safety Manual, was developed to be in compliance with these
standards and includes, but is not limited to, the following requirements:
• Affected employees are those employees who perform applied work
either full time or part time (applied and unitary).
• Testing has shown these employees are exposed to noise levels that
exceed 85 dBA for an 8 hour TWA
• Affected employees shall receive training annually on:
— The effects of overexposure to noise.
— Methods to prevent overexposure.
— The proper use and care of hearing protection equipment.
• Feasible administrative or engineering controls shall be utilized to
eliminate noise exposure. If they are unsuccessful, use of hearing
protection shall be enforced.
• Affected employees shall wear hearing protection in all designated/
posted high noise areas and whenever there is a chiller running in
the equipment room. The company shall provide, at no cost to the
employee, all appropriate hearing protection.
• Employees shall report symptoms of suspected hearing loss to their
supervisor.
• In areas not posted or designated with high noise warnings:
— Employees shall apply the rule of thumb for wearing hearing
protection when noise levels prevent conversation at a normal voice
level from a distance of up to three feet.
— Employees shall notify their supervisor and if necessary, sound levels
shall be measured to verify the need for hearing protection (ear plugs
or muffs).
• Annual audiometric hearing evaluations will be made available to
affected employees or their representatives.
• Employees shall inspect hearing protection equipment for signs of wear
or defects and replace identified components promptly. All hearing
protection will have noise reduction rating (NRR) of 26 dBA or greater.
Occupational Health 41
Material Handling and Ergonomics
United Technologies Corporation’s Standard Practice (SP-007) defines
the requirements for protecting employees’ from ergonomic injuries.
The CSS Procedure on Material Handling and Ergonomics, OH-4, in
the CSS Environmental Health & Safety Manual, was developed to be
in compliance with this standard and includes, but is not limited to, the
following requirements:
• A high potential for injuries exist when materials and equipment
are handled during service operations both at the office and at the
customer job site. To reduce the risk of material handling injuries, (back
strains/sprains, hernia, shoulder/arm/leg strain, etc.), CSS employees
should identify material handling and ergonomic problems and report
them to their supervisor.
• Plan for the best use of material handling equipment whenever possible,
such as loading ramps, two wheel handcarts, hoists/slings, fork trucks,
hydraulic lift-gates, stair climbers etc.
• The first rule is to lighten the load whenever possible! This may mean
that two trips to the destination will be necessary or soliciting the help
of another person when needed.
• Always push carts, hand trucks, and dollies rather than pulling them.
• Use safe lifting techniques:
— Conduct a preliminary survey of your travel route to identify and
address hazards and obstructions.
— For heavy lifting, perform some back stretching exercises first to
limber up your back muscles.
— For repetitive lifting, take occasional breaks.
— Face the load with your feet shoulder width apart and one foot
slightly ahead of the other.
— Bend your knees to squat down with your back straight and have a
good grip on the load.
— Lift the load slowly with your legs while keeping your back straight,
do not jerk.
— Keep the load close to your body.
— Turn with your feet, not your waist.
— Lower the load slowly with your legs while keeping your back
straight.
42 EH&S Program Summary
Bloodborne Pathogens
OSHA 29 CFR 1910.1030 defines the requirements for protecting
employees from exposure to blood borne Pathogens. The CSS Blood
Borne Pathogens Procedure OH-5, in the CSS Environmental Health &
Safety Manual, was developed to be in compliance with this standard and
includes, but is not limited to, the following requirements:
• All CSS employees who assist/respond to a medical emergency are
expected to follow universal precautions to prevent contact with blood
and other potentially infectious materials. Using universal precautions
means that you treat bodily fluids as if they are infectious.
• The following personal protective equipment (PPE) will be used when
dealing with bodily fluids: latex gloves, a CPR one-way valve mask,
protective garments and eye protection.
• Where there is an area with a likelihood for potential exposure to bodily
fluids, wash your hands as soon as possible and do not eat, drink,
smoke or apply cosmetics when you are in that area.
• Contaminated clothing should be properly laundered, disposed of or
replaced.
• All contaminated materials, bandages, clothing etc., will be disposed
properly. Place the waste materials in a red plastic bio-hazard bag and
contact your EHS Manager/OHS for specific disposal instructions.
• Training will be given to employees who have the potential for exposure
to blood borne pathogens.
Occupational Health 43
Workers’ Compensation Management Guide
Carrier EHS Standard Work Instructions (SWI) 7 Workers’ Compensation,
SWI 14 Work-Related Illness & Injury Management and State Laws
define the requirements for Workers’ Compensation. The CSS Workers’
Compensation Management Guide Procedure OH-6, in the CSS
Environmental Health & Safety Manual was developed to be in compliance
with all applicable laws, Company procedures and includes, but is not
limited to, the following requirements:
• It is a CSS Procedure to comply with all state and provincial
requirements with regard to providing prompt, reasonable medical
and income benefits to employees for work related injuries, regardless
of fault, and to institute the early return to work of injured employees
through appropriate restricted (light) duty work.
• Employees shall report work related injuries to their office Workers’
Compensation Coordinator or supervisor immediately, regardless
of severity.
• If an injury results in medical treatment by a doctor or other health
professional, a First Report of Injury shall be filed with Carrier’s
insurance company or, in the case of state administered programs,
the designated state insurance company, within 24 hours.
• The insurance company will obtain target return to work dates and
medical restrictions from the medical provider. Coordinate return to
work and restrictions with local operations.
• CSS offices will make every attempt to provide productive “restricted
duty” work to injured employees to facilitate their earliest possible
return to work. Work assignments shall always be within the limits of the
medical treatment providers written instructions.
• The respective CSS Workers’ Compensation management team
is responsible for maintaining contact with the employee and the
insurance company representative to ensure effective management of
the workers’ compensation claim (change in medical condition, return
to work, legal representation, etc.).
• Requests for information from the insurance company should be
completed promptly to ensure proper benefits are provided to the
injured employee in a timely manner.
• The CSS Medical Professional must approve all medical treatment
for all work-related injuries and illnesses (not including emergency
medical care).
44 EH&S Program Summary
• Since state workers’ compensation regulations vary, questions on
specific state regulations should be directed to the CSS Medical
Professional, the local Workers’ Compensation insurance representative
or your EH&S Manager.
Heat Stress Prevention
American Conference of Governmental Industrial Hygiene (ACGIH) and
other organizations define the requirements for protecting employees from
exposure to excessive heat. The CSS Heat Stress Prevention Procedure
OH-7, in the CSS Environmental Health & Safety Manual, was developed
to be in compliance with these standards and includes, but is not limited
to, the following requirements:
• The levels of heat related illness and associated symptoms include
the following:
— Heat rash = red bumpy rash with severe itching.
— Heat cramps = cramps in the legs or stomach and excessive
sweating.
— Heat exhaustion = heavy sweating, tried and weak, nausea,
vomiting, cool moist skin.
— Heat stroke = hot dry red skin, fast pulse, weakness, confusion,
loss of consciousness and convulsions.
• Heat stress control strategies include the follow:
— Pre-job planning = check the media for the weather forecast
and any environmental key indicators, e.g. SMOG alerts, humidity
readings or air quality warnings.
— Provision of water = access to potable water in sufficient quantities.
— Access to shade = shaded areas will be open to the air or have
ventilation or cooling for a period of no less than 5 minutes.
— Personal protective equipment (PPE) = cooling neck wraps or
cooling vests.
• First aid responses to heat stress include the following:
— Early recognition of heat stress symptoms.
— Cool the skin with water and loosen clothing.
— Apply wet cloths and provide sips of water, do not gulp it down.
— Stop water consumption if nausea occurs.
— Arrange for medical attention.
Occupational Health 45
Copy Employee Medical Records
Governmental and Company standards and regulations define the
requirements for the handling of employee medical records. The
CSS Copy Employee Medical Records Procedure OH-8, in the CSS
Environmental Health & Safety Manual, was developed to be in
compliance with these standards and includes, but is not limited to, the
following requirements:
• Carrier Sales and Service (CSS) complies fully with HIPPA for work and
non-work related medical/personnel records.
• CSS maintains strict confidentiality when it comes to medical/
personnel records.
• Medical records shall be stored separately in a file cabinet or drawer.
The cabinet or drawer shall be locked and or the room the files are kept
in shall be locked.
• Under no circumstances will medical records be left unattended.
• Medical record packaging will comply with HIPPA regulations.
• Anyone handling medical records will be trained in the HIPPA
requirements.
• Employees may request their medical records by completing the
request for medical records form – “Authorization to Release Medical
Records” and returning the form to the Occupational Health Specialist –
Company RN.
• The Workers’ Compensation insurance vendor can request a copy
of the employee’s medical records by phone to the Carrier Medical
Coordinator or Workers’ Compensation Coordinator.
46 EH&S Program Summary
Guidelines for Potentially Contagious
Medical Conditions or Exposures
The Centers for Disease Control (CDC), State and Local Health
Departments, OSHA, United Technologies Corporation (UTC) Standard
Practice -3 (SP-3) and Standard Work Instruction (SWI)-007 define the
requirements for protecting employees from exposure to contagious
medical conditions. The CSS Medical Procedure Guidelines for Potentially
Contagious Medical Conditions or Exposures Procedure OH-9, in the
CSS Environmental Health & Safety Manual, was developed to be in
compliance with these standards and includes, but is not limited to, the
following requirements:
• All employees will be trained and expected to follow Universal
Precaution guidelines.
• Employees may be referred to their personal physician for further
evaluation and return to work clearance.
• In order to minimize the potential exposure, the CSS Medical
Professional and EHS Regional Manager will coordinate appropriate
communications with branch management to the potentially affected
population.
• The CSS Medical Professional will act as the focal point for potentially
contagious medical conditions and exposure issues and will be
responsible for the following:
— Assessment and evaluation.
— Obtaining recommendations from the CDC et al.
— Notification of Carrier management and employees as well as
Governmental agencies.
— Recordkeeping and reporting.
Occupational Health 47
ENVIRONMENTAL
ENVIRONMENTAL
Used Oil Management
EPA 40 CFR 261, 279 and UTC SP-11 define the requirements for used
oil management. All these requirements shall be followed at all times by
Carrier employees and subcontractors. The CSS Used Oil Management
Procedure E-1, in the CSS Environmental Health & Safety Manual, was
developed to be in compliance with this standard and includes, but is not
limited to, the following requirements:
• Centrifugal Chillers
— The customer should maintain responsibility for the proper disposal
of used oil.
— When contract terms or other customer insistence requires Carrier
to be responsible for removal of the used oil, Carrier will contract
directly with a qualified vendor to pick-up used oil directly from the
customer’s facility. Oil is to be removed under the Customer’s name
and EPA ID number or CESQG status NOT Carrier’s ID number.
— The UTC approved vendor will supply the necessary testing, labels
and seals for the drums.
— Used oil from centrifugal chillers will not be transported back to CSS
offices for disposal.
• Reciprocal Chillers
— Used oil from the service of unitary equipment can be returned to the
local CSS office for aggregation.
— No more than 5 gallons can be transported at a time.
— Used oil or other containers of less than 5 gallons must be
transported in a sealed bucket or container suitable for chemicals,
with a tight fitting lid. Buckets designed for spill clean up or spill kit
buckets may be used. The bucket must be a DOT approved bucket
with a “UN” labeling. If the container is not DOT approved or does
not have a “UN” labeling a secondary bucket must be used.
— At the CSS office, used oil storage will have secondary containment,
be labeled “USED OIL” and be disposed of after 55 gallons are
accumulated.
• Oil will be removed from equipment that is destined to be scrapped or
otherwise disposed of.
50 EH&S Program Summary
Refrigerant Management
40 CFR – Chapter 1, Part 82, Canadian EPA, UTC SP-006 and ASHRAE
15 all define the regulations for servicing air conditioning and refrigeration
appliances. All requirements shall be followed at all times by Carrier
employees and subcontractors. The CSS Refrigerant Management
Procedure E-2, in the CSS Environmental Health & Safety Manual, was
developed to be in compliance with these regulations or standards and
includes but is not limited to, the following requirements:
• The deliberate venting of refrigerants is strictly prohibited.
• Individuals who will service air conditioning or refrigeration equipment
must have a valid USEPA certification or Canadian certification to do so.
• Technicians who perform work on HCFC-123 equipment are required to
have a CSS HCFC-123 certificate.
• HCFC-123 conversion work will require a pre-approval from the BSS
NA president and Legal Counsel, an ASHRAE 15 equipment room
inspection and refrigerant monitoring as work takes place.
• A CSS customer certification form shall be completed when CSS sells
or distributes refrigerant. Sales invoices will be kept for all transactions.
• A CSS certification form for the Purchase of Refrigerant shall be
completed when CSS buys refrigerant.
• Refrigerant transportation and storage containers will be labeled with
the EPA ozone depletion warning.
• Refrigerant recovery, reclaim and recycle equipment will meet the
US-EPA standards.
• Only UTC/Carrier approved vendors will be used for the handling of
refrigerant.
• Refrigerant will be removed from equipment that is destined to be
scrapped or otherwise disposed of.
• Only DOT approved cylinders, stamped with a certification date less
than five years old, shall be used for transporting refrigerant. Cylinders
shall not be filled over 80% of their total capacity.
• Where a system contains 50 pounds of refrigerant or more, a
“Refrigerant Status Report” will be completely filled out for each
job where refrigerant circuits are accessed.
• All refrigerant recovery tools must be ARI certified tools (no homemade
equipment).
Environmental 51
• Never use refrigerant recovery equipment that is not labeled with a
sticker which states: “This equipment is approved for Carrier personnel
use on refrigerant”.
• Refrigerant must be recovered from equipment while it is at the jobsite.
Any exception must be approved by CSS Operations.
• Once you have recovered the refrigerant from a unit for disposal, you
must affix a Refrigerant Removal Certificate – EHS-004 sticker.
• All refrigerant releases regardless of the quantity must be reported to
the branch immediately.
• While servicing a 410a refrigerant circuit, use tools and equipment rated
to handle the higher refrigerant pressures.
52 EH&S Program Summary
Waste Management
40 CFR Parts 260 – 268 and 279 of the Resource Conservation and
Recovery Act (RCRA) and UTC SP-011 define the requirements for
managing hazardous waste. The CSS Hazardous Waste Management
Procedure E-3 in the CSS Environmental Health & Safety Manual, was
developed to be in compliance with these laws and include, but is not
limited to, the following requirements:
• CSS customers are liable for the proper disposal of hazardous and
other wastes generated at their site.
• Hazardous waste generated at job sites cannot be transported to a
Carrier facility for subsequent disposal.
• Hazardous wastes that are generated at CSS facilities must be
disposed of per 40 CFR Parts 260 – 268. Waste storage areas will have
secondary containment and containers will be labeled.
• When disposing of a hazardous waste, CSS offices must contact their
EHS Manager to review the process and ensure all regulations are
complied with.
• Hazardous waste will not be stored for more than 90 days. See CSS
EH&S Procedure E-3 for guidance.
• Only UTC approved vendors shall be used for disposal of CSS
hazardous wastes or recommended to customers.
• Waste disposal records, e.g. POs, manifests, correspondence and
quotes will be kept as permanent records.
• Universal waste will be managed as per the requirements in section
6.10 of procedure E-03.
• General waste should be recycled when possible.
Water Pollution Control
EPA defines the requirements of the National Pollutant Discharge
Elimination System as part of the Clean Water Act and UTC SP-009 also
defines Corporate water pollution control requirements. The CSS Water
Pollution Control Procedure E-4, in the CSS Environmental Health & Safety
Manual, was developed to aid in compliance with governmental and
customer requirements.
• Direct water discharges may include, but are not limited to, roof drains,
parking lot drains, floor drains, facility grounds and sink drains, etc.
• Typical water pollution sources include, but are not limited to, chemical
wastes (lithium bromide), boiler blow down, cooling water, wash water
(coil cleaner), condensates, etc.
Environmental 53
• Indirect discharges include any of the above that are discharged into
a sanitary sewer drain that discharges to a Publicly Owned Treatment
Works (POTW) a.k.a., sewage treatment plant. Such discharges are
subject to pretreatment standards under the General Prohibitions
Procedure.
• Both direct and indirect discharges may require permits. All actual
or potential discharges associated with CSS tasks to be performed
at customer sites must be communicated to the customer using the
appropriate MSDS. The customer shall evaluate each circumstance
for permit compliance and must authorize all discharges. Authorization
must be documented on the CSS customer service report (CRS) signed
by a customer representative.
• If discharges are not authorized, the pollutants must be captured for
customer disposal, or alternate methods must be used that will not
generate a pollutant.
Disposal of Empty Containers and Used Rags
EPA 40 CFR Part 261 defines the requirements of the Resource
Conservation and Recovery Act (RCRA) for managing hazardous
waste while UTC SP-011 defines corporate requirements for managing
hazardous waste. The CSS Procedure E-5 Disposal of Empty Containers
and Used Rags in the CSS Environmental Health & Safety Manual was
developed to be in compliance with these laws and includes, but is not
limited to, the following requirements:
• Empty containers and rags are to be disposed of per federal, state and
local regulations. See the CSS EH&S Procedure E-5.
• Empty containers or rags can be disposed of according to any
customer requirements as long as they at least comply with all legal
requirements.
• Containers are considered empty if all the material has been removed.
• Containers that have held hazardous materials or waste should be
disposed of according to the Hazardous Waste section of this book.
• When rags are contaminated with solvents, paint or bromide, etc.,
they may be considered hazardous waste and need to be disposed of
according to the Waste management section of this book.
• Rags can be sent to a laundry service, disposed of as hazardous waste
and/or put in the trash if they are not hazardous waste
• If rags cannot be disposed of at a customer site, they must be
transported and stored in a fireproof safety container approved by
the NFPA.
54 EH&S Program Summary
Shipping of Hazardous Materials
Department of Transportation (DOT) 49 CFR 171 – 173 defines the
requirements for the transportation of hazardous materials (Haz Mat).
The CSS Hazardous Material Shipping Manual and the CSS Procedure
E-6 Shipping of Hazardous Materials in the CSS Environmental Health &
Safety Manual, were developed in compliance with the DOT standard and
includes, but are not limited to the following:
• All employees who handle shipping and receiving of hazardous
materials will receive annual DOT Awareness training. Function specific
DOT training is required and retraining every 3 years minimum for
employees that have the potential to ship hazardous materials.
• Hazardous Materials shipping papers will be retained on site for two
years following the date of shipment (US only). Hazardous waste
shipping papers will be retained for three years from the date of
shipment (US only). Canadian recordkeeping policy requires permanent
records of movement.
• The Materials of Trade (MOT) exception gives regulatory relief to
companies that are not in the transportation business but need to
transport small quantities of hazardous material in direct support of their
principle business.
— MOT allows 440 pounds of certain MOT materials in total aggregate
with a maximum allowed cylinder weight of 220 pounds, to be
transported in the original packaging without the DOT required
paperwork and packaging requirements. See 49 CFR 173.6 and or
the CSS Hazardous Material Shipping Manual for details.
• If the materials of trade exception cannot be used then the following
must be done:
— The hazardous material supplier will deliver the Haz Mat directly to
the job site.
• Haz Mat will be shipped only by ground transportation.
• Small compressed gas sample shipment by air needs the written
approval of the CSS EHS Manager or designee.
Environmental 55
Spill or Release Response and Reporting
US-EPA 40 CFR, State, Local, Provincial and United Technologies
Corporation (UTC) define the requirements for the reporting and response
to spills or releases. The CSS Procedure E-7 Spill/Release Response
and Reporting Requirements in the CSS Environmental Health & Safety
Manual, was developed to be in compliance with these laws and include,
but is not limited to, the following requirements:
• Spills and releases include liquids, solids and gases. The spill or release
can be to the air, water or soil directly or indirectly. For example, a
chemical is spilled on a roof and washed, by rain to the soil, a stream or
sewer.
• If the spill cannot be contained quickly and safely, evacuate to a safe
distance, control access to the area and notify any CSS EHS Manager,
your supervisor and or branch manager immediately.
• Incident investigations will be completed for spills and releases.
Reference form 10.9 on the Daily Reference Guide.
• Employees will use personal protective equipment (PPE) as prescribed
by the CSS PPE Quick Reference Guide when cleaning up spills or
releases.
• Spill clean up waste materials will be disposed of according to US-EPA,
State, Provincial and UTC requirements.
• The US-EPA, State and local governmental agencies as well as United
Technologies Corporation (UTC) and Carrier have spill/release reporting
requirements that will be complied with.
New or Modified Sources
EPA 40 CFR, CAA Parts 1-6, CWA 100-148, RCRA 260 – 260-262 and
279, OSHA 29 CFR 1910.120 and UTC CS Standard Practices define the
requirements for new and modified pollution sources. The CSS Procedure
E-9 New and Modified Sources in the CSS Environmental Health &
Safety Manual, was developed to be in compliance with these laws or
requirements and include, but is not limited to, the following requirements:
• Any new or existing machine, process or other entity that emits,
generates or has the potential to emit or generate waste water or air
emissions must be evaluated prior to disposal, discharge, installation,
modification or alteration.
• Before any new chemical, Carrier owned machinery or waste is
purchased, disposed, combined, modified, moved or taken out of
service contact the CSS Regional EH&S Manager.
56 EH&S Program Summary
• New or modified source evaluation will determine if the chemical
emission, discharge, disposal material or new chemical are subject to
any governmental regulation or United Technology Corporation (UTC)
requirement.
• CSS is subject to a partial list of banned chemical(s) which include the
following:
— 1, 1, 1, Trichloroethane
— All class 1 ozone depleting substances (excluding refrigerants)
— 1, 1, 2 Trichloroethylene
— Methylene Chloride
— Carbon Tetrachloride
— Perchloroethylene
— Methyl Ethyl Ketone
— Cadmium
Environmental 57
GENERAL EH&S TOPICS
GENERAL EH&S TOPICS
EHS Document Signature Authority
Carrier procedures and Standard Work Instructions - EHS-0-016
defines the requirements of the signature authority. The CSS Procedure
EHS-01 EHS Document Signature Authority in the CSS Environmental
Health & Safety Manual, was developed to be in compliance with these
requirements and include, but is not limited to, the following requirements:
• The Regional Operations Manger will sign permit applications.
• The Regional EHS Manager will sign chemical inventory reports and
routine correspondence with regulatory agencies that do not involve
non-compliance.
• For non U.S. sites follow the local requirements for your Country.
• If there are questions contact the Sr. EHS Director or Business Unit
Legal representative.
• If there are no requirements the documents must be signed by the
Regional Operations Manager level or higher.
60 EH&S Program Summary
Regulatory Inspections and Visits
Carrier procedures define the requirements for regulatory inspections and
visits. The CSS Procedure EHS-2 EHS, Regulatory Inspections and Visits,
in the CSS Environmental Health & Safety Manual, was developed to be in
compliance with these requirements and includes but is not limited to the
following:
• Request the inspector’s identification; notify CSS operations and EHS
management of the inspection.
• Under no circumstances is the inspector to be unescorted during the
visit.
• Conduct the opening conference with the inspector and take notes of
the discussion.
• Review the CSS safety and security rules with the inspector and then
proceed directly to only the area in question.
• During the inspection take notes and take corrective actions on any
issued identified by the inspector.
• Take photographs and samples in tandem with the inspector.
• Conduct the closing conference and take notes of the proceedings.
• Post inspection follow up actions will be completed as soon as
possible.
• All written correspondence should be sent via certified return mail.
General Topics 61
New Chemical Approval
US-EPA 40 CFR, State, Local, Provincial, Carrier and United Technologies
Corporation (UTC) define the requirements for the approval of new
chemicals. The CSS Procedure EHS 03 New Chemical Approval in the
CSS Environmental Health & Safety Manual, was developed to be in
compliance with these laws and include, but is not limited to, the following
requirements:
• Fourteen days prior to the purchasing a new chemical the person
requesting the new chemical must obtain a MSDS from the
manufacturer.
• Once the new chemical requestor has the MSDS they must
complete the EHS 03 F form, attach the MSDS and send it all to the
Branch Manager.
• The MSDS and New Chemical Approval Form (EHS 03F) will be
forwarded to the Regional EHS Manager for evaluation.
• Evaluation criteria will include but is not limited to the following:
SARA 313, HAP, VOC, health risk, storage, use and ODS class, e.g.
no class I ODS will be approved and limited class II ODS may be
approved.
• There is a list of Materials of Concern (MOC) that is part of this EHS
procedure and this list must be reviewed as part of the evaluation
process.
• If approved the purchaser will be notified and the EHS 03 F form
will be sent back to the Branch. The EHS 03 F will be kept on file for
5 years.
62 EH&S Program Summary
EHS Records Management
US-EPA, OSHA and State, Local, Provincial and United Technologies
Corporation (UTC) define the requirements for EHS Records Management.
The CSS Procedure EHS 04 EHS Records Management in the CSS
Environmental Health & Safety Manual, was developed to be in
compliance with these laws and include, but is not limited to, the following
requirements:
• This procedure is specific to the transfer, storage, retrieval and
disposition of EHS records at Carrier Corporation.
• There is a Records Retention Schedule that is part of this EHS
procedure and this schedule must be reviewed to obtain what is
retained, by whom, the owner of the record, the security level and
retention period. The Records Retention Schedule is available at
http://cybercool.utc.com/vgn-ext-templating-car/v/index.jsp?vgnex
toid=2f890fd8c41a7110VgnVCM1000006981000aRCRD.
• Any changes to the records retention schedule must be presented
to the Corporate Records Manager for review and approval.
Changes will be communicated as updates to the Records
Retention Schedule.
• The Corporate Records Manager can be reached (315) 432-3804.
General Topics 63
When Dr. Willis Carrier began in the air conditioning industry in 1902, little
did he know the tremendous impact it would have on our daily lives.
As a global citizen, Carrier recognizes the vital importance of maintaining
a responsible balance between the comfort we create today and the world
we live in tomorrow. Carrier is an industry leader in energy efficiency,
dedicated to creating environmentally sound products and solutions
that fulfill our customers’ demands while preserving our precious natural
resources.
Carrier’s comprehensive line of chillers are the most environmentally
responsible equipment available today. Carrier’s Evergreen® positive-
pressure centrifugal chillers achieve the industry’s highest efficiency levels
while utilizing a chlorine-free, nonozone depleting refrigerant.
Carrier Sales and Service, a division of Carrier Corporation, offers unique
solutions to your equipment and service needs.
You are assured of consistent, high-quality, customized, single-source
HVAC building services from Carrier. As your service partner, Carrier
is ready to service your equipment backed by over 75 years of service
experience, national service capabilities and the latest technologies.
Therefore, Carrier’s environmentally-friendly equipment combined with
quality service is your assurance of long-term inside comfort and an
outdoor environment for enjoyment tomorrow.
64 EH&S Program Summary
Products
COOLING
• Absorption Chillers • Centrifugal Chillers
• Reciprocating Chillers • Packaged Units
• Rooftop Units • Split Systems
• Heat Pumps • Screw Chillers
• Refrigerant Management • Refrigerant Containment
Systems Products
HEATING
• Furnaces • Heat Pumps
• Packaged Heating Units • Packaged Rooftop Heating
Units
AIR & WATER DISTRIBUTION
• Central Station Air-handling Units • Fan Coil Units
• Induction Air Terminals • VAV Terminals
• Fan Powered Terminals • Linear Slot Diffusers
• Water Source Heat Pumps
CONTROLS
• i-Vu Open Protocol BMS (BACnet) • Zoned Comfort Systems “3V”
• Carrier Comfort Network • Chiller Plant Optimization
• Demand Control Ventilation Controls
Systems • Remote Monitoring Systems
(Web Based)
Services
• Comprehensive Turnkey • Energy Solutions
Replacement • Repair Services
• Service Agreements • HVAC Replacement Parts
• Control Services • Tube & Chemical Analysis
• Non-Destructive Services • Indoor Air Quality Services
• Retrofit & Upgrade Services • Remote Monitoring Service
• Refrigerant Containment Services • Temporary Heating, Cooling
• Refrigerant Conversions and Power
• Start-Up/Commissioning • Financing Solutions
• Emergency Service • Power Solutions
65
05-811-30003 Carrier Corporation 11/09 Printed in the USA
Document Number:
Electrical Safety Standard
CAR_EHSOS_S_4_07_05_EN
Owner: Approver: Rev Date: Rev #: Page:
Timothy Evans Luke Tow June 5, 2024 1 1
1.0 PURPOSE
Establish Carrier’s requirements for identifying, controlling, and mitigating risks
associated with Electrical Safety within operations.
This standard supports the implementation of Lead with Safety – Electrical Safety,
Safety Commitment.
2.0 SCOPE
2.1 This standard applies to:
Plants Logistics / R&D Field Service / Offices /
(manufacturing) Warehouses Projects* Other
✓ ✓ ✓ ✓ ✓
* Note - Field Service/Projects include Carrier Rental and other service field operations
• Subsidiaries and joint ventures where Carrier has operational control or its
interest is 50% or more.
2.2 If a requirement conflicts with country/local regulations, Carrier standards, or
customer requirements, the most stringent requirement(s) must be applied.
2.3 The Carrier Vice President of EHS must approve any deviation from
requirement(s) in this standard. Any deviation request must be documented, and
an action plan with alternative measures must be included (work instruction).
3.0 DEFINITIONS
Electrical This includes, but is not limited to, capacitors, diodes, fuses, lamps,
components inductors, meters, operation amplifiers, oscillators, power supplies,
resistors, silicon-control rectifiers, switches, transformers, transistors, or
other materials that contain movable charges of electricity.
Electrical hazardous Locations where there is a potential for contact with exposed energized
condition electrical conductors or circuit parts, where electrical conductors can
become damaged (e.g., construction areas), and where electrically
powered equipment is used in wet areas.
Electrical test Electrical testing tools include multimeters, insulation testers, circuit
meters testers, clamp meters, voltage testers, and continuity testers.
Electrical work near Task or activity executed with a high risk of exposure to live electrical
/ close to live parts parts. Near/close exposure to live electrical parts is determined by local
regulations (e.g., >15cm<65cm).
Electrical wiring A visual representation of the physical connections and layout of an
diagram electrical system or circuit
UNCONTROLLED WHEN PRINTED AND DISTRIBUTED ELECTRONICALLY
Page 1 of 13
Document Number:
Electrical Safety Standard
CAR_EHSOS_S_4_07_05_EN
Owner: Approver: Rev Date: Rev #: Page:
Timothy Evans Luke Tow June 5, 2024 1 2
Ground Fault Circuit An electrical device that protects people against line-to-ground faults by
Interrupter (GFCI) limiting fault currents to the ground caused by accidental contact with
energized parts of electrical equipment. They are also known as Earth
Leakage Circuit Breakers (ELCB), Residual Current Circuit Breakers
(RCCB), or Residual Current Devices (RCD).
Hazardous Locations where flammable liquids, gases, or vapors are handled,
(classified) locations processed, or used; combustible dust is present; easily ignitable fibers
or materials producing combustible flyings are present.
High voltage Any voltage difference between conductors higher than 1000V AC or
1500 V DC (may vary per local regulations).
Inverter An inverter drive converts the incoming AC voltage to DC using a
rectifier. Inverters can transform AC voltages to significantly higher DC
voltages.
Limited approach The distance from an exposed energized electrical conductor or circuit
boundary part within which a shock hazard exists. Only qualified employees or
employees escorted by a qualified employee are permitted within this
boundary wearing appropriate PPE.
Lockout/Tagout The application of lock and tag to eliminate and/or control hazardous
(LOTO) energy per specific procedure, ensuring that the energy-isolating device
is not tampered with until the lock/tag is removed per an established
procedure. (refer to Control of Hazardous Energy standard).
Low-voltage When something is considered low voltage, it's 50V or less.
electrical work
Multimeter An instrument designed to measure electric current, voltage, and usually
resistance, typically over several value ranges.
Non-contact voltage An electrical tester that helps to detect the presence of voltage.
tester
One line diagram A single-line diagram (also known as an SLD or one-line diagram) is a
simplified representation of an electrical system.
Personal protective PPE for electrical work includes, but is not limited to, protective shields,
equipment (PPE) fire-resistant clothing, insulating blankets, barriers, gloves, aprons,
GFCIs, circuit and receptacle testers, insulated tools, and
nonconductive ladders.
Personnel Carrier employees, contractors, and third parties.
Portable tools and Electrically powered hand tools and equipment used by maintenance or
equipment service personnel at Carrier and customer locations (e.g., electrical
plug-and-cord-connected power tools, portable lights, portable vacuum
cleaners, portable fans) and similar equipment exposed to potential
damage to the tool or the power supply cords and associated extension
cords.
It excludes plug-and-cord devices when used exclusively in an office
environment.
UNCONTROLLED WHEN PRINTED AND DISTRIBUTED ELECTRONICALLY
Page 2 of 13
Document Number:
Electrical Safety Standard
CAR_EHSOS_S_4_07_05_EN
Owner: Approver: Rev Date: Rev #: Page:
Timothy Evans Luke Tow June 5, 2024 1 3
Qualified (or Personnel with the skills and knowledge related to the construction and
competent) operation of specific electrical equipment and installations who have
personnel received training on recognizing hazards, precautionary techniques,
PPE, insulating and testing tools and materials, and decision-making
processes.
Restricted approach An approach limit at a distance from an exposed live part within which
boundary there is an increased risk of shock due to an electric arc combined with
inadvertent movement for personnel working near the live part. Entry
into this boundary is limited to qualified employees using the appropriate
PPE.
Special operation Locations (e.g., hazardous (classified), electrolytic cells, batteries, and
areas battery rooms with a stored capacity of > 1kWh or floating storage
between 115 and 650 volts, use of lasers, or power electronic
equipment such as electric arc welding or RF transmitters) that require
additional control measures to reduce the hazards associated with
performing work in those locations.
Thermal imaging A solution for everyday or planned maintenance in which a competent
person can scan an electrical installation looking for hot spots or areas
of potential danger.
Third-party Includes any individual that is performing work at a Carrier facility that is
not a contractor
Undervoltage Task or activity executed within close exposure to live electrical parts.
electrical work Close exposure to live electrical parts is to be determined by local
(powered equipment) regulations (e.g., <15cm).
4.0 ROLES AND RESPONSIBILITIES
VP of EHS • Responsible for Carrier’s overall EHS Electrical Safety program
• Approves deviation requests from this standard
Region/Business • Support the implementation of this standard across Carrier
Unit and WHQ EHS • Direct technical resources where required to ensure an effective
Leaders electrical safety program
Operations and • Support implementation of this standard within BU/region
Service Leaders/ • Direct technical resources where required
Regional EHS
• Periodically validate that an Electrical Safety program has been
implemented and is effective (through inspection, audit, program
evaluation, program review, metrics, etc.).
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Senior Operation • Accountable for implementing this standard within the operation
Managers • Hold managers accountable for implementing an effective Electrical
(Service/Operations Safety program that complies with Carrier and regulatory
Plant Manager) requirements
• Ensure employees/contractors who work with electricity are licensed,
trained, or certified and that electrical safety is included within
employee and contractor training plans
Supervisor • Implement the Electrical Safety program within the branch/area
(Service /Plant • Hold employees accountable for completing pre-shift tool and PPE
Operations) inspections, reporting damaged tools and PPE, and working with
electricity per this standard
• Ensure employees/contractors who work with electricity are licensed,
trained, or certified and that electrical safety is included within
employee and contractor training plans
• Ensure Stop Work following the identification of a Safety
Commitment violation or a high-risk hazard
Employees and • Complete pre-shift tool and PPE inspections, report damaged tools
contractors and PPE, and work with electricity per Carrier program requirements.
• Ensure that electrical licenses, training, or certification are up-to-date
• Attend electrical safety training as required by training plans
• Stop Work following the identification of a Safety Commitment
violation or a high-risk hazard
5.0 PROCEDURE
5.1 Electrical Safety Program
5.1.1 Each operation that has electrical safety hazards, where employees
and contractors work on or near electrical components operating
above 50 volts, must have a written Electrical Safety Program in
place that includes, at a minimum:
• Risk assessment
• Control measures (e.g., electrical tools, electrical PPE, electrical
test meters, rules, etc.)
• Legally required records (e.g., wiring diagrams, arc-flash studies)
• Audit and inspection
• Training and communication
5.2 Hazard Identification & Risk Assessment
5.2.1 Each operation must:
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a. Identify all electrical safety hazards related to the tasks and
activities performed at Carrier and customer locations where voltages
exceed 50 volts (e.g., product testing, plant maintenance and TPM,
field service maintenance and repair, field projects, R&D, etc.).
b. Conduct a documented assessment of all risks related to electrical
work, considering the following:
• Maintenance and TPM performed at Carrier locations
• Installation, commissioning, service, maintenance, and
repair completed at Customer locations
• Technical field support for installed Carrier products.
• Fixed electrical installations at Carrier locations
• Earthing of equipment (machines, metallic structures, etc)
• Any work on high-voltage equipment.
5.2.2 Carrier locations with electrical hazards must document risk
assessments on the hazard inventory as stated within H&S Risk
Assessment Standard
5.2.3 Carrier field service or projects where electrical hazards are present
must document risk assessment within pre-task risk assessment or
project risk assessment as stated in H&S Risk Assessment Standard.
5.3 Control Measures
5.3.1 Following the risk assessment, control measures must be identified
based on the hierarchy of controls; Mistake Proof-Level 1
(MPL1)/elimination must be prioritized when implementing control
measures.
ENGINEERED CONTROLS
5.3.2 For Carrier operations that undertake finished goods electrical
testing/run testing (e.g., smaller units tested on the line) within the
manufacturing lines above 50 volts, the following control measures
must be implemented:
a. MPL1/engineering solutions are to be prioritized for
connecting the unit to be tested to electrical energy (e.g.,
single electrical connection for 3-phase electrical supply).
b. 360-degree protection installed around the unit under
electrical test to ensure non-authorized persons outside the
perimeter cannot reach in and physically contact energized
components during testing. 360’ protection can include:
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• Fixed guards with interlocked gates.
• Light curtains, area scanners, pressure mats
Note: redundant control is not required; a single safeguard that
gives complete protection for the unit being tested within the
manufacturing line is required.
5.3.3 For Carrier operations that undertake finished goods electrical
testing/run testing outside of manufacturing lines (e.g., typically larger
units tested outside the line, centrifugal chillers, rental units at depots,
etc) above 50 volts, the following control measures must be
implemented:
• MPL1/engineering solutions are to be prioritized for connecting
the unit to be tested to electrical energy (e.g., a single electrical
connection for a 3-phase electrical supply).
• 360-degree protection or a controlled exclusion zone around the
unit, ensuring nonauthorized persons are not exposed to electrical
hazards or cannot physically contact energized components during
testing. 360’ protection or a controlled exclusion zone can include:
• Fixed guards with interlocked gates
• Light curtains, area scanners, pressure mats, or
• An exclusion zone requires a portable barrier and electrical
hazard signage that is operated under the control of an
authorized person (e.g., open panels connected to the electrical
energy supply).
5.3.4 Finished goods electrical testing/run testing programs to include:
a. Categories of guarding to be installed as per the Machine
Safeguarding standard.
b. Standard work instructions, available at the point of operation, for
connecting electrical energy to the unit, including a single connection
or connection for each phase (e.g., ensuring connections are attached
and removed in a zero-energy state).
5.3.5 All metal storage cabinets, cages, etc., used to store flammable
chemicals or compressed gases must be grounded per regulations.
5.3.6 Carrier operations must ensure that all electrical isolation points
(e.g., panels, sub-panels, spurs) are readily accessible for the
electrical equipment they control and have proper electrical isolation
switches installed (e.g., not isolating from emergency stop buttons,
etc.).
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5.3.7 Carrier operations must ensure that obsolete electrical energy
sources (e.g., spurs or sub-panels) are immediately isolated using
LOTO and removed back to the main electrical panel.
5.3.8 Extension cords must not be used as a replacement for permanent
wiring.
5.3.9 Installed units at Carrier locations or customer sites must have
protective covers for the main incoming electrical supply as per OEM
or local regulations.
ADMINISTRATIVE CONTROLS
5.3.10 Each operation must document and communicate standard
requirements for employees and contractors working with or around
electricity.
a. For Carrier locations and where required by local regulations, the
following control measures must be up to date and documented:
• Fixed electrical inspections of the electrical installation (e.g.,
building or site).
• Electrical wiring diagrams for the electrical installation (e.g., a
one-line diagram of the electrical system).
• Labelling of panels and circuit breakers.
• Arc-flash study for the electrical installation.
• Thermal imaging study or inspection for the electrical installation.
Note: The above actions must be completed by authorized and
competent persons per local regulations (e.g., internal Carrier
employees or third-party specialists).
b. 10mA Ground Fault Circuit Interrupters (GFCIs) must be used on
all portable tools and portable electrical devices, including those used:
• At customer locations for installation, service, and maintenance
tasks.
• At Carrier locations where repairs, maintenance, or construction
activities are performed.
• At any other location where cords, plugs, or receptacles may be
damaged or exposed to damp/wet conditions.
c. The maximum allowable distance that a GFCI can be located from
a portable tool is 75 meters.
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d. Portable GFCIs must be connected to the electrical circuit at the point
of connection to the receptacle and not connected to the load side of
an extension cord.
e. Full electrical PPE must be used when performing live electrical
diagnostic testing, troubleshooting, or fault finding (e.g.,
measuring voltages, amps) above 50V (refer to the PPE section).
f. For Carrier locations and customer sites where electrical energy
exists within a system, live part replacement must never occur (e.g.,
live electrical part replacement, mechanical parts connected to
electrical energy, etc.).
g. Electrical supply and connection to running units at customer
locations or units in run testing at Carrier locations must never be
unplugged/plugged when the electrical energy is live.
h. For equipment under service at customer locations the nominal
nameplate voltages must be read by employees and contractors to
verify that voltage are NOT above their limit (e.g., training,
certification, competency etc).
i. When performing service or maintenance on units with inverter
technology, employees and contractors must read the nominal
nameplate and labels on the unit to ensure they are aware of
transformed voltages (e.g., 415V AC can be transformed to >800V
DC).
j. Electrical insulated tools and PPE must be rated higher than the
transformed electrical voltage.
k. Flexible cords must be connected to devices and fittings in a manner
that prevents excess strain from being directly transmitted to joints or
terminal screws (e.g., pendant drops taking the weight of electrical
units, panels, etc).
l. Before touching any metallic surface or object, a non-contact
voltage tester must be used to verify grounding and zero energy
state (non-contact voltage tester must be used on a known electrical
source before use).
m. Before performing any live testing, fault finding, or zero energy
confirmation employees and contractors must remove all conductive
articles such as fall protection, keys, tools, and jewelry.
n. Verify electric test meters (e.g., non-contact testers, multimeters, etc)
are operating correctly by testing them on a known energy source
before use.
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o. Electrical run testing carried out at Carrier locations must be
performed with electrical measuring equipment that is product
certified (e.g., not internally fabricated or constructed) and
maintained as stated by OEM (e.g., inspection, maintenance,
calibration).
PERSONAL PROTECTIVE EQUIPMENT (PPE) & WORK EQUIPMENT
5.3.11 Minimum requirements for Personal Protective Equipment that must
be implemented at all Carrier operations when working with live voltages
greater than 50V (e.g., plant maintenance, R&D, field service
technicians):
Carrier Electrical PPE Electrical PPE, Maintenance,
(minimum requirement) Inspection, Testing Requirements
• Safety glasses or face shield • All electrically insulated safety shoes,
rubber matting, and insulated gloves must
• Electrically insulated gloves (appropriate to
be inspected per the OEM/regulation.
the AC/DC Voltage, e.g., Class 00, 0, 1, etc.)
• Continued use of electrical PPE must not
• Electrically insulated safety shoes or 1000V
occur past OEM/Regulations (e.g., 3-year
rubber matting (e.g., for standing work)
lifespan, 5-year life span, etc).
• 1000V rubber matting (e.g., for non-standard
• Users of electrical PPE must perform a pre-
activities such as electrical testing in a
use visual inspection.
kneeling position).
• Users of electrical insulated gloves must
• Electrical safety helmet, flammable resistant
PPE (to be used as required by the local perform a pre-use inflation test inspection.
regulation or risk assessment)
• The operation must choose electrical PPE based on the electrical voltages employees are
exposed to and the regulatory product safety standards for the country of use.
• Once an electrical ZERO energy state has been confirmed, safety glasses, electrically insulated
gloves, and 1000V rubber matting may be removed based on risk assessment.
5.3.12 Minimum requirements for electrical test meters and equipment that
must be implemented at all Carrier operations (e.g., plant maintenance,
R&D, field service technicians):
Carrier Electrical Testing Equipment Maintenance, Inspections,
(Minimum requirement) Calibration Requirements
• Electrical test meters and accessories (e.g., • All electrical test equipment must be
probes) must be rated at a minimum of inspected, tested, and calibrated, as stated by
Category 3 at 600 volts, including: the OEM/Regulation.
− Multi-meters • Users of electrical test equipment must ensure
− Clamp meters that a visual pre-use inspection takes place.
− Voltage meters
− Non-contact voltage testers
− Non-contact voltage tester must have a
minimum sensitivity range of 50-1000V.
• Test probes must be insulated or retractable.
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5.3.13 Minimum requirements for electrical hand tools that must be
implemented at all Carrier operations (e.g., plant maintenance, R&D,
field service technicians):
Carrier Electrical Hand Tools Maintenance, Inspections,
(Minimum requirement) Calibration Requirements
• Electrically insulated hand tools must be • Users of electrical hand tools must ensure
rated at 1000V (e.g., screwdrivers, pliers) that a visual pre-use inspection takes place.
• Non-conductive ladders to be used when
working around live electricity
• Ground Fault Circuit Interrupter (GFCI) / • Formal inspection, as required by OEM, is
Residual Current Device (RCD) must be required to ensure that trip times meet the
rated at 10mA GFCI/RCD's technical specifications.
• Users of GFCIs/RCDs must ensure that a
visual pre-use inspection takes place and that
a pre-use function test is utilized (e.g., self-
test button)
• Power tools and extension cords • Users of power tools and extension cords
must ensure that a visual pre-use inspection
takes place
• Formal documented inspection to take place
when required by local regulation.
5.4 Management of Change (MOC)
5.4.1 Any transformation plans that may introduce Electrical Safety Hazards,
including new machines, facility re-design or layout modifications, or
new products, require a Management of Change (MOC) assessment
and review. Examples include:
a. Newly manufactured products with significantly different electrical
controls, voltages, etc.
b. New machines or production equipment that are electrically powered.
5.5 Inspections and Audits
5.5.1 Electrical safety must be included in the operations inspection and
audit program.
a. Electrical safety trending data must be considered within annual
program evaluations and improvement planning actions.
b. Electrical safety inspection program must ensure that unsafe acts and
unsafe conditions are properly recorded.
c. Inspection records must be maintained.
5.5.2 For any electrical shock incident, Line Management must perform an
inspection within 30 days of the employee resuming normal work
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duties. Inspection is to focus on safe electrical work practices and
must be documented.
5.5.3 Any preventative maintenance or TPM must be documented and
performed per the manufacturer’s recommendations.
6.0 TRAINING
6.1 Minimum electrical safety training requirements for Carrier employees:
Employee Group Minimum Training Content Frequency
General Awareness
Safety Commitments • Initial (Orientation)
(Low risk employees, e.g., office,
Carrier Electrical Safety Standard • Annual (Refresher)
general operators)
Exposed Employees Safety Commitments
(High risk employees, e.g., operators Carrier Electrical Safety Standard • Initial (Orientation)
who perform electrical tasks, Electrical Hazards and Control • Annual (Refresher)
maintenance, field technicians) Measures applicable to tasks
6.2 Employees must have a current license, training, or certification according to
OEM and local regulations.
6.3 Refresher training must be completed following any electrical related incident
for Level 1, Level 2, or Level 3 HIPO (for event classification, refer to the EHS
Incident Management standard).
6.3.1 Refresher training must address the root cause of the incident.
6.3 Requirements for Contractor training see Contractor Management Standard.
7.0 REFERENCES
• Carrier EHS Policy (CPM 2), located in the ePolicy site
• Carrier Corporate Governance and Records (CPM 14), located on ePolicy site
• Carrier EHSOS Manual (link)
• Carrier H&S Risk Assessment Standard (link)
• Carrier Control of Hazardous Energy Standard (link)
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8.0 COMPLIANCE REQUIREMENTS
8.1 This standard is effective upon issuance. Full compliance with new requirements is
expected within 6 months from issuance; implementation milestones are below.
Implementation Date Topic Action / Requirement from Standard
Conduct a documented gap assessment of
the revised standard against the local/site
30 September 2024 Gap Assessment
program and prepare an implementation plan
to address the new requirements.
100% implementation of Carrier requirements
28 February 2025 Full Implementation
and all gaps closed.
8.2 The deviation process must be followed (work instruction) for deadline
extensions or exemption requests.
8.3 New acquisitions will implement this standard per the integration plan/schedule.
9.0 APPENDICES
• Appendix A: Business Unit or Region-Specific Requirements
10.0 REVISION HISTORY
10.1 This document will be reviewed in 3 years and updated if needed. Incidents,
identified gaps, employee feedback, and changes may anticipate the review.
Rev. # Revision Date Effective Date Description of Change Created by / Changed by
1 June 5, 2024 June 5, 2024 New document. Supersedes the Tim Evans
legacy UTC SP 18
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APPENDIX A – BUSINESS UNIT/REGIONAL SPECIFIC
REQUIREMENTS
No specific requirements are identified in Rev 1 of this Standard
for Business Units or Regions.
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Control of Hazardous Energy
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1.0 PURPOSE
Establish Carrier’s requirements for identifying, controlling, and mitigating risks
associated with the Control of Hazardous Energy.
This standard supports the implementation of Lead with Safety – Control of Hazardous
Energy.
2.0 SCOPE
2.1 This standard applies to:
Plants Logistics / R&D Field Service / Offices /
(manufacturing) Warehouses Projects* Other
✓ ✓ ✓ ✓ ✓
* Note - Field Service/Projects include Carrier Rental and other service field operations
• Subsidiaries and joint ventures where Carrier has operational control or its
interest is 50% or more.
2.2 If there is a conflict with country/local regulations, Carrier standards, or customer
requirements, the most protective/stringent requirement(s) must be applied.
2.3 The Carrier Vice President of EHS must approve any deviation from
requirement(s) in this standard. Any deviation request must be documented, and
an action plan with alternative measures (work instruction) must be included.
3.0 DEFINITIONS
Administrative lock or Locks that are used to protect equipment that are not in the process
transition lock. of undergoing service, maintenance, or repair. Administrative locks
are immediately identifiable from personal locks and must be
accompanied by a unique administrative or transition tag.
Affected employee A person whose job requires the operation or use of machinery,
equipment, or process (including piping) on which servicing,
maintenance, or repair is being performed under lockout/tagout or an
employee in the area where servicing, maintenance, or repair is
being performed.
Authorized employee A person who locks out or tags out machines, equipment, or
processes (including piping) to perform servicing, maintenance, or
repair on that machine, equipment, or process. Authorized persons
have the skills, knowledge, and experience to perform effective lock-
out tag-out.
Bleed off Bleed off means dissipating stored energy or relieving pressure from
a vessel or system.
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Capable of being An energy-isolating device that can be locked out if it has a hasp or
locked out other means of attachment to which, or through which, a lock can be
affixed or has a locking mechanism built into it.
Energized Something is energized when connected to an energy source or
contains residual or stored energy.
Energy isolation A process that physically prevents the transmission or release of a
hazardous energy source, such as chemical, thermal, electrical,
pneumatic, gravity, hydraulic, or mechanical.
Energy isolating A mechanical device that physically prevents the transmission or
device release of energy (e.g., manually operated electrical circuit breakers,
disconnect switches, a manually operated switch by which the
conductors of a circuit can be disconnected from all ungrounded
supply conductors, a line valve, a block, or any similar device used to
block or isolate energy).
Push buttons, selector switches, and other control circuit-type
devices are not energy-isolating.
Group Lockout It is a method for providing employees with a high level of safety
Tagout when multiple authorized employees need to work together to
perform service, maintenance, or repair on machines, equipment, or
processes. Each authorized person must apply their own individually
controlled lock and tag (e.g., a hasp or similar device that can
accommodate more than one lock and tag is to be used).
Hasp Hasps allow multiple authorized employees to each apply their own
lock and tag to prevent accidentally energizing equipment during
service, maintenance, or repair. The hasp is applied to a lockout
point, and then one or more locks and tags can be inserted into the
hasp shackle holes.
Hazardous energy Any source of electrical, mechanical, hydraulic, pneumatic, chemical,
source thermal, and gravity energy (e.g., capacitors or other energy that has
the potential to cause injury associated with the machine, equipment,
or process piping systems undergoing maintenance or service)
Linebreaking The intentional opening of a pipe, line, or duct that is or has been
carrying flammable, corrosive, or toxic material, an inert gas, or any
fluid at a volume, pressure, or temperature capable of causing injury.
Lockout The placement of a lockout device on an energy-isolating point
ensures that the energy-isolating device and the controlled
equipment cannot be operated until the lockout device is removed.
Lockout device A device that utilizes a positive means with a lock and key to hold an
energy-isolating device in a safe position and prevent the energizing
of machines, equipment, or processes (e.g., operations to use
durable, standardized, and identifiable lockout devices).
Lockout Tagout Applying lock and tags to eliminate and/or control hazardous energy
per an established procedure, ensuring that the energy-isolating
device must not be tampered with until the lock and tag have been
removed.
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Machine/equipment- A written procedure or work instruction for specific hazardous energy
specific energy sources (e.g., machines, equipment, or processes) that has been
control procedures or developed, documented, and used to control hazardous energy
work instructions exposures.
Personnel Carrier employees, contractors, and third parties
Servicing and/or Activities include constructing, installing, setting up, adjusting,
maintenance inspecting, modifying, servicing, and maintaining machines,
equipment, or processes. They can also include lubrication, cleaning,
unjamming, adjusting, or tool changes, where the employee may be
exposed to unexpected energization or startup of the equipment or
release of hazardous energy.
Setting Up Any work performed to prepare a machine, equipment, or process to
perform its normal production operation.
Tagout device A prominent warning device, such as a tag and a means of
attachment that can be securely fastened to an energy-isolating
device per an established procedure, indicates that the energy-
isolating device and the equipment being controlled may not be
operated until the tagout device is removed.
TPM Total Preventative Maintenance
Zero energy state The elimination and/or control of hazardous energy so that it no
longer represents a hazard to employees.
4.0 ROLES AND RESPONSIBILITIES
VP of EH&S • Responsible for Carrier’s overall EHS Control of Hazardous
Energy program
• Approves deviation requests from this standard
Business Unit and • Support the implementation of this standard across Carrier
WHQ EH&S Leaders • Direct technical resources where required to ensure an
effective Control of Hazardous Energy program
Operations and • Support implementation across the BU/region
Service Leaders/ • Direct technical resources where required to ensure an
Regional EH&S effective Control of Hazardous Energy program
• Periodically validate the effective implementation of the Control
of Hazardous Energy program (through inspection, audit,
program evaluation, program review, metrics, etc.)
Senior Operation • Accountable for implementing this standard within the
Managers operation
(Service/Operations • Hold managers and supervisors accountable for implementing
Plant Manager) an effective Control of Hazardous Energy program that
complies with Carrier and regulatory requirements
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• Ensure Control of Hazardous Energy is included within
employee and contractor training plans
• Accountable for implementing an effective MOC program
Supervisor • Implement the Control of Hazardous Energy program within
(Service /Plant the service branch or production area
Operations) • Hold employees accountable for completing pre-shift tool and
PPE inspections, reporting damaged tools and PPE, and
controlling hazardous energy per this standard
• Ensure Control of Hazardous Energy is included within
employee and contractor training plans
• Support the management of change MOC program
• Stop Work following the identification of a Safety Commitment
violation or a high risk hazard
Employees and • Complete pre-shift tool and PPE inspections, report damaged
contractors tools and PPE, and control hazardous energy per this standard
• Attend Control of Hazardous Energy training as required by
training plans
• Stop Work following the identification of a Safety Commitment
violation or a high-risk hazard
5.0 PROCEDURE
5.1 Hazardous Energy Safety Program
5.1.1 Each operation where employees work on or near hazardous energy
sources must have a written Control of Hazardous Energy Program
in place that includes, at a minimum:
• Risk assessments
• Control measures (e.g., electrical tools, pressure gauges,
electrical PPE, electrical test meters, etc.)
• Standard work instructions
• Audit and inspection
• Training and communication
5.2 Hazard Identification & Risk Assessment
5.2.1 Each operation must:
a. Identify all Hazardous Energy sources related to installations,
tasks, and activities performed at Carrier and customer locations (e.g.,
electrical, mechanical, pneumatic, hydraulic, and thermal energy
sources).
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b. Conduct a documented assessment of all risks related to working
with hazardous energy, considering the following:
• Maintenance and TPM performed at Carrier locations
• Installation, commissioning, service, maintenance, and
repair completed at Customer locations
• Technical field support for installed Carrier products
• Fixed installations at Carrier locations
• Machines with multiple hazardous energy sources
5.2.2 Carrier locations with hazardous energy sources must document risk
assessments on the Hazard Inventory as stated within H&S Risk
Assessment Standard.
5.2.3 Carrier field service or projects where hazardous energy sources are
present must document risk assessment within the pre-task risk
assessment or project risk assessment, as stated in the H&S Risk
Assessment Standard.
5.3 Control Measures
5.3.1 Following the risk assessment, control measures must be identified
based on the hierarchy of controls; Mistake Proof-Level 1 (MPL1)
/elimination must be prioritized when implementing control measures.
ENGINEERED CONTROLS
5.3.2 Machine, equipment, and process control for hazardous energy must
be managed following the below requirements.
Isolation points
a. Machines and equipment at Carrier locations must have isolation
points installed in easily accessible places that allow employees and
contractors to control all hazardous energy sources effectively,
including applying lockout tagout.
• Machine, equipment, and process isolation points must be labeled
and determined within standard work instructions.
b. Equipment at customer locations should have isolation points installed
in easily accessible places, where possible, that allow employees and
contractors to effectively control all hazardous energy sources,
including the provision of lockout tagout.
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• Carrier-manufactured equipment (or non-Carrier) manuals must
state isolation points for units; where employees and contractors
cannot determine safe isolation points, then employees and
contractors must stop work and seek further guidance.
5.3.3 Isolation points must be installed (e.g., electrical isolation switches,
circuit breakers, valves, etc.) in a way that gives complete protection
from failure or exposure to hazardous energy.
a. Hazardous energies must only be isolated using points professionally
designed and constructed for safe isolation.
• The use of general emergency stop buttons for isolation is
prohibited unless the stop button is a lock-and-key type and
approved by the manufacturer as an isolation point.
b. For customer locations, safe isolation points must be identified when
completing the pre-task risk assessment (e.g., locally at the unit or
back to the circuit breakers in the main panel or plant room).
ADMINISTRATIVE CONTROLS
5.3.4 Each operation must document and communicate standard
requirements for employees and contractors who are required to
control hazardous energy, including:
a. Control of hazardous energy machine, equipment, or process work
instructions must be documented and readily available (e.g., posted
to the machine) for the following criteria:
• Potential for stored or residual energy to exist or re-accumulate
after the machine, equipment, or process is shut down.
• Where more than one energy source exists that cannot be readily
identified and isolated.
• Where more than one energy source exists, and the isolation and
locking out of one energy source will not completely deactivate
and de-energize the machinery, equipment, or process.
• Machinery, equipment, or process tasks where lock out tag out
cannot be applied due to the design of the machine, required
movement of the machine, or any other task stated within the
manufacturer's manual.
o Tasks may include installing, setting up, adjusting, inspecting,
modifying, servicing, maintaining, machine slow mode, or tool
change.
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• Any machine, equipment, or process requiring more than one
lockout device to achieve a zero-energy state.
• Servicing, maintenance, and repair of machines, equipment, or
processes that create hazards for other employees or contractors
affected by the operation.
o Any machine, equipment, or process that requires isolation of
hazardous material, including high pressure, high temperature,
and other piping that could reasonably be expected to introduce a
hazard when utilizing line breaking (e.g., blank, blind, or double
block and bleed off techniques).
b. At the time of lockout tagout, the operation must ensure that written
procedures include requirements for authorized employees to:
• Notify affected employees in the work area or those working on
the machines, equipment, or processes that lockout tagout and/or
line-breaking activities will occur.
• Prepare for shutdown of the machine, equipment, or process.
• Shut down machine, equipment, or process and isolate all
hazardous energy source(s).
• Apply lockout tagout devices using equipment-specific and line-
breaking procedures, including group lockout tagout and transition
procedures in case of shift or personnel change.
• As necessary, release and/or secure (block) any stored
(potential) energy in capacitors, springs, presses, or elevators per
manufacturers' requirements.
• Perform verification testing and ensure that all stored hazardous
energy sources have been released and that machines,
equipment, and process piping are in a zero-energy state.
• Complete required service, maintenance, and set-up activities.
• Replace any removed guards and ensure the machine, equipment,
or process is ready to restore energy.
• Remove the lockout tagout devices from the affected machines,
equipment, or process.
• Verify that the machine, equipment, or process is working properly
before returning it to normal operation.
• Notify affected employees that the machine or equipment has
been returned to normal operation.
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c. Each operating unit must develop written procedures to remove
locks when the authorized employee that placed them is unavailable.
• This may include using a Lock Removal Permit (Appendix B) or an
equivalent form/system containing the same requirements.
d. Ensure that energy isolation devices are available and locks and
tags are used in conjunction with energy isolation devices during all
hazardous energy control activities.
e. Each lock or lock set used during lockout tasks must have only one
key; keys are personal and must never be shared.
• The use of combination locks or locks with master keys during
lockout tasks is prohibited.
f. Hasp must be used where group lockout takes place, ensuring that
each technician and/or contractor can isolate the energy source using
their personal lock and tag.
• Where group lockout occurs, everyone must isolate the energy
source from the same isolation point.
o Group lockout is prohibited where different isolation points are
used for the same system or energy source.
• When working on customer sites where the customer isolates the
energy source and verifies zero energy, the technician or
contractor must always apply their personal lock and tag and re-
verify the zero-energy state.
g. Written programs must include shift or personnel changes,
including lock transfer and verification of zero energy.
h. Administrative locks and tags can be used where regulations permit
equipment not undergoing service, maintenance, or repair (e.g.,
permanent lockout of a machine, electrical sub-panel, or between
shifts).
• Work methods and use of administrative locks and tags must be
clearly defined within procedures and work instructions.
• Administrative locks and tags must be immediately identifiable
from personal locks and tags (e.g., different colors).
• Administrative locks and tags and personal locks and tags must
not be interchangeable.
i. For instances where an approved electrical isolation point has not
been installed (e.g., old installations at customer locations), then the
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circuit breaker must be switched off, and additional control measures
implemented, which may include:
• An alternative method that has been formally approved by the
Line Manager or EHS department or
• Fuse removal, where the employee or contractor completely
controls the fuses (e.g., locked in a toolbox).
j. Procedures and work instructions must determine an approved work
method to verify a zero-energy state for machines, equipment, and
processes being isolated, for example:
• Electrical test meters are to be used to verify zero electrical
energy (refer to the Electrical Safety Standard for electrical test
equipment).
• Pressure gauges are to be used to verify zero refrigerant or
compressed gas energy.
PERSONAL PROTECTIVE EQUIPMENT (PPE) & WORK EQUIPMENT
5.3.5 When working with electrical hazardous energy, the site must refer to
Carrier’s Electrical Safety Standard for minimum requirements for PPE,
tools, and work equipment.
a. Electrical lockout equipment must include, at a minimum:
• Padlock (2 minimum)
• Lockout tags (2 minimum)
• Multi hasp/group lockout (2 minimum)
• Any other lockout equipment identified within risk assessments
applicable for the machine, equipment, or unit (e.g., circuit breaker
lockout pack, universal, pin-in, pin-out, etc.).
5.3.6 When working with hydraulic, compressed gas (refrigerant, etc.), or
compressed air energies, the following lockout equipment must include
at a minimum:
• Padlock (2 minimum)
• Lockout tags (2 minimum)
• Multi hasp/group lockout (2 minimum)
• Appropriate lockout equipment for valves (e.g., ball valve lockout,
gate valve lockout, etc).
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• Any other lockout equipment identified within risk assessments
applicable to the machine, equipment, or unit.
5.4 Management of Change (MOC)
5.4.1 Any transformation plans that may introduce hazardous energy
sources, including new machines, facility re-design or layout
modifications, or new products, require a Management of Change
(MOC) assessment and review. Examples include:
a. Newly manufactured products with significantly different hazardous
energy sources, etc.
b. New machines or production equipment that introduce hazardous
energy sources.
5.5 Inspections and Audits
5.5.1 Control of hazardous energy must be included in the operations’
inspection and audit program.
a. Control of hazardous energy inspection program must ensure that
unsafe acts and unsafe conditions are properly recorded.
b. Trending data related to control of hazardous energy must be
gathered and considered as part of annual program evaluations and
improvement planning actions.
5.5.2 For any incident related to the control of hazardous energy, Line
Management must perform a documented inspection within 30 days of
the employee resuming normal work duties, focusing on safe work
practices for the control of hazardous energy.
6.0 TRAINING
6.1 Minimum control of hazardous energy training requirements for Carrier
employees.
Employee Group Minimum Training Content Frequency
General Awareness • Safety Commitments • Initial (Orientation)
(Affected employees, low risk • Carrier Control of Hazardous Energy • Annual (Refresher)
employees, e.g., office, Standard
general operators)
Exposed Employees • Safety Commitments • Initial (Orientation)
(Authorized employees, high • Carrier Control of Hazardous Energy • Annual (Refresher)
risk employees, e.g., operators Standard
who perform energy control • Hazardous energy and control measures
tasks, maintenance, field applicable to tasks
technicians)
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6.2 Employees must have a current license, training, or certification according to
OEM and local regulations
6.3 Refresher training must be completed following any hazardous energy control-
related incident for Level 1, Level 2, or Level 3 HIPO (for event classification,
refer to the EHS Incident Management Standard).
6.3.1 Refresher training must address the root cause of the incident.
6.3 Requirements for contractor training refer to Contractor Management Standard.
7.0 REFERENCES
• Carrier EH&S Policy (CPM 2), located in the ePolicy site
• Carrier Corporate Governance and Records (CPM 14), located on ePolicy site
• Carrier EHSOS Manual (link)
• Carrier H&S Risk Assessment Standard (link)
• Carrier Control of Electrical Safety Standard (link)
8.0 COMPLIANCE REQUIREMENTS
8.1 This standard is effective upon issuance. Full compliance with new requirements is
expected within 6 months from issuance; implementation milestones are below.
Implementation Date Topic Action / Requirement from Standard
30 September 2024 Gap Assessment Conduct a documented gap assessment of the
revised standard against the local/site program
and prepare an implementation plan to address
the new requirements.
28 February 2025 Full Implementation 100% implementation of Carrier requirements
and all gaps closed.
8.2 The deviation process must be followed (work instruction) for deadline
extensions or exemption requests.
8.3 New acquisitions will implement this standard per the integration plan/schedule.
9.0 APPENDICES
• Appendix A: Business Unit or Region-Specific Requirements
• Appendix B: Lock Removal Permit
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10.0 REVISION HISTORY
10.1 This document will be reviewed in 3 years and updated if needed. Incidents,
identified gaps, employee feedback, and changes may anticipate the review.
Rev. # Revision Date Effective Date Description of Change Created by / Changed by
1 June 5, 2024 Upon issue New document. Supersedes the Tim Evans
legacy UTC SP 13
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APPENDIX A – BUSINESS UNIT/REGIONAL SPECIFIC
REQUIREMENTS
No specific requirements are identified in Rev 1 of this Standard
for Business Units or Regions.
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APPENDIX B – LOCK REMOVAL PERMIT
LOCK REMOVAL PERMIT
Where hazard energy or system shutdown has been controlled by applying a lock, the person
removing the lock must fully complete this permit BEFORE the lock is removed.
Name of the person
Date and time of lock removal:
removing the lock:
The reason why the
lock must be
removed:
Location of lock that
must be removed:
No Question Yes No N/A
1. Attempts have been made to contact the person who applied the lock.
2. Line Manager or Supervisor has approved lock removal.
3. Removal of the lock will not create a hazardous energy hazard or risk.
Potential faulty components have been assessed; energy restoration will
4.
not occur where a hazard would be created.
Hazardous energy test equipment and PPE will be used according to
5.
Carrier and regulatory requirements.
If I cannot repair and return the unit to normal operation, I will apply locks
6.
and tags to ensure continued hazardous energy control.
I certify that I have completed lock removal, ensured that any isolated hazardous energies are
controlled, and will leave the unit, machine, or equipment operating normally or re-apply
locks and tags at the end of my task.
Name of Line Manager or Supervisor
who approved lock removal:
Date of approval:
Signature of the person who
removed the lock:
Date of removal:
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Powered Industrial Vehicles (PIV) Standard
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1.0 PURPOSE
Establish Carrier’s requirements for identifying, controlling, and mitigating risks
associated with Powered Industrial Vehicles (PIVs) operation.
This standard supports the implementation of Lead with Safety – Powered Industrial
Vehicles Safety Commitment.
2.0 SCOPE
2.1 This standard applies to:
Plants Logistics / R&D Field Service / Offices /
(manufacturing) Warehouses Projects* Other
✓ ✓ ✓ ✓ ✓
(where PIVs are used)
* Note - Field Service/Projects include Carrier Rental and other service field operations
• Subsidiaries and joint ventures where Carrier has operational control or its
interest is 50% or more.
2.2 If there is a conflict with country/local regulations, Carrier standards, or customer
requirements, the most protective/stringent requirement(s) must be applied.
2.3 The Carrier Vice President of EHS must approve any deviation from
requirement(s) in this standard. Any deviation request must be documented and
include an action plan with alternative measures (work instruction).
3.0 DEFINITIONS
Automated Guided Automated guided forklifts to handle repetitive warehouse material
Vehicles (AGVs) handling tasks.
Awareness barrier A barrier that alerts the PIV operator of the potential for danger or a need
for separation.
Danger zone Signs to ensure pedestrians stay at a safe distance from the forklift with
warnings the red zone warning light (e.g., halo lights).
The red zone or “halo” zone puts a bright red line on the floor to the sides
of the forklift's rear to show pedestrians where they are not allowed.
Dock lock A truck restraint system that prevents a truck from moving during loading
and unloading tasks.
Loading dock/bay An area of a building where trucks or goods vehicles load or unload.
Order picker A piece of equipment used to help operators pick and deliver materials
needed for filling out orders. They are designed to take the forklift operator
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up to the rack with or without a load and typically require them to wear a
harness and lanyard connected to an identified anchor point.
Original Equipment OEM typically refers to the manufacturer of the original equipment, that is,
Manufacturer (OEM) the parts that are then subsequently assembled and installed during the
construction of a product.
Pedestrian/PIV A physical barrier to stop pedestrians and PIVs from interacting (e.g., fixed
separation guardrail, concrete barrier).
Pedestrian warnings Safety lights (e.g., LED blue spotlight) to help warn pedestrians of
/ visual indicators oncoming PIV traffic, critical where noise may prevent pedestrian
awareness of PIV traffic (e.g., red/blue spot safety lights).
Positive driver An interlock/switch that prevents the operation of the PIV unless the
contact safety switch operator is in the designated position; it’s usually used as a form of fail-
(or dead man switch) safe to stop a PIV with no operator from potentially dangerous action. The
travel/drive circuit is interrupted or automatically returned to a neutral
position when the operator releases the switch.
Powered Industrial A mobile, power-driven truck designed to be controlled by a riding or
Vehicles (PIVs) walking operator and used to carry, push, pull, lift, or stack material (not
including trucks intended primarily for earth moving).
It includes forklifts, forktrucks, powered pallet jacks, tractors, platform lift
trucks, tuggers, and any other specialized industrial trucks manned by an
operator and other people on board associated with vehicle function and
powered by electric motors or internal combustion engines.
4.0 ROLES AND RESPONSIBILITIES
VP of EH&S • Responsible for Carrier’s overall EHS PIV program
• Approves deviation requests from this standard
Business Unit and • Support the implementation of this standard across Carrier
WHQ EH&S Leaders • Direct technical resources where required to ensure an effective
PIV program
Operations and • Support implementation of the PIV program within BU/region
Service Leaders/ • Direct technical resources where required to ensure an effective
Regional EH&S PIV program
• Periodically validate that a PIV program has been implemented
and is effective (through inspection, audit, program evaluation,
program review, metrics, etc.).
Senior Operation • Accountable for implementing this standard within the operation
Managers • Hold managers accountable for implementing an effective PIV
(Service/Operations program that complies with Carrier and regulatory requirements
Plant Manager) • Ensure PIV operators are licensed and PIV is included within
employee and contractor training plans
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Supervisor • Implement the PIV program within the branch or production area
(Service /Plant • Hold employees accountable for completing pre-shift inspections,
Operations) reporting any PIV damage, and operating PIVs per this standard
• Verify that PIV operators are licensed and PIV is included in
employee and contractor training plans
• Ensure Stop Work following the identification of a Safety
Commitment violation or a high-risk hazard
Employees and • Complete pre-shift inspections, report any PIV damage and
contractors (PIV operate PIVs as per Carrier program requirements
operators) • Ensure the PIV license has not expired
• Attend PIV training as required by training plans
• Stop Work following the identification of a Safety Commitment
violation or a high-risk hazard
5.0 PROCEDURE
5.1 Powered Industrial Vehicles (PIV) Program
5.1.1 Each operation (all sites with PIVs) must have a written PIV Program
in place that includes, at a minimum:
• Identification of PIVs
• Risk assessments
• Utilization study
• Control measures (e.g., seat belts, danger zone lights, pedestrian
warning lights, speed limitation, pre-shift inspections, etc.)
• Audit and Inspection
• Training and communication
5.2 Hazard Identification & Risk Assessment
5.2.1 Each operation (all sites with PIVs) must:
a. Identify all PIV hazards related to the tasks and activities performed
at the location, such as production, logistics, truck loading and
unloading, service/rentals, field warehouses, field projects, etc.
b. Conduct a documented assessment of all risks related to PIV,
considering the following:
• Types of PIV models used
• Site map showing where PIVs are used, including layout
identifying interface points for PIVs and pedestrians and for
PIV collision points
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• Tasks and activities where PIVs are used
• Engineered control measures implemented on PIVs (e.g.,
pedestrian or danger zone warning lights, speed controls)
• Administrative control measures implemented within the
PIV program (e.g., pre-shift inspections, work instructions)
• PPE control measures implemented within the PIV
program (e.g., high visibility jackets, safety shoes)
• Hazardous environments, including uneven surfaces,
ramps, loading and unloading docks
• Hazardous locations (e.g., PIV charge stations)
• Servicing, formal inspection, TPM maintenance of PIVs
5.2.2 Carrier locations with PIVs must document risk assessment on the
Hazard Inventory as stated within H&S Risk Assessment Standard.
5.2.3 Carrier field service or projects where PIVs are used must document
risk assessment within pre-task risk assessment or project risk
assessment as stated in H&S Risk Assessment Standard.
5.2.4 Each plant must have a documented PIV utilization study to evaluate
PIV use and reduce the number where possible (refer to Appendix B).
a. The study must be updated every 36 months (3 years) or where
significant changes have occurred.
5.3 Control Measures
5.3.1 Following the risk assessment, control measures must be identified
based on the hierarchy of controls; Mistake Proof-Level 1
(MPL1)/elimination must be prioritized when implementing control
measures.
ENGINEERED CONTROLS
5.3.2 PIVs must meet all applicable design and construction requirements
and have product certification for their country of operation.
5.3.3 PIVs with a sit-down, non-elevating position must have a restraint
system (e.g., seatbelt) installed and used by operators.
a. Any PIV that is required to have a seatbelt but does not must be taken
out of service until retrofitted with an OEM-approved seat belt (or
acceptable equivalent).
b. All PIV seatbelts must be interlocked, preventing the engine from
starting until the seat belt is connected.
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c. Sit-down PIVs must have high-color seat belts or seatbelt sleeves
(e.g., orange, yellow) installed, ensuring visibility of seat belt use.
5.3.4 A restrain system (e.g., seatbelt) is not required for PIVs designed
where the operator stands during the task.
5.3.5 Any PIV with an elevated mechanism designed to raise the load above
the operator must be equipped with a protective overhead cage and
backrest guards to ensure objects cannot fall over the top of the
mast, landing on the PIV operator or to protect from PIV rollover.
a. In case of any forklift rollover or other significant accident (e.g., driving
off a dock loading bay, etc.), operators must remain seated in the PIV.
The overhead cage will protect them.
5.3.6 PIVs must have pedestrian warning/visual indicators for their
direction of travel (i.e., front and back), alerting pedestrians to
oncoming traffic (i.e., blue or red spot LED lights).
5.3.7 Forklifts must have danger zone warning lights installed, ensuring
pedestrians stay at a safe distance (i.e., red zone warning lights,
halos).
5.3.8 PIVs must have headlights installed where the PIV is used in areas of
poor lighting or external areas.
5.3.9 Forklifts must have horns and reversing audible devices that are
loud enough to be heard over ambient noise to warn other
vehicles/pedestrians.
a. PIVs require horns only when they are operated by a sit-down or
stand-on operator.
5.3.10 Forklifts and tuggers must have visual flashing beacons installed.
5.3.11 PIVs must have the manufacturer's rated capacity plate in good and
visible condition.
5.3.12 Diesel PIVs must not be continuously used inside warehouses and
areas where fumes cannot immediately dissipate (e.g., PIV can be
parked inside a facility but not constantly used).
5.3.13 PIV tires must be the correct type and selected for the environment
where they are used (internal/external tires must be fitted where
appropriate).
a. Using a PIV is prohibited once tires have reached the wear indicator.
5.3.14 PIVs used in manufacturing areas or areas where pedestrians are
present must have speed limited to 5mph/8kph (e.g., mechanical or
electronic limitation, depending on PIV age).
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a. Where it is identified that a PIV cannot have a speed limitation
installed, then the PIV must be replaced within 12 months.
5.3.15 Positive driver contact safety switches (dead man switch) must be
installed on standing PIVs (lift trucks); where the circuit is interrupted,
the PIV must go into a neutral position.
5.3.16 Order pickers must have safety switches (dead man switch) and
anchorage points installed per the OEM manual.
a. Working at height PPE (harness and lanyards) to be worn per the
OEM manual and local regulation.
5.3.17 Key ignition is not permitted for any new Carrier-owned or leased
PIVs. Approved methods for ignition include:
• Passcode ignition systems
• Operator card ignition systems
5.3.18 PIV attachments used for lifting equipment or materials must be:
a. Approved by the manufacturer and not internally fabricated.
b. Be inspected as required by the manufacturer or regulations (e.g., fork
attachments, barrel clamps, chains, slings, hooks)
5.3.19 PIV attachments used for lifting persons, such as lifting cages and
platforms, must not be used in any Carrier operation.
5.3.20 Any PIV fitted with an attachment must have the attachment added to
the ratting capacity plate (data plate), specifying the capacity of the PIV
when equipped with the attachment.
5.3.21 PIV/pedestrian separation controls must be put in place to ensure no
unintentional contact is possible, including:
a. Pedestrian aisles (3 feet/900 mm wide), allowing for two persons
walking alongside each other.
b. Fixed barrier or guarding systems in all areas where doorways or
walking routes open directly into designated PIV traffic routes (e.g.,
restrooms, break rooms, office doors).
c. Where feasible, isolation of forklifts from production areas and use of
other PIV devices designed for material handling are preferred (e.g.,
tuggers, carts)
d. Isolation of pedestrians that are picking/placing from moving PIVs.
• Forklifts, high bay pickers, reach trucks, and pedestrians must not
interact within warehouse high bay rack isles. A physical control
must be installed at the entrance of each aisle to prevent
interaction (e.g., barrier rail, chain)
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e. Implementation of controlled crosswalks for intersections with high
pedestrian and PIV traffic interactions, at a minimum:
• PIV stop signs
• Pedestrian warning signs
• Designated crossing areas
f. Doorways and openings that are identified as PIV traffic routes must
not be used by pedestrians
5.3.22 PIV/PIV separation controls must be put in place to ensure no
unintentional contact is possible, including:
a. Designated PIV traffic routes with 3 feet/900mm unobstructed
clearance back from each corner to ensure 180-degree visibility to
oncoming traffic or obstacles while turning a corner.
b. Where the control above is impossible, installation of appropriate
vision mirrors, traffic lights, warning lights, and barriers is mandatory.
5.3.23 Battery charge stations must be designed and constructed to ensure
that combustion and electrical hazards are adequately controlled,
including:
a. Battery charging to take place in a well-ventilated area where
smoking, naked flames, or other ignition sources (e.g., brazing,
welding) are prohibited.
b. The battery cover on the PIV is to be raised when charging to support
ventilation.
c. Charge station to be free from obstructions, allowing operators to
switch the charger off before the battery is connected or
disconnected.
d. Firefighting and first aid equipment installed as risk assessments and
regulations require.
5.3.24 LPG fuel stations must be designed and constructed to ensure that
combustion hazards are adequately controlled, including:
a. Fuel stations and cylinder storage cages must be well-ventilated,
outdoors, and grounded.
b. Cylinder fuel refilling or cylinder replacement must take place at a safe
distance from all ignition sources as required by local regulations or
Safety Data Sheets (SDS).
c. Firefighting and first aid equipment must be installed as risk
assessments and regulations require.
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5.3.25 Operations with dock loading bays must consider dock locks as the
primary control measure for securing trucks.
a. Where this is not possible, alternative control measures must be
implemented to reduce the risk associated with truck movement to the
lowest practical level.
5.3.26 Truck and trailer jack standards must always be used when trailers
are de-coupled from trucks and trailer loading is to take place.
a. Trailer jack stands must be subject to inspection and maintenance as
required by the manufacturer or by regulations.
ADMINISTRATIVE CONTROLS
5.3.27 Each operation must document and communicate standard work
instructions to PIV operators for specific PIV-related tasks, including:
a. Battery charge stations – electrical charging
b. LPG fuel stations – cylinder replacement stations
c. Dock loading bay – securing of trucks and trailers for loading/unloading
d. Infrequent high-risk tasks (e.g., TPM)
e. High-risk material movement (e.g., chemical tanks, large compressed
gas cylinders)
f. For one-off high-risk tasks where material is to be moved with a PIV -
complete Pre-Task Risk Assessment as stated within the Health &
Safety Risk Assessment Standard.
Note – Standard work instructions must be posted at the location for
battery charging stations, LPG fuel stations/cylinder replacement stations,
and dock loading bays.
5.3.28 Rules must be integrated into local PIV written programs, including:
a. Employees and contractors must be licensed or trained per Carrier
and legal requirements.
b. Pre-shift PIV inspections.
c. Keys must never be left in PIV ignition (where keys are used).
d. No operator below 18 years of age is permitted to drive a PIV.
e. Materials, finished goods, parts, etc., moved by PIVs are to be stored
in designated areas and never block designated walkways
f. Unstable or slippery materials must be secured to pallets before
transportation.
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g. No damaged or broken pallets must be used to transport materials.
h. Damage to PIVs that could result in a safety-related incident must be
immediately isolated (e.g., damaged hydraulics or safety device, etc.).
i. Safe work practices for loading and unloading truck and trailer units;
truck and trailer wheels must be choked/blocked at a minimum.
j. Use of cell phones or other communication devices is banned while
operating a PIV (e.g., no speaking on the phone, texting)
k. Use of earphones or audio devices for music or social media is
banned while operating a PIV
l. Smoking, eating, or drinking is banned when operating a PIV
5.3.29 A TPM program must be in place for each PIV and completed as
stated within the manufacturer's instructions. Additionally, TPM
program must include:
a. Regularly repaint the PIV fleet to allow for easy identification of
incidents or damage.
b. Screens, covers, or additional attachments outside the manufacturer's
instructions must not be added to any PIV.
PERSONAL PROTECTIVE EQUIPMENT (PPE) & WORK EQUIPMENT
5.3.30 PIV operators within Carrier operations (all sites with PIVs) must wear
the following PPE when operating PIVs:
• Safety shoes
• High visibility vests
• Safety glasses (for PIVs with fully enclosed cabins, safety glasses
are not mandatory)
• Gloves (material handling gloves to be available on the PIV)
5.3.31 When Liquid Propane Gas (LPG) is used to refill cylinders or when
changing cylinders on PIVs, all PIV operators must wear the following
PPE:
• Safety shoes
• Refrigerant handling gloves
• Safety glasses
5.3.32 Use of high visibility clothing is mandatory for pedestrians and
operators when exposed to forklifts in the following situations:
a. When entering logistics and warehouse areas
b. Where forklifts have not been eliminated from production areas and
operators are routinely exposed to forklift traffic.
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5.3.33 Battery charge station - where PIVs have wet cell batteries that require
operators to add water to the battery cell, then the below PPE must be
worn:
• Safety shoes
• Nitrile/chemical gloves
• Acid-proof apron
• Safety goggles
• Face shield
• PIVs that do not have wet cell batteries and only require water top-
up through refill connection points (e.g., hose from the PIV battery)
do not require task-specific PPE as there is no potential for
contact with acids from battery cells.
5.4 Use of PIVs by Contractors
5.4.1 Contractors must not operate any Carrier owned or leased PIVs unless
the following applies:
a. The contractor is formally approved and has been given authority to
operate PIVs on Carrier premises (contractor must comply with
Carrier EH&S Contractor Management Standard)
b. The contractor is a temporary worker from an approved agency
c. The contractor provided evidence of their current license (for the type
of PIV they will operate)
5.5 Medical Surveillance Requirements
5.5.1 Employees who operate any PIV must be medically fit for their role
and be able to operate the specific equipment for an entire shift.
5.5.2 Where there is concern about PIV operators' medical fitness, then this
must be assessed by the company doctor and occupational specialist
in conjunction with HR and EH&S.
a. When feasible, PIV operators deemed not medically fit will be
reassigned to a different role.
5.5.3 Where required by country regulations, occupational testing may be
necessary for PIV operators, and records must be maintained.
5.6 Management of Change (MOC)
5.6.1 Any Lean transformation plans that may affect PIV use, including
facility re-design or layout modifications, require a Management of
Change (MOC) assessment and review. Examples include:
a. Facility layout
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b. PIV flow
c. Implementation of Automatic Guided Vehicles (AGVs)
5.6.2 Management of change programs must ensure that all new
manufacturing or logistics/warehouses that are Carrier owned or
leased have dock locks installed.
5.6.3 Elimination/reduction of forklifts within production areas must remain a
target of any Lean transformation plans.
a. Where elimination is not feasible, control measures must be fully
implemented as stated in this standard.
b. Where additional PIVs are introduced due to change, the PIV
utilization study must be referred to and updated (see 5.2.5 above).
5.7 Inspections and Audits
5.7.1 PIVs must be included in the operations inspection and audit
program. PIV trending data must be gathered and considered within
annual program evaluations and improvement planning actions.
a. PIV inspection program must ensure that unsafe actions and unsafe
conditions are properly recorded.
5.7.2 Pre-shift inspections must be completed on each PIV for each shift
by trained and authorized operators (Appendix C template).
a. Pre-shift inspection is not required when a PIV is not used for a shift.
b. PIVs must not be used where damage or failures that could affect the
safety and performance of the PIV are identified.
5.7.3 Each PIV must be formally inspected by a qualified person (e.g.,
contracted third-party specialist) as required by the manufacturer and
as per regulatory requirements.
5.7.4 Manual hand pallet trucks must be inspected per regulatory
requirements; where no regulatory requirement exists, an internal
inspection is to be completed annually.
5.7.5 Any preventative maintenance or TPM must be documented and
performed per the manufacturer’s recommendations.
6.0 TRAINING
6.1 PIV operators must be trained and licensed to operate a PIV as per country
regulations, and records must be maintained.
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6.1.1 Training must be completed within 36 months (3 years) at minimum. If
local laws allow for a longer licensing expiration frequency, the
Carrier’s requirement must still be followed.
6.2 Refresher training must be completed following any major PIV-related incident
for Level 1, Level 2, or Level 3 HIPO incidents (for event classification, refer to
EH&S Incident Management standard).
6.3 Employees and contractors performing PIV maintenance and repair must be
trained and certified per applicable local laws, regulations, and manufacturer’s
guidance.
7.0 REFERENCES
• Carrier EH&S Policy (CPM 2), located in the ePolicy site
• Carrier Corporate Governance and Records (CPM 14), located on ePolicy site
• Carrier EHSOS Manual (link)
• Carrier H&S Risk Assessment Standard (link)
• Carrier High Bay Rack Safety Standard (link)
8.0 COMPLIANCE REQUIREMENTS
8.1 This standard is effective upon issuance. Full compliance with new requirements is
expected within 6 months from issuance; implementation milestones are below.
Implementation
Topic Action / Requirement from Standard
Date
Conduct a documented gap assessment of the revised
30 April
Gap Assessment standard against the local/site program and prepare an
2024
implementation plan to address the new requirements.
31 August 100% implementation of Carrier requirements and all
Full Implementation
2024 gaps closed.
8.2 The deviation process must be followed (work instruction) for deadline
extensions or exemption requests.
8.3 New acquisitions will implement this standard per the integration plan/schedule.
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9.0 APPENDICES
• Appendix A: Business Unit or Region-Specific Requirements
• Appendix B: PIV Utilization Study Template
• Appendix C: Pre-Shift PIV Inspection Checklist Template
10.0 REVISION HISTORY
10.1 This document will be reviewed in 3 years and updated if needed. Incidents,
identified gaps, employee feedback, and changes may anticipate the review.
Rev. # Revision Date Effective Date Description of Change Created by / Changed by
1 February 22, 2024 Upon issue New document. Supersedes the Tim Evans
legacy UTC SP 18
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APPENDIX A – BUSINESS UNIT/REGIONAL SPECIFIC
REQUIREMENTS
No specific requirements are identified in Rev 1 of this Standard
for Business Units or Regions.
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APPENDIX B – PIV UTILIZATION STUDY (TEMPLATE)
*** Minimum recommended information to be considered in a PIV study **
Energy PIV Locations Percentage (%) Retain or
PIV Type Assignment
Type Capacity Used of Time Used Remove?
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APPENDIX C – PRE-SHIFT PIV INSPECTION CHECKLIST (TEMPLATE)
Department Area PIV No Week No
• Tick answer below shows that the item was inspected, and no corrective actions or PIV safety issues were identified
• Cross answer below shows that the item was inspected, and corrective actions or PIV safety issues were identified
• PIVs must not be used where any significant damage or safety issue is identified
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Question 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd
Shift Shift Shift Shift Shift Shift Shift Shift Shift Shift Shift Shift Shift Shift
Is PIV free of visible
damage?
PIV is free of visible
oil / hydraulic
leaks?
PIV is in a clean,
orderly?
Is seat belt
operational?
Headlights are
functional?
Are visual indicator
lights functional
(blue/red spots)?
Are safety indicator
lights functional
(halo)?
Are horn and
backup alarms
functional?
Are hydraulics
functional, up and
down?
Is the parking brake
functional?
Are tires free from
damage? Do not
need replacement?
ACTION PLAN
Corrective actions must be immediately reported to the Line Manager or Supervisor.
Description of the problem Responsible Due Date
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1.0 PURPOSE
Establish the Carrier’s requirements for identifying, controlling, and mitigating risks
associated with working at height.
This standard supports the implementation of Lead with Safety – Working at Height
Safety Commitment.
2.0 SCOPE
2.1 This standard applies to:
Plants Logistics / R&D Field Service Offices / Other
(Manufacturing) Warehouses / Projects*
✓ ✓ ✓ ✓ ✓
(Where working at height is
executed)
* Note - Field Service/Projects include Carrier Rental and other service field operations
• Subsidiaries and joint ventures where Carrier has operational control or its
interest is 50% or more.
2.2 If there is a conflict with country/local regulations, Carrier standards, or customer
requirements, the most protective/stringent requirement(s) must be applied.
2.3 The Carrier Vice President of EHS must approve any deviation from
requirement(s) in this standard. Any deviation request must be documented, and
an action plan must be included with alternative measures (work instruction).
3.0 DEFINITIONS
Aerial lift A portable platform or work surface designed to be adjustable to different
(Also known as cherry levels. Designs can be powered or manually driven and may include but
picker, mobile elevating
work platform (MEWP)) are not limited to vertical lifts (scissors lifts), telescopic arm booms, and
articulating boom platforms.
Anchorage point A secured point of attachment for lifelines, lanyards, or deceleration
(Also known as tie-off equipment is used with personal fall protection equipment.
points)
Body belt A strap about the waist and attaching it to a lanyard, lifeline, or deceleration
device (Body belts are prohibited within Carrier; full-body harnesses are
only permitted).
Body harness A set of straps secured about the body in a manner that will distribute the
force of the fall over the thighs, waist, chest, and shoulders.
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Competent person A person certified through formal training (such as a structural or
for fall protection mechanical engineer) with experience understanding and correcting
problems related to repairing or replacing fall-related equipment.
Connector A component that attaches various pieces of a personal fall protection
system. It may be an independent system component, such as a carabiner,
or an integral part of the harness or lanyard, such as a D-ring, body
harness, or a snap-hook permanently attached to the unit.
Danger zone The area below the overhead work that could reasonably be expected to
be impacted by falling materials, debris, etc.
Dangerous Equipment that, because of form or function, may be hazardous to
equipment employees who fall onto or into it (e.g., degreasing units, machinery,
electrical equipment, etc.).
Deceleration A mechanism that dissipates or limits the energy imposed on an employee
device during a fall arrest (e.g., rope grabs, tearing or deforming lanyards, and
automatic self-retracting lifelines/lanyards).
Fall arrest lanyard A form of fall protection that involves the safe stopping of a person who is
already falling.
Fall restraint A form of fall protection that prevents a worker from falling from a work
lanyard position or from traveling to an unguarded edge from which the worker
could fall.
Fixed ladder A ladder that is permanently attached to a building or structure.
Guardrail system A vertical barrier system consisting of top rails, mid rails, and posts to
prevent employees from falling to a lower level.
Fragile surface Surfaces and materials that will not safely support a person's weight and
any materials they may be carrying.
Lanyard A length of webbing or cable typically attached to the D-ring of a worker's
safety harness and secured on an anchor point.
Lifeline (LL) A component consisting of a flexible line that can be connected to an
anchorage at one end to hang vertically (vertical LL) or for connection to an
anchorage at both ends to stretch horizontally (HLL) and serves as a
means for connecting other components of a personal-fall-arrest system to
the anchorage.
Portable ladder A climbing device usually consisting of side rails joined at intervals by
steps, rungs, or rear braces that can readily be moved or carried (can
include stepladders, straight ladders, extension ladders, combination
ladders, and rolling stairs).
Roof hatch A roof access system that allows access to a flat roof, usually
complemented by a fixed ladder or stairway.
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Scaffold A temporary elevated or suspended work unit and its supporting structure
to support workers, materials, or both. Depending on the work application,
scaffolds may have many designs and types.
Step ladder A ladder with steps for climbing up and down that can stand on its own or
be folded for carrying.
Toe board A horizontal piece of wood or metal running horizontally near a roof,
platform, or scaffold edge that prevents objects, tools, and equipment from
falling over an edge.
Three-point Bodily contact with a ladder without necessarily requiring hand-grip support
contact (e.g., climbing a ladder - two feet and one hand, two hands and one foot;
working from a ladder, for tasks that require two hands then – two feet and
shins, thighs, body).
Work at Height All work at a height of 6 feet (2 meters) or more and outside of protected
guard rails and man lifts.
Working at Height Includes but is not limited to harness, lanyards, connectors, and associated
PPE equipment.
4.0 ROLES AND RESPONSIBILITIES
VP of EH&S • Responsible for Carrier’s overall Working at Height program
• Approves deviation requests from this standard
WHQ EH&S Leaders • Support standard implementation across Carrier
• Direct technical resources where required to ensure an
effective Working at Height program
Operations and Service • Support standard implementation across the BU/region
Leaders / Regional EHS / • Direct technical resources where required to ensure an
BU EHS effective Working at Height program.
• Periodically validate the effective implementation of the
Working at Height program (through inspection, audit,
program evaluation, program review, metrics, etc.).
Senior Operation • Accountable for standard implementation within the operation
Managers (Service/ • Hold managers and supervisors accountable for implementing
Operations Plant Manager) an effective Working at Height program that complies with
Carrier and regulatory requirements
• Ensure working at height is included within employee and
contractor training plans
• Accountable for implementing an effective MOC program
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Supervisor (Service / Plant • Ensure implementation of this standard within the service
Operations) branch or production area.
• Ensure an effective inspection program has been
implemented that includes all work-at-height equipment,
including ladders, harnesses, lanyards, platforms, etc.
• Hold employees accountable for completing pre-use
equipment inspections, reporting any damaged work at height
equipment, and performing work at height tasks as per Carrier
program requirements
• Ensure working at height is included within employee and
contractor training plans
• Support the management of change MOC program
• Stop Work following the identification of a Safety Commitment
violation or a high-risk hazard
Employees • Complete pre-use equipment inspections, report any
damaged work at height equipment and perform work at
height tasks as per Carrier program requirements
• Attend any working at height training provided by Carrier
• Actively participate in the MOC program
• Stop Work following the identification of a Safety Commitment
violation or a high risk hazard
Contractors • Complete pre-use equipment inspections, report any
damaged work at height equipment and perform work at
height tasks as per Carrier program requirements
• Attend any working at height training provided by Carrier
• Stop Work following the identification of a Safety Commitment
violation or a high risk hazard
5.0 PROCEDURE
5.1 Working at Height Program
5.1.1 Each operation (all sites who perform work at height) must have a
written Working at Height program in place that includes, at a
minimum:
a. Working at height risk assessment
b. Pre-task risk assessment
c. Inventory of work at height equipment
d. Audit and inspection
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e. Training and communication
5.2 Hazard Identification & Risk Assessment
5.2.1 Each operation must:
a. Identify all working at height hazards related to tasks and activities
performed at Carrier and customer locations such as production,
maintenance, logistics, field services, field projects, field warehouses,
etc.
b. Conduct a documented assessment of all risks related to working
at height above 2 meters (6 feet), considering the following:
• Fixed, portable, and rolling ladders
• Floor and wall openings
• Hoistways
• Maintenance of products and equipment
• Work on roofs, construction floor edges
• Loading dock areas
• Platforms, aerial lifts, and scaffolds
• False ceilings and fragile surfaces
• Loading and unloading of trucks (e.g., truck beds)
• Other work at height tasks for field services or projects
5.2.2 Carrier locations with working at height hazards must document risk
assessment on the hazard inventory as stated within the Health &
Safety Risk Assessment Standard.
5.2.3 Carrier field service or projects where working at height hazards are
present must document risk assessment within the pre-task risk
assessment or project risk assessment, as stated in the Health &
Safety Risk Assessment Standard.
5.3 Control Measures
5.3.1 Following the risk assessment, control measures must be identified
based on the hierarchy of controls; Mistake Proof-Level 1
(MPL1)/elimination must be prioritized when implementing measures.
ENGINEERED CONTROLS
5.3.2 Working at height is to be avoided where possible by following the
below guidance:
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a. Equipment at Carrier locations must be installed where possible to
eliminate working at height (e.g., electrical panels, service valves, and
isolation points are to be installed at a height where ladders and
access equipment are not required).
b. Equipment at customer locations must be installed, where possible, to
eliminate working at height (products and systems are to be designed
and installed at a height where ladders and access equipment are not
required).
5.3.3 Where work at height cannot be eliminated, collective fall protection
measures must be prioritized over PPE (e.g., guardrails prioritized
over harness and lanyard use, MPL1/elimination).
5.3.4 Guardrails must be installed on permanent and routinely used walking
and working surfaces above 2 meters (6 feet) and within 3 meters (10
feet) of an unprotected edge or a fragile surface.
a. Routinely used walking or working surfaces are those that need to be
accessed several times per week for normal work tasks such as TPM
or machine set up, etc.
5.3.5 Any floor opening greater than 30 cm (12 inches) in its least dimension
must be provided with appropriate guarding.
5.3.6 Permanently installed skylights designed with product certification
demonstrating they can withstand a person's impact or weight do not
require additional collective or personal safety controls.
a. Persons working within 3 meters (10 feet) from an unrated skylight
must be protected by fixed guardrails or by wearing working at
height PPE (harness, lanyards, and associated equipment) that is
connected to a certified and approved anchorage point or anchor line.
b. Where fixed guardrails are in place but where a work task may defeat
the guardrail (e.g., skylight TPM from a kneeling position) then
working at height PPE must additional be worn.
c. Skylights must all be labeled as:
• Fragile surfaces not for walking or working on, or
• Safe for walking or walking with load ratings
5.3.7 Surfaces not designed for walking or working must be considered
fragile (e.g., plasterboard ceilings, corrugated concrete roof panels,
etc.) until they are confirmed as non-fragile by a competent person.
a. Carrier locations must eliminate access to fragile surfaces through
installation of guardrail systems or other forms of barricade that
cannot be defeated (e.g., office ceilings).
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b. Visual warnings (e.g., capacity load or warning stickers) must be
placed on fragile surfaces to ensure persons accessing the area are
sufficiently alerted of the fragile surface hazard.
c. Surfaces at customer locations that cannot be confirmed as non-
fragile must be identified through pre-task risk assessment.
• Surfaces in ceiling voids, attic spaces, or on roofs without
designated walkways must be confirmed as non-fragile before
task commencement (e.g., the customer building manager may
provide evidence of surface strength).
5.3.8 Wall openings with a drop of more than 2 meters (6 feet) and
exposure to a fall hazard must be provided with appropriate guarding.
Where there is the potential for falling materials, a removable toe board
or the equivalent must also be provided.
5.3.9 A guardrail system must be installed on elevated work platforms over
2 meters (6 feet). Where guardrail installation is impossible, an
alternate means of protection must be provided.
a. Guardrail systems (including top rail, mid rail, and toe board) must:
• Be constructed at heights that are compliant with local regulations.
• Be capable of withstanding, without failure, loads compliant with
local regulations for outward or downward force.
• Have surfaces free from sharp edges and burrs to prevent
lacerations and snagging.
b. Where anti-slip matting is attached to elevated work platforms, and
damage is identified, the matting must be immediately replaced (e.g.,
worn rubber stair matting).
5.3.10 Personnel working on roofs at a height of 2 meters (6 feet) and
higher and within 3 meters (10 feet) from an unprotected edge must be
protected from falls by one of the following methods:
a. Construction of an approved guardrail system; or
b. Wearing working at height personal protective equipment (harness,
lanyards, and associated equipment) connected to a certified and
approved anchorage point or anchor line.
5.3.11 Personnel working above dangerous equipment at any height must be
protected from falling into or onto the equipment (e.g., gantry/fixed
stairs over a production line, TPM on top of production machines, etc.).
a. Safe systems of work for maintenance and repair tasks that take
place on top of production equipment must be documented within
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standard work instructions or within hazard inventories (risk
assessments).
5.3.12 Roof hatch systems at Carrier locations must be installed to allow for
safe access to flat roofs, ensuring that:
a. Braces, hydraulics, and supports maintain the roof hatch in an open
position without possible accidental closure.
b. Handholds or rails are in place to prevent slipping and falling when
climbing out of or into the roof hatch system.
c. Roof hatches are closed when not being actively used or when work
occurs within 3 meters from the edge of the roof hatch.
d. Braces, hydraulics, supports, handholds, or rails at customer sites are
reviewed when completing pre-task risk assessments.
5.3.13 Only the manufacturer or a competent person must perform major or
structural repairs on fall protection devices, climbing, or access
equipment (e.g., ladder or scaffold part replacement or repair, fixed
guardrail, or anchor point maintenance).
5.3.14 Any Carrier employees and contractors performing overhead work is
responsible for controlling the area directly below the work task,
ensuring people working below are protected from falling objects.
Controls are to be identified through the risk assessment process.
a. Danger zones below overhead work must be isolated using suitable
barriers, barrier tape, or other protections. Unauthorized persons must
be prevented from entering danger zones.
b. Hard hats must be worn by employees and contractors working below
overhead work.
c. Before each work shift, a pre-work inspection must be completed to
verify that the equipment and components are stored or located safely
and are not subject to falling.
d. Work zones below overhead work must be isolated at distances
stated within local regulations.
ADMINISTRATIVE CONTROLS
Ladders (fixed, portable, and rolling)
5.3.15 The operations risk assessment program must identify alternatives to
eliminate or reduce the use of ladders.
a. Where the use of other work equipment (e.g., platforms) is not
feasible due to a task being low-risk, short-duration, or in an area not
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allowing other means of access, the rules for the safe use of ladders
must be followed (Appendix B.1 - Ladder Rules & Requirements).
5.3.16 Ladders identified as requiring part replacement or maintenance must
only have OEM parts installed; if this is not possible, ladders must be
immediately destroyed and scrapped.
5.3.17 Portable ladders must be labeled with appropriate manufacturer labels
such as load capacities, rating, warnings, and inspection criteria
(ladders to be segregated until OEM labels are sourced and posted).
5.3.18 Three-point control must be maintained when climbing or working from
a ladder (e.g., climbing a ladder - two feet and one hand, two hands
and one foot; working from a ladder, for tasks that require two hands
then – two feet and shins, thighs, body).
a. Control requires a full-hand rounded grip to a horizontal rung when
possible.
b. Light tools are carried in a shoulder bag or holster attached to a belt
so that both hands are free for climbing.
c. Heavy or bulky loads must not be carried up or down ladders - a
pulley or other lifting device must be used.
5.3.19 Fixed ladders must have fall protection installed as per local
regulations.
a. Where regulations do not exist, any fixed ladder at a height greater
than 7.3 meters (24 feet) must be provided with a ladder safety cage
or personal fall restraint system
Aerial Lifts (cherry pickers, mobile elevating platforms (mews), self-
propelled booms, scissor lifts)
5.3.20 Each operation must ensure that aerial lifts are inspected, TPM is
completed per the OEM Manual or as required by regulations, and
documented records are kept.
5.3.21 Employee and contractor use of aerial lifts is to occur as stated in
Appendix B.2 (Aerial Lift Rules & Requirements).
Scaffolds
5.3.22 Carrier employees and general contractors are permitted to assemble
tower scaffolds (e.g., lightweight aluminum platforms, foldable
scaffolds, one-person scaffolds, etc.).
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a. General access scaffold can only be assembled and inspected by
approved scaffolding contractors (per the Contractor Management
Standard).
• Carrier employees and general contractors must only walk on,
work from, or climb general access scaffolds that are inspected as
required by local regulations.
5.3.23 Employee and contractor use of tower scaffold is to occur as stated in
Appendix B.3 (Tower Scaffold Rules & Requirements).
Roof Work
5.3.24 Carrier locations must implement a permit-to-work system for tasks
that require roof access (Appendix B.8 - Roof Work Permit).
Roof areas where general employee access is safe and is permitted
do not require roof work permits (e.g., staff breakout areas, canteen
areas, etc.).
a. Employees and contractors must only access roofs when they are
under the control of a permit.
b. Permits must state as a minimum:
• Persons who issued and received the permit
• Date and duration of work tasks
• Scope of work
• Risk assessment and control measures
• Permit closure once the work task is complete
5.3.25 Open permits (permits that do not require closure) are permitted:
a. Where closure is not required for tasks performed by the same person
for the same repeat task (e.g., daily or weekly maintenance tasks
performed by the same maintenance employee).
Field Service Work (working at height on commercial HVAC units)
5.3.26 Carrier operations must implement a safe system of work when service
and maintenance tasks are performed at height for customer locations,
including but not limited to employee or contractor work tasks for;
a. Working or standing on top of air-cooled chillers (e.g., replacement of
fan motors).
b. Working or standing on top of centrifugal chillers evaporators and
condensers (e.g., tasks requiring access to electrical panels, controls,
solenoids, sensors, and compressors).
PERSONAL PROTECTIVE EQUIPMENT (PPE) & WORK EQUIPMENT
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5.3.27 Employees and contractors performing work at a height above 2
meters (6 feet) where guardrails have not been installed and where
work takes place within 3 meters (10 feet) of the unprotected edge
must wear working at height personal protective equipment (harness,
lanyards, and associated equipment).
a. Work at height PPE must be connected to a certified and inspected
anchorage point or
b. To a structural immobile object with complete assurance that it cannot
fail (e.g., structural I-beam), and
c. Lanyards must only be connected to anchorage points or structural
immobile objects as stated within the OEM manual (e.g., lanyards are
not to be wrapped abound structural immobile objects unless
permitted within the OEM manual).
5.3.28 Operations must prioritize the issuance of work restraint over fall
arrest lanyards. The risk assessment program must ensure that
lanyards have been assessed and the correct lanyard type is used:
a. Work restraint lanyards – are designed to prevent falls (e.g., fixed
length or self-retracting)
b. Fall arrest lanyards – are designed to arrest a fall that has taken place
and should be chosen based on the potential fall distance of the
person using it (e.g., arresting the fall).
5.3.29 Rescue plans must be in place when a fall arrest lanyard is used
(Appendix B.11 - Fall Arrest Rescue Plan).
5.3.30 Work at height PPE must be labeled with manufacturer labels such as
load capacities, ratings, warnings, and inspection criteria.
a. Fall protection equipment older than the manufacturer's
recommended life span must be removed from service, destroyed,
and scrapped.
5.3.31 Work at height PPE must be stored per OEM manual requirements in
a clean, dry area free from oils, fumes, solvents, corrosive elements,
and excessive temperatures.
5.3.32 Employees and contractors required to wear work at height PPE must
follow Appendix B.4 - Work at Height PPE use Rules & Requirements.
5.4 Management of Change (MOC)
5.4.1 Any transformation plans that may introduce working at height
hazards, including facility re-design or layout modifications, require a
Management of Change (MOC) assessment and review.
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a. Examples include but are not limited to:
• Installation of new machines/TPM tasks on top of or above
machines
• Installation of new pipework, shut-off valves, and isolation points
• Construction of new buildings
5.4.2 The location of units, panels, service valves, etc., must be considered
during the MOC process to eliminate future tasks that may require
working at height (e.g., installed at ground level where possible).
5.5 Inspections and Audits
5.5.1 Carrier operations must include working at height in their inspection
and audit program.
a. Working at height, trending data must be considered part of annual
program evaluations and improvement planning actions.
b. Working at height inspection program must ensure that unsafe acts
and unsafe conditions are properly recorded.
c. Inspection records must be maintained.
5.5.2 Aerial lifts must be subject to pre-use inspections for each shift.
Appendix B.10 Aerial Lift Pre-Shift Inspection Checklist or equivalent
form/system with the minimum requirements must be used.
• Pre-shift inspection is not required if an aerial lift is not used for a
shift.
• Only trained/authorized operators must complete pre-shift
inspections.
• Aerial lifts must not be used where damage or failures that could
affect their safety or performance are identified.
5.5.3 Tower scaffolds must be subject to pre-use inspection.
• A pre-use inspection must occur as required by the OEM and then
reinspected every 7 days after or as required by local regulations.
• Scaffold inspections are to be recorded within pre-task risk
assessments.
• Scaffolds that fail inspection and cannot be repaired using OEM
parts are to be immediately destroyed and scrapped.
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5.5.4 Fixed ladders must be subject to pre-use inspection.
• Fixed ladder inspections at customer sites are to be recorded
within the pre-task risk assessment.
• Fixed ladders inspections for Carrier locations must be performed
annually.
• Fixed ladders that fail inspection must not be used and are to be
reported to the Line Manager, Supervisors, and customers.
5.5.5 Equipment inspection programs must include all work at height
equipment and this must be documented on an inventory (Appendix
B.5 - Inventory of Work at Height Equipment), or equivalent
form/system containing the minimum requirements, and records kept.
Equipment requiring formal inspection includes, at a minimum:
a. Ladders (fixed, portable, rolling, and small steps) must be inspected
annually. Appendix B.6 - Ladder Inspection Form or an equivalent
form/system containing the minimum requirements must be used.
• Ladders must be labeled with their inspection date and status
(e.g., pass/fail).
• Ladders that fail inspection and cannot be repaired using OEM
parts are to be immediately destroyed and scrapped.
b. Work at height PPE (harness, lanyards, and attachments) must be
inspected annually. Appendix B.7—Harness/Lanyard Inspection Form
or an equivalent form/system with the minimum requirements must be
used.
• Harnesses, lanyards, and attachments must be labeled with the
inspection date and status (e.g., pass/fail).
• Harnesses, lanyards, and attachments that fail inspection must not
be repaired; they must be immediately removed from service,
destroyed, and scrapped.
c. Other work at height equipment (e.g., anchorage points)
• Anchorage points must be certified by third-party specialists
annually or at a frequency stated in local regulations (where a
report is issued for a site's anchorage points, then the inventory
does not need to be utilized).
• Any other work at height-related equipment must be inspected as
local regulations require.
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6.0 TRAINING
6.1 Minimum work at height training requirements for Carrier employees:
Employee Group Minimum Training Content Frequency
General Awareness Safety Commitments • Initial (Orientation)
(Low risk employees, e.g., office) Carrier Work at Height Standard • Annual (Refresher)
Exposed Employees Safety Commitments
(High risk employees, e.g., Carrier Work at Height Standard • Initial (Orientation)
operators, maintenance, field Work at Height Hazards and Control • Annual (Refresher)
technicians) Measures applicable to tasks
6.2 Employees must have a current license, training, or certification according to
OEM and local regulations, this may include the following:
• Working at height PPE (harness/lanyards, etc.)
• Operation or TPM of aerial lifts
• Assembling of tower scaffolds
6.3 Refresher training must be completed following any work at height-related
incident for Level 1, Level 2, or Level 3 HIPO (for event classification, refer to the
EHS Incident Management standard).
6.3.1 Refresher training must address the root cause of the incident (e.g., fall
from ladder would require ladder safety training).
6.3 Requirements for contractor training, refer to Contractor Management Standard.
7.0 REFERENCES
• Carrier EHS Policy (CPM 2), located in the ePolicy site
• Carrier Corporate Governance and Records (CPM 14), located on the ePolicy site
• Carrier EHS Manual (link)
• Carrier Health & Safety Risk Assessment Standard (link)
• Carrier Contractor Management Standard (link)
• Carrier EH&S Incident Management Standard (link)
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8.0 COMPLIANCE REQUIREMENTS
8.1 This standard is effective upon issuance. Full compliance with new requirements
is expected within 6 months from issuance. Implementation milestones and dates
are listed below:
Implementation Topic Action / Requirement from Standard
Date
Conduct a documented gap assessment of the
Working ay Height
updated standard against the local/site program
31 July 2024 Standard - Gap
and prepare an implementation plan to address
Assessment
the new requirements.
15 December 100% Carrier requirements implemented and all
Full Implementation
2024 gaps closed.
8.2 For deadline extensions or exemption requests, the deviation process must be
followed (work instruction).
8.3 New acquisitions will implement this standard per the integration plan/schedule.
9.0 APPENDICES
• Appendix A: Business Unit or Region-Specific Requirements
• Appendix B: Working at Height Rules, Forms and Templates
10.0 REVISION HISTORY
10.1 This document will be reviewed in 3 years and updated if needed. Incidents,
identified gaps, employee feedback, and changes may anticipate the review.
Rev. # Revision Date Effective Date Description of Change Created/Changed by
1 June 5, 2024 June 5, 2024 New document. Supersedes the legacy Tim Evans
UTC SP 18
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APPENDIX A – BUSINESS UNIT/REGION SPECIFIC REQUIREMENTS
No specific requirements are identified in Rev 1 of this Standard.
for Business Units or Regions.
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APPENDIX B – WORKING AT HEIGHT RULES, FORMS & TEMPLATES
Appendix Name When to use Form
B.1 Ladder Rules & • Rules for safe ladder use that are to
Requirements be followed by all ladder users
Ladder Rules and
Requirements.docx
B.2 Aerial Lift Rules & • Rules for safe aerial lift use that are
Requirements to be followed by all aerial lift
Aerial Lifts Rules and
operators Requirements.docx
B.3 Tower Scaffold Rules & • Rules for safe tower scaffold use that
Requirements are to be followed by all persons
Tower Scaffold Rules
assembling tower scaffold and Requirements.docx
B.4 Work at Height PPE use • Rules for safe work at height PPE
Rules & Requirements use that are to be followed by all
Working at Height
users of work at height PPE PPE Rules and Requirements.docx
B.5 Inventory of Work at • Template that can be used for
Height Equipment recording all work at height
Inventory of Work at
equipment (ladders, PPE, etc.) Height Equipment.docx
B.6 Ladder Inspection Form • Template that can be used to perform
formal ladder inspections
Ladder Inspection
Form.docx
B.7 Harness/Lanyard • Template that can be used to perform
Inspection Form formal PPE inspections
Harness Lanyard
Inspection Form.docx
B.8 Roof Work Permit • Template that can be used for a
facilities’ permit to work
Roof Work
Permit.docx
B.9 Ladder Pre-Use • Guidance for how users of ladders
Inspection Guidance should perform pre-use inspections
Ladder Pre Use
Inspection Guidance.docx
B.10 Aerial Lift Pre-Shift • Template that can be used to perform
Checklist pre-shift inspections of Aerial Lifts
Aerial Lift Pre Shift
Inspection Checklist.docx
B.11 Fall Arrest Rescue Plan • Template that can be used when fall
arrest rescue plans are required
Fall Arrest Rescue
Plan.docx
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Global Leader in Intelligent
Climate and Energy Solutions
2023
Annual Report
Carrier 2023 Annual Report 1
Transforming today
for a better tomorrow.
Transformation begins with belief. That innovation can make
an impact. That taking care of people means taking care of the
planet. That our solutions have the power to improve life today
and tomorrow. It is why Carrier is transforming spaces every day.
In homes. In buildings. Across the cold chain. Our inclusive,
diverse team combines global and local expertise with an
uncompromising commitment to customers. Together, we deliver
intelligent, connected ecosystems and visionary breakthroughs
that help support comfort, health and productivity while
promoting sustainable energy usage.
We are Carrier. A global leader in intelligent climate and energy
solutions. For people, our planet and generations to come.
Contents
1 About Carrier 14 Sustainability
Financial Performance 16 Our People & Culture
2 A Message from 18 Corporate Social Responsibility
Our Chairman & CEO 19 Financials
4 Programs 20 Cautionary Note Concerning Factors
6 HVAC That May Affect Future Results
8 Refrigeration 69 Reconciliation of Non-GAAP Measures to
10 Fire & Security Corresponding GAAP
12 Aftermarket 72 Board of Directors
Digital 73 Leadership
13 Innovation 74 Shareowner Information
Operations Inside Back Cover
Recognition & Industry Leadership
About Carrier
Carrier is a global leader in intelligent climate and energy solutions, with a
diverse and world-class workforce. Through our performance-driven culture, 160+ ~53,000
we are creating long-term shareowner value by growing earnings and investing Countries Employees
strategically to strengthen our position in the markets we serve.
2023 Financial Performance
$22.1B $3.2B 14.5% $617M
Net sales Adjusted operating profit 1
Adjusted operating margin 1
Research and development
$2.73 $2.1B $0.74
Adjusted diluted Free cash flow 1
Dividends paid
earnings per share 1 per common share
Net sales 2 by segment Net sales by region Net sales mix
Fire & Security Asia Pacific Parts and
service
16% 20%
HVAC Americas 24% New
equipment
Refrigeration 67% EMEA 58%
17% 22% 76%
Historical Performance
Net sales Adjusted operating profit 1 Adjusted operating margin 1 Research and development
(dollars in billions) (dollars in billions) (percent) (dollars in millions)
20.6 22.1 3.2 13.7 14.2 14.5 617
20.4 2.8 2.9 539
503
21 22 23 21 22 23 21 22 23 21 22 23
Adjusted diluted Free cash flow 1 Dividends paid
earnings per share 1 (dollars in billions) per common share
(dollars per share) (dollars per share)
2.73 2.1 0.74
2.27 2.34 1.9 0.60
1.4 0.48
21 22 23 21 22 23 21 22 23
1
See page 69 for additional information regarding non-GAAP measures.
2
Segment sales include intercompany sales.
Carrier 2023 Annual Report 1
Dear Fellow Shareowners,
2023 was a monumental year for Carrier as
we initiated our transformation to become
the global leader in intelligent climate and
energy solutions.
Sharpened strategic focus: portfolio transformation
I am proud to say we delivered excellent results as we
transformed our portfolio and embarked on a journey to
become a more agile, simpler, higher-growth, customer-
centric company. Our focus is clear and unwavering: to be
the global leader in intelligent climate and energy solutions.
Heating and cooling of buildings and homes, together with
food waste, contribute an estimated 25% of annual carbon
emissions and play a significant role in global warming and
climate change. Our industry has both the opportunity
and the obligation to be part of the solution. This challenge
is the catalyst for Carrier’s portfolio transformation and
drives the decisions we make and the priorities we set for
our investments and product offerings.
The cornerstone of our portfolio transformation is our
recent combination with Viessmann Climate Solutions,
which I believe will be viewed as the most impactful
business combination our industry has ever seen.
Viessmann Climate Solutions is the premier company in the
David Gitlin
most attractive space in our industry — residential heating
and cooling in Europe — which is undergoing a significant
shift from fossil fuel boilers to energy-efficient electric heat
Chairman & Chief Executive Officer
pumps. Viessmann Climate Solutions enhances our existing
global portfolio with access to the iconic Viessmann brand,
a differentiated channel, and a reputation built over more
than 100 years for manufacturing premium products and
highly efficient and renewable climate solutions. Together,
we now have the most comprehensive and differentiated
$22.1B $2.73
suite of sustainable technologies and services to address
our customers’ business and sustainability goals. We are
thrilled to welcome the 12,000 Viessmann Climate Solutions
Net sales Adjusted diluted
team members to Carrier.
earnings per share 1
We also made the pivotal decision to exit our Fire & Security
segment and commercial refrigeration business. In December,
we announced the sale of our security business, global
$2.1B $57.45
access solutions, to Honeywell for an enterprise value of
$4.95 billion, quickly followed by a definitive agreement
to sell our commercial refrigeration business to Haier for
Free cash flow 1 CARR stock price as of
$775 million. We are making good progress on our other
December 31, 2023
business exits and are preparing to exit them throughout
the course of 2024.
Upon the completion of our transformation, we will be a
higher-growth pure-play company with over 6,000 engineers
around the world focused on providing our customers with
1
See page 69 for additional information regarding non-GAAP measures. innovative and differentiated sustainable solutions.
2 Carrier 2023 Annual Report
Well positioned to lead in the rapid climate and financial results for the year demonstrate that our
energy transition playbook is working. We are actively pursuing areas
Through our acquisitions and rigorous innovation, we are of growth by focusing our resources and efforts on
advancing our portfolio of solutions focused on efficiency key verticals and geographies that present the
and electrification, in support of the shift from fossil fuel greatest opportunities.
to electric heating. We also remain focused on helping our
customers achieve their climate goals, including net-zero We surpassed all our financial projections for 2023 by
commitments, and we are on track to reduce our customers’ growing sales 8%, adjusted diluted earnings per share
carbon footprint by more than 1 gigaton by 2030. by 17% and free cash flow by 54% year over year. Our
light commercial business grew 35% — an industry best.
Heat pumps are a vital tool to address the rapidly growing Strong cost discipline resulted in over 200 basis points of
demand for sustainable building solutions. In Europe, new gross margin expansion. Importantly, we took key steps to
regulations and incentive programs are expected to result accelerate growth initiatives and productivity programs
in approximately 400% growth in the region’s heat pump to position the company for future success. We are
installed base by 2030. In the United States, the Inflation confident Carrier will achieve another year of growth
Reduction Act is further incentivizing the transition to heat and strong margin expansion in 2024.
pumps, as government subsidies provide Americans with
access to $370 billion for clean energy investments in Carrier’s culture is the backbone of our success. Our team
the form of tax credits, incentives and rebates to improve demonstrates The Carrier Way every day by operating
energy efficiency and, notably, a $2,000 incentive for with integrity as we innovate and enact positive change
residential heat pumps. We are starting to see this transition for people and our planet. We have now embedded
play out around the world, and we expect significant those principles into our talent philosophy, connecting
acceleration throughout 2024. our hiring, development and leadership practices with
our strong culture. And it is paying off — we continue
Driving greater recurring revenues in aftermarket and to be recognized as an employer of choice with strong
digitally enabled lifecycle solutions sustainability and innovation leadership. Carrier was
We are transitioning from an equipment-only provider to named to Forbes’ list of the World’s Best Employers,
a leader in digitally enabled lifecycle solutions. In 2023, we Fortune’s list of the World’s Most Admired Companies
saw positive traction through increases in both the number and TIME’s inaugural World’s Best Companies list. We
of connected and connectable devices as well as customer are also proud to be ranked eighth on Barron’s list of the
subscriptions across key geographies. By year-end, our 100 Most Sustainable Companies, reaffirming the positive
commercial HVAC business had nearly 75,000 chillers under impact our climate solutions are having on the planet
long-term BluEdge service agreements and approximately for generations to come.
29,000 connected chillers.
Looking ahead
We continue to make significant investments in our two We remain focused on successfully integrating Viessmann
key digital platforms — Abound for buildings and Lynx for Climate Solutions and completing our business exits.
the cold chain. Both platforms are helping us drive strong Through these critical steps, we will become a digitally
and consistent double-digit growth for our aftermarket enabled, end-to-end sustainable climate and energy
business. Abound now monitors over 1.1 billion square feet solutions provider. We will address all heating, cooling,
of building space, and nearly 115,000 refrigeration units renewable energy, storage and energy management needs
equipped with Lynx are under paid subscriptions. We for the home, buildings and cold chain applications.
are also unlocking incremental value through long-term We will continue to transform and perform, remaining
BluEdge service contracts, enabling customers to realize laser-focused on the needs and goals of our customers.
the benefits of connected devices and the Internet of
Things, enhancing efficiency and performance, lowering My conviction in Carrier’s strategy, long-term growth
costs and improving building health. opportunity and commitment to delivering shareowner
value has never been greater. Thank you to all our investors
Given the strong performance of our parts and service for your continued confidence in our future and to our
business, we remain confident in our ability to continue to employees for tirelessly driving our business to new
generate double-digit aftermarket growth, as we have for heights as the global climate leader.
the last three years — underscoring the strength of this
higher-margin business as a meaningful pillar of our Sincerely,
value proposition.
Performing while transforming and delivering strong
financial execution David Gitlin
In 2023, our team controlled the controllables and Chairman & Chief Executive Officer
consistently delivered on our commitments. Our strong Carrier
Carrier 2023 Annual Report 3
At Carrier, we are committed to positively
impacting people and our planet.
We do this through our Healthy Buildings, Healthy Homes and Connected Cold Chain programs,
which bring together expertise from across our company and solutions from our industry-leading
brands. Together, we take on the world’s toughest challenges and shape a better tomorrow.
Leading the way to smarter, more sustainable buildings We educate consumers on the importance of creating
Through our Healthy Buildings Program, Carrier provides healthy home environments and the factors that go into a
solutions and services that optimize building systems and healthy home, such as having smoke and carbon monoxide
transform indoor spaces to support productivity and well- alarms. Together with fire departments, community
being. We offer advanced ventilation and filtration solutions, organizations and other partners, Kidde provides resources
touchless products, indoor air quality assessment tools and to schools and families to make healthier homes more
more. Our digital platforms monitor building health to help accessible to all. Kidde was named to Fast Company’s
mitigate potential issues and achieve peak performance Brands That Matter list for its efforts to provide innovative
and efficiency. We invest in research and development to home safety devices and education to those in need.
fuel the growth of climate solutions that meet the needs of
customers and help them achieve their sustainability targets. Connecting an intelligent, more effective cold chain
Carrier protects and extends the supply of food, medicine
Carrier’s Abound suite of connected lifecycle solutions and other perishable goods around the world through our
and services provides visibility into building assets to help Connected Cold Chain Program. Our electric and digital
improve energy efficiency, enhance occupant comfort and solutions improve cold chain connectivity, sustainability
productivity, and streamline compliance reporting. A new and effectiveness. We continue to be a leader in the global
offering, Abound Net Zero Management, tracks and reports dialogue around how reliable transport and preservation
energy and carbon performance to help building owners can reduce food waste and help mitigate climate change.
and managers prioritize specific reduction measures to
meet their energy and sustainability goals. We expanded our Lynx Fleet digital offering to provide
comprehensive monitoring capabilities for refrigerated
In alignment with our Healthy Buildings Program, LenelS2 trucks and trailers in China and India. The intelligent
launched On The Safe Side, a program designed to empower solution improves visibility throughout the cold chain to
families, schools and communities to have more impactful improve fleet uptime and asset health management, and
discussions about school security. LenelS2 developed drive operational efficiencies.
a conversation guide for families and tools to help
administrators navigate the government funding process. Carrier added an electrification dashboard to the Lynx Fleet
digital platform, helping fleet owners in Europe manage the
Creating healthier, more efficient homes transition to electric refrigeration technology. The dashboard
We transform indoor spaces to maximize health and provides insight into the state of battery charge, tracks
comfort through our Healthy Homes Program. Carrier carbon dioxide emissions avoided, supports compliance
provides a full range of products and solutions through with the latest cold chain regulations and helps customers
our HVAC and fire safety businesses. monitor progress toward their sustainability goals.
We are constantly innovating to bring healthy home solutions Our efforts to expand the global cold chain extend into
and technologies to our customers. For example, Carrier local communities and support economic growth. In India,
introduced a carbon air purifier with ultraviolet light that for example, Carrier provided refrigerated trucks that were
helps remove unwanted odors, volatile organic compounds distributed to fish farmers to help export produce to a
and common household gases from indoor air. In addition, growing group of local and neighboring markets.
Carrier was named the Best HVAC Company by U.S. News
& World Report for the second consecutive year, based on
advanced technology, energy efficiency and innovation.
4 Carrier 2023 Annual Report
Carrier provided more than 42,000 high-
efficiency portable air purifiers and replacement
HEPA filters to K-12 schools and licensed early
childhood education providers in Colorado.
The solutions were funded by the federal
Elementary and Secondary School Emergency
Relief Fund to improve indoor air quality and
reduce exposure to harmful particulates,
allergens and other pollutants.
Kidde expanded its suite of Wi-Fi-enabled home
health and safety products with the launch of
three additional connected detection devices.
The smart products include devices for whole-
home detection of smoke, carbon monoxide,
indoor air quality issues, water leaks and frozen
pipes. Consumers receive real-time alerts about
potential issues via their smartphones and
connected devices.
Sensitech launched a digital offering to monitor
shipments through the SensiWatch platform,
which connects to the Lynx digital ecosystem.
The cloud-based solution uses sensors to
monitor outbound cargo from distribution
centers to stores and restaurants. Real-time
temperature alerts help ensure the freshness
and safety of food and other perishables.
Carrier 2023 Annual Report 5
HVAC
As a global leader in intelligent climate and energy solutions, Carrier is at
$15.1B the forefront of heating, ventilating and cooling solutions for residential,
commercial and industrial customers around the world. Through an
Net sales
industry-leading family of HVAC brands, our global presence, and our
innovative and differentiated digital solutions, we are transforming the built
$2.5B environment to be more energy efficient, sustainable and autonomous.
Adjusted Our solutions help customers achieve their targeted outcomes, including
operating profit 1 Abound, which monitors over 1.1 billion square feet of building space to help
improve indoor air quality, and enhance occupant comfort and productivity.
16.6% Our HVAC businesses continue to develop Carrier introduced the Toshiba Daiseikai 10
Adjusted energy-efficient connected solutions that help air conditioner in Nordic countries, bringing
operating margin 1 customers meet their sustainability goals, while sustainability, sleek design and performance
improving comfort and productivity in homes to homes across the region. The indoor unit
and buildings around the world. features ultra-quiet operation, a wooden grille
sourced from sustainable forests, and plastic
In Europe, Riello launched a range of heat components made from 43% recycled materials.
pumps for residential properties that In addition to a best-in-class energy rating in
provide year-round comfort and control. cooling and heating, the ductless system offers
The solutions are energy-efficient alternatives motion tracking and connectivity through a
to conventional wall-mounted gas boilers and remote control, app and smart speakers.
use a refrigerant with lower global warming
potential than a traditional refrigerant. The Carrier launched InteliSense Technology, an
1
See page 69 for additional
information regarding heat pumps feature quiet operation and a industry-first advanced smart technology for
non-GAAP measures. slim profile for homes and apartments. midtier residential HVAC systems that provides
real-time data to technicians via a mobile app or
online portal. Sensor data from the equipment
Carrier released Abound Net Zero
Management, a digitally enabled lifecycle
sustainability solution that provides building
owners and managers a way to measure,
track, view and report energy and carbon
performance across their entire property
portfolio. It is part of Carrier’s Abound
suite of connected lifecycle solutions
and services, which provides visibility into
building assets to improve energy efficiency,
enhance occupant comfort and productivity,
and streamline compliance reporting.
6 Carrier 2023 Annual Report
The city of Aventura, Florida, built on its
long-standing relationship with Carrier
by purchasing two air-cooled chillers
and a Carrier i-Vu control system for a
government building. The new building
automation system will help increase
energy efficiency across the facility.
The contract also includes a 10-year
comprehensive equipment warranty.
Carrier won a contract to provide
Toshiba variable refrigerant
flow (VRF) systems for high-rise
residential buildings at Jiuhai
Yuntian, an international science
and technology community in
China. Expanding upon a prior
contract for the project, the
energy-efficient systems will help
support the country’s carbon
reduction goals.
is communicated to an InteliSense-enabled thermostat, over a 22-year term. The improvements are projected to
allowing dealers to remotely monitor the system’s reduce the facility’s energy usage, carbon emissions and
operational health and proactively diagnose potential water consumption.
issues to decrease downtime and maintain home comfort.
Carrier conducted an energy audit of chiller systems
Customers across the globe continue to trust our HVAC across several branches of Changhua Christian Hospital
businesses to meet their most critical needs. and helped prepare an energy savings proposal that
qualified the customer for a government subsidy program.
Long-standing customer Canadian Solar purchased The contract for the retrofit project includes five higher-
19 water-cooled centrifugal chillers from Carrier. The efficiency water-cooled chillers, and Automated Logic will
high-efficiency chillers feature a compact footprint and deploy a WebCTRL building automation system to monitor
are designed for high-capacity operations. The equipment a chiller plant and optimize efficiency. The agreement
was installed at the company’s Thailand factory, where also includes a five-year BluEdge service contract, driving
it manufactures solar technology solutions to meet the recurring revenue for the business.
growing demand for sustainable energy.
In China, Carrier secured a contract to install energy-
The U.S. Environmental Protection Agency’s National efficient centrifugal chillers and heat pumps for a terminal
Vehicle and Fuel Emissions Laboratory selected energy expansion at Chongqing Jiangbei International Airport. In
and sustainable solutions provider NORESCO to implement addition, Carrier provides consulting services to optimize
a decarbonization program through an energy savings chiller plant performance. The comprehensive HVAC
performance contract. The program includes energy solution will help the airport meet its sustainability goals
efficiency improvements, critical infrastructure upgrades, and maintain a comfortable indoor environment for
and comprehensive operations and maintenance services millions of travelers each year.
Carrier 2023 Annual Report 7
Refrigeration
Carrier is a global leader in cold chain transport equipment and monitoring
$3.8B solutions with the largest distribution network of nearly 1,700 dealers,
distributors and service centers. We differentiate ourselves with both scale
Net sales
and technology to serve as a trusted partner throughout the cold chain.
We are helping lead the shift toward electrification, more connected
$449M technologies and refrigerants with lower global warming potential.
Adjusted
operating profit 1 We enable a more sustainable and intelligent Carrier also introduced the OptimaLINE
cold chain by preserving, protecting and container refrigeration unit, which reduces
extending the supply of fresh food, lifesaving carbon dioxide emissions and improves fuel
11.8% medicine and other perishable goods for people
around the world. Our refrigeration solutions
efficiency compared with prior units, lowering
customers’ annual energy costs. The unit
Adjusted help customers achieve their sustainability goals integrates with Carrier’s Lynx Fleet telematics
operating margin 1 while maximizing operational efficiency and platform to improve operations by remotely
product quality. Carrier’s Lynx digital ecosystem monitoring refrigeration systems, location
offers a suite of advanced analytics solutions data and more.
that provides customers with enhanced
visibility, increased connectivity and actionable In our commercial refrigeration business,
intelligence across their cold chain operations. Carrier launched a range of heat pumps in
Europe featuring a compact, efficient design
Our Refrigeration businesses continue to innovate that significantly reduces direct and indirect
connected solutions that help customers emissions. The heat pumps use carbon
optimize their refrigeration technology and dioxide as a natural refrigerant to offer a more
meet energy, carbon and waste reduction goals. sustainable energy supply solution to heat or
cool commercial buildings, district heating
Carrier launched a lineup of trailer refrigeration grids and various industrial processes. In
models that significantly improve fuel efficiency addition, remote monitoring and preventive
and reduce particulate emissions to achieve maintenance technology help customers
lifetime compliance with the latest California extend the product lifespan and optimize the
emissions standards. The units use a refrigerant efficient use of their systems.
with lower global warming potential and are
equipped with Carrier’s Lynx Fleet telematics The Refrigeration segment had several key
solution to remotely monitor temperature, wins throughout the year, meeting the needs
location, movement and operating performance. of customers around the world.
In North America, Carrier introduced two all- Carrier provided 2,000 PrimeLINE refrigeration
electric truck refrigeration models to increase units featuring Lynx Fleet to Yang Ming Marine
the efficiency, reliability and sustainability of Transport Corp., allowing the customer
midsize and large trucks. In addition to using a to transport and monitor a wider range
refrigerant with lower global warming potential, of perishables on longer journeys, while
the units have improved electric standby maintaining quality. The Lynx Fleet solution
operation capacities to help customers reduce includes proprietary technology that monitors
their carbon footprint. performance and provides early warning
actionable diagnostics and predictive
In Europe, Carrier launched an all-electric analytics. The energy-efficient refrigeration
temperature-controlled refrigeration unit that is units support Carrier’s companywide goal of
energy efficient and easy to install. Compatible helping customers avoid more than 1 gigaton
with most electric trucks, the new Syberia eCool of greenhouse gas emissions by 2030.
system delivers zero direct engine emissions
1
See page 69 for additional
information regarding and ultra-low noise operation, meeting the
non-GAAP measures. latest regulations for urban areas.
8 Carrier 2023 Annual Report
Carrier launched Lynx Logix, a
software-as-a-service solution
that helps anticipate and mitigate
supply chain disruptions by
identifying trends, patterns and
issues in distribution networks or
transportation lanes. The solution
leverages artificial intelligence
and machine learning to generate
predictive insights and proactively
improve supply chains. Lynx Logix is
offered through a digital subscription
that uses an online portal.
Long-time customer FreshLinc purchased Carrier
temperature-controlled trailers and tractor
units fitted with Eco-Drive systems that use
electric power from the truck’s engine to power
the refrigerated trailers. The solutions offer fuel
and emissions savings, reducing the carbon
footprint of FreshLinc’s commercial vehicle fleet.
The units are backed by Carrier’s BluEdge full-
service maintenance package, including annual
temperature control testing and certification, full
regulatory checks and access to 24/7 incident
management service.
Great White Fleet, a company under
Chiquita Brands, expanded its use
of Carrier PrimeLINE container
refrigeration units to transport
bananas on routes from Central
America to North America. The
energy-efficient units are helping the
customer achieve its sustainability
goals by reducing fuel consumption
and emissions, resulting in a smaller
carbon footprint and cost savings.
Carrier 2023 Annual Report 9
Fire & Security
With industry-leading brands like Kidde, Edwards, LenelS2, Det-Tronics and
$3.6B GST, customers trust us for all their safety and security needs, from the most
complex jobs to the simplest conveniences. We offer a comprehensive suite
Net sales
of lifecycle solutions, connected technologies, mobile applications and
cloud-based services. We lead the market in innovation, from best-in-class
$543M water mist technology with Marioff to industry-first smart, integrated indoor
Adjusted air quality, smoke and carbon monoxide detectors for the home.
operating profit 1
Our Fire & Security businesses continue to secured areas or resources by holding an
develop innovative and intelligent solutions iPhone or Apple Watch near the keyless access
14.9% that make the world a safer place to live. reader. The solution does not require third-
party integrations, reducing the total cost of
Adjusted In our residential business, Kidde added ownership and creating a safer environment for
operating margin 1 three Wi-Fi-enabled detection devices to employee data.
its comprehensive suite of fully integrated
home health and safety product offerings. Customers continue to rely on our Fire &
The connected devices include the industry’s Security businesses to protect people and
first plug-in device to combine carbon property across a wide range of applications.
monoxide detection with an indoor air quality
(IAQ) monitor, the industry’s first device to In our commercial fire business, Edwards
combine smoke detection with an IAQ monitor, installed an integrated fire alarm, smoke
and a new smoke alarm with smart features. management and communication system at the
The products provide users with real-time new Lusail International Circuit in Doha. The life
notification of smoke, carbon monoxide and safety system uses fiber cables to connect fire
IAQ issues through the Kidde app. control panels in 35 buildings to a single network
with centralized reporting for streamlined
Kidde Commercial introduced KESMobile, a emergency communication and control.
cloud-based productivity solution to manage
fire and life safety systems. It provides Norwegian Cruise Line Holdings extended its
real-time insights into fire system panels BluEdge Elite service agreement for Marioff
and events across multiple sites using a to provide preventive maintenance services
comprehensive dashboard that is accessible for water mist fire protection systems installed
remotely or on-site. The data informs system aboard 15 cruise ships. The five-year service
management resource planning and efficient agreement helps predict and optimize
service scheduling to streamline operations, maintenance costs while prioritizing the
optimize costs, minimize disruptions and meet safety of the fleet and maximizing uptime.
compliance reporting requirements. It also covers spare parts, on-call emergency
support and crew training.
Aritech launched a security platform that
integrates with new hardware and software, Extra Space Storage, the second-largest
legacy devices and third-party systems. The self-storage company in the United States,
panel connects to the cloud, allowing installers integrated Onity’s encrypted DirectKey mobile
to optimize configuration on-premises credentialing technology into its customer app
or remotely, and enabling fast incident and began using Onity’s new Passport locking
management in a cyber-secure environment. solution to digitize storage unit access. The
solution allows tenants to unlock self-storage
LenelS2 made its BlueDiamond mobile unit doors quickly and securely through a
credential technology available in Apple mobile app. Self-storage operators can
1
See page 69 for additional
information regarding Wallet to further enhance building security remotely manage access, monitor activity
non-GAAP measures. and convenience. Approved users can unlock and streamline operations.
10 Carrier 2023 Annual Report
Kidde launched a subscription
service through its home health
mobile app. Subscribers receive a
weekly report on indoor air quality
and thermal comfort to help them
take proactive, informed steps to
keep their homes healthy and safe.
Edwards launched ConnectedSafety+, a
software-as-a-service lifecycle solution
that optimizes the management of
commercial fire installations. The next-
generation system includes predictive
maintenance insights, real-time event
notifications, intelligent reporting and
a dashboard that enables managers to
view all locations remotely or on-site. The
insights help identify preventive actions
to optimize system functionality, lower
service and maintenance costs, minimize
disruptions and maintain code compliance.
Marioff secured a contract to
participate in the reconstruction
of the world-renowned Notre
Dame Cathedral in Paris following
a devastating structural fire. A
Marioff HI-FOG high-pressure water
mist fire protection system will be
installed inside the roof to protect
the framework. The system uses
water mist as the extinguishing agent,
making it a safer solution for people
and the environment. It fights fires
as effectively as traditional sprinklers
while using up to 90% less water,
minimizing potential water damage.
Carrier 2023 Annual Report 11
Carrier provides intelligent climate and
energy solutions and services for our
customers. We are committed to operational
excellence across our business.
Accelerating aftermarket growth through lifecycle solutions We have nearly 115,000 refrigeration units under Lynx
We deliver digitally enabled solutions to customers subscriptions, and our truck trailer business has more
across the entire product lifecycle. Our comprehensive than 130,000 units under BluEdge contracts. In our Fire
aftermarket offerings include remote monitoring and & Security segment, more than 260,000 systems are
diagnostics, predictive maintenance, spare parts, repairs, connected, providing insights and alerts.
modifications and upgrades, rentals and other cutting-edge
digital services. Building intelligent, connected ecosystems
We create digital solutions that leverage data-driven
For the third consecutive year, Carrier achieved double- insights and artificial intelligence (AI) to help customers
digit aftermarket growth in 2023. Our expanded Abound achieve their desired outcomes, while increasing our
and Lynx offerings accelerated recurring revenues while recurring revenues.
helping customers achieve their sustainability goals. Across
all business segments, insights from our connected devices Carrier expanded the capabilities and deployment of our
help increase energy efficiency, optimize performance and key digital platforms, Abound and Lynx. As we continue to
implement solutions before issues arise. We also grew our accelerate our go-to-market efforts for these platforms,
catalog of parts, services and connected solutions. we are activating the full strength of our global sales
network. Abound was also released on the Amazon Web
Our commercial HVAC business has nearly 75,000 chillers Services Marketplace, opening a new path to market for
under long-term BluEdge service contracts. Approximately our software.
29,000 Carrier chillers are connected, enabling real-time
monitoring and remote services from our global network of Internally, we continued to invest in Carrier IO, a single
command centers, engineers and data scientists. platform for connecting assets to the cloud. We released
a collection of plug-and-play services within the platform
that are designed to increase productivity and agility, while
accelerating product innovation.
John Mackirdy Ltd., a customer of
more than 20 years, enhanced its
existing fleet of Carrier temperature-
controlled trailers by installing Lynx
Fleet onto the units. The connected
solution continuously monitors
performance and automates key
processes to reduce fuel consumption
and greenhouse gas emissions,
lower the risk of cargo spoilage and
optimize performance.
12 Carrier 2023 Annual Report
We continued to reduce the complexity of our
enterprise resource planning landscape, enabling
more agile and cost-efficient internal operations.
In addition, we implemented digital initiatives to
optimize factory operations — from the procurement
of raw materials to tracking equipment in transit. The
digitalization of our factories aims to expedite time
to market, inform decision-making and streamline
overall manufacturing processes.
100+
New products
for the 9th consecutive year
Our new Generative AI Task Force is guiding the
company’s secure and responsible use of AI technology
to drive efficiency and innovation. By applying the
power of generative AI, Carrier is tackling a range of
high-impact use cases related to operational efficiency,
customer experience and more.
Creating visionary breakthroughs for a better tomorrow
Carrier develops intelligent climate and energy solutions
that support our commitment to achieving net-zero
14,000+
greenhouse gas emissions across our value chain by Active patents
2050. Our comprehensive offerings help customers and pending patent applications worldwide
reach and exceed their goals and stay ahead of
regulatory changes.
Our portfolio of digitally enabled lifecycle solutions Enhancing performance through operational excellence
expanded with offerings such as Abound Net Zero Carrier Excellence is our continuous improvement
Management, Lynx Logix, InteliSense and more. We framework that drives our world-class operations culture.
introduced more electric technologies and energy- It enhances customer experiences, enables growth
efficient products to reduce dependency on fossil fuels, and engages employees in problem-solving to achieve
and we increased the use of refrigerants with lower breakthrough performance results. In 2023, we deployed
global warming potential. the Carrier Excellence program to over 1,000 additional
employees and certified 14 more manufacturing sites.
We increased our annual investment in research and
development, investing more than $2 billion in the We achieved productivity savings through our strategic
last four years. In 2023, for the ninth year in a row, we sourcing actions. Carrier continues to build a more resilient
released more than 100 new products. We also have supply chain with increased leverage through dual sourcing
more than 14,000 active patents and pending patent critical components, localizing suppliers, establishing direct
applications worldwide combined. relationships with original equipment manufacturers and
redesigning components using a design-to-value approach.
Carrier innovates through collaboration. We opened We also implemented new digital tools that help our
four additional i3 Labs in the United States, India, China factories lower production costs, reduce inventories and
and Japan. The innovation incubators are creative improve efficiency.
spaces where we ignite the development of disruptive
technologies and empower our teams to test and Carrier focuses on product safety and quality, along with
develop solutions quickly, choosing speed to deliver health and safety excellence, throughout our facilities. Our
differentiated customer solutions. factories undergo an in-depth quality assessment to ensure
compliance with our standards, and our Lead with Safety
program includes nine safety commitments that empower
our employees to stop work if any task cannot be performed
safely. The program helps us uphold our 2030 goal to
maintain world-class safety metrics.
Carrier 2023 Annual Report 13
Sustainability
Carrier is developing visionary breakthroughs today to create a better tomorrow. Our solutions
help customers achieve their decarbonization targets. We also incorporate sustainable
practices throughout our global operations.
Recognition Carrier is leading the way to a more sustainable future.
Our 2030 environmental, social and governance (ESG) goals
underscore Carrier’s commitment to the things that matter
and to continuously challenge ourselves to think bigger and
Ranked No. 8 of to be better. Expanding on three decades of environmental
100 Most Sustainable Companies targets, our goals include measures to improve our planet,
Barron’s, 2023 our people and our communities through sustainable
solutions, investments and practices. We strive to be a
catalyst for positive and sustainable change as we innovate,
Named to empower our people and operate with integrity. That is
Carbon Clean200 The Carrier Way.
Corporate Knights and As You Sow, 2023
In addition, Carrier committed to setting near- and long-
term greenhouse gas emission reduction goals in line
Awarded a with the Science Based Targets initiative to limit global
Silver Medal warming to 1.5°C. In accordance with this initiative, we
EcoVadis, 2023 unveiled our road map to achieve net-zero greenhouse
gas emissions across our value chain by 2050. We also
joined the Corporate Coalition for Innovation & Technology
Achieved toward Net Zero, a business alliance dedicated to helping
Prime ESG Corporate Rating countries meet decarbonization and climate change goals.
ISS ESG, 2023
Our road map involves strategically transforming our
portfolio through electrification, integration and resilience.
Achieved By providing sustainable solutions, we are also advancing
ESG Leader Rating toward our goal of helping customers avoid more than
MSCI ESG Ratings, 2023 1 gigaton of greenhouse gas emissions by 2030. Our
products, services and digital capabilities help customers
meet their energy, carbon and food-waste reduction goals.
Among Energy-efficient heat pumps, all-electric refrigeration and
America’s Most Responsible Companies building solutions, refrigerants with lower global warming
Newsweek, 2023 potential and connected technologies are just a few of the
ways we are improving efficiencies in buildings, in homes
and across the cold chain.
Named an
ESG Industry Top-Rated Company
Sustainalytics, 2023 Learn about our goals and progress
at corporate.carrier.com/esg-report
14 Carrier 2023 Annual Report
Carrier’s Road Map
to Net Zero
3B tons of CO2
emissions
resulting from our products
without any actions
Gigaton goal In 2020, we set goals to help our
customers avoid more than 1 gigaton
& carbon of greenhouse gas emissions and
neutrality achieve carbon neutral operations.
But we have to be even bolder.
Road to meet 2050
Greenhouse gas emissions
net-zero climate targets
So we’re doing more.
We are establishing science-based targets in line
with limiting global warming to 1.5°C and
committed to net-zero GHG emissions
45% 1. Electrification &
energy efficiency
SBTi across our value chain by 2050 –
net-zero
path
and we have a road
map to get there.
35% 2. Digitally enabled &
energy solutions
15% 3. Refrigerants
5% 4. Sustainable
materials
2050
2020
2030
SBTi near-term absolute
2023
target percent reduction
We have invested more than $965 million in sustainable In support of our carbon neutrality goal, we are transitioning
research and design since 2020. Additionally, our global to cleaner energy sources. In Montilla, Spain, and Montluel,
venture capital group, Carrier Ventures, expanded its France, we entered contracts to install solar array systems
portfolio of strategic partnerships with high-growth at our commercial HVAC sites. The renewable energy
companies to accelerate the development of sustainable generated from the systems is expected to account
innovations and disruptive technologies for building and for approximately 33% and 17% of the annual electricity
cold chain net-zero solutions. consumption at the sites, respectively. In the United States,
we entered long-term contracts that will provide us with
We incorporate sustainable practices aimed at reducing renewable energy certificates to credit against 100% of our
greenhouse gas emissions, energy consumption, water annual U.S. electricity consumption.
withdrawal and waste to landfill. We are expanding the
use of high-efficiency equipment, refrigerants with lower We also achieved zero waste to landfill certification at
global warming potential, electric technologies and 11 additional manufacturing sites by transitioning to more
renewable energy. sustainable methods of waste management.
Carrier 2023 Annual Report 15
Our People & Culture
At Carrier, we strive to connect our people to As part of our activation activities, these talent and
leadership principles were embedded into our hiring,
our purpose, our culture and to each other. The
assessment, development and reward practices to drive
Carrier Way is our foundation, our north star. It consistency and enable the recruitment and retention
defines our vision, values and cultural behaviors of top talent, internal talent mobility and engagement.
We integrated our people leadership behaviors into
that allow us to create a workplace where we
Performance Connections, our performance management
work and win, together, and always with a focus program, and other development programs such as our
on delivering excellence, the right way. early career programs, new people leader training, and our
Elevate and Talent Possible leadership and high-potential
Carrier is a global employer of choice, focused on attracting, development programs.
developing and retaining world-class talent, and fostering
an inclusive culture rich in global diversity. We develop At Carrier, we take great care in listening to our employees,
and deploy best-in-class programs and practices, provide reflecting on their feedback and taking action. One of the
enriching career opportunities, listen to employee feedback ways we achieve this is by conducting our Pulse global
and always challenge ourselves to do better. engagement surveys three times a year, in local languages.
Our Engagement and Inclusion scores are above benchmark
In 2023, we introduced Leading People The Carrier Way, and have each improved by six points since we became an
an extension of The Carrier Way. It defines our Talent independent company in 2020.
Philosophy, our guiding principles for how people leaders
develop talent and build the best teams, and our Leader We also increased our focus on transparent, two-way
Success Model, which sets expectations for how people feedback by equipping people leaders and employees with
leaders lead others. Our goal is to build the very best teams a feedback model and training. We introduced additional
with great talent so that we can engage our teams, delight resources and dashboards to help people leaders have
our customers and grow the company. visibility to key people-related data to create action plans
for continuous improvement, and to track progress.
In support of our deep focus on talent, culture and being an employer of choice, Carrier has invested in a number
of people programs, philosophies and practices focused on development and career growth, engagement, flexible
work and employee well-being.
Pulse Survey Results 2023 Diversity Representation
Engagement Score 2023 2015
76 70 74 Global executive diversity 2 50% 27%
Global women executives 32% 20%
2023 2019 Benchmark 1
U.S. People of Color executives 33% 13%
Inclusion Score U.S. People of Color professionals 27% 18%
74 68 70 Global women and U.S. People of Color.
2
2023 2019 Benchmark 1
This global external benchmark is provided by Carrier’s third-party engagement
1
survey provider.
16 Carrier 2023 Annual Report
AV
IOR
S D EV
EL
O
OUR TALENT OUR LEADER
H
PM
BE
EN
PHILOSOPHY SUCCESS MODEL
T
BUILD
DIFFEREN T
BEST
ENCY
TEAMS
PA R
IAT
NS
N
RA
IO
T
PE
RFOR AN CE
M
Our guiding principles for how People Our expectations for how
Leaders develop talent and Build Best Teams. People Leaders lead others.
LEADING We value BEHAVIORS while achieving results.
We use the “what” and the “how” to assess performance and
Think “Outside In”
Seek market-leading solutions.
PEOPLE potential. We role model The Carrier Way behaviors and hold
each other accountable to do the same.
One Carrier always.
Know and amaze your customers.
THE We DEVELOP and help our people grow.
We support a culture of growth, valuing experiences and
Define the Future Boldly
CARRIER
cross-company movement to accelerate development.
Think big, take risks, inspire ideas.
Employees own their development, with support from their leader.
Make change comfortable.
WAY We are TRANSPARENT and give real-time feedback.
Try, learn, celebrate.
We discuss performance and potential, so all employees can
grow and succeed. Leaders and employees give and receive
two-way feedback candidly and constructively. Generate Energy
Connect people to
We PERFORM by setting stretch goals and holding purpose, empower.
Lead inclusively, ignite optimism.
individuals and teams accountable. Choose mission over self.
We coach for higher performance, raising the bar every year,
and take timely action.
We DIFFERENTIATE based on contributions. Own Outcomes
We recognize and reward both high performance and high Simplify, prioritize and focus.
potential through differentiated investment, development, Anticipate, adjust, clear the path.
compensation and career progression. Make it happen, together.
We further support our employees by providing global foster a culture of inclusion, allyship and sponsorship for
well-being offerings, including our worX flexible work all; and continue to be open to all employees. Our ERGs
program,3 Global Employee Assistance Program, led sessions on networking and career planning and held
online well-being training and an employee well-being grassroots events throughout the year. In Japan, with our
incentive program. recent acquisition of Toshiba Carrier Corp., we expanded our
efforts with the creation of an inclusion and diversity council.
Our inclusion philosophy, _belong, underscores the
importance of culture in a diverse workplace where everyone We maintain partnerships with several colleges and
can come to work — every day — and feel like they belong. universities to strengthen our talent pipeline, and we
To build upon that philosophy, in 2023, we introduced ally, increased student participation in our six-week leadership
outlining our principles for how employees can contribute program. Mentors from Carrier led workshops on inclusion
to building an inclusive culture, globally. Our ally principles and diversity, and career preparation.
include advocate, listen, learn and yield. We held our
annual companywide “Day of Understanding,” focusing our For the third consecutive year, Carrier was named a Best
discussion on allyship, and offered our employees inclusion Place to Work for LGBTQ+ Equality by the Human Rights
awareness training. Campaign Foundation in the United States and for the
second time in Mexico by Equidad Mexico. Both locations
Our global Employee Resource Groups (ERGs) include received a perfect score of 100 points on the Corporate
Carrier Black Alliance, Carrier Hispanics & Latinos Employee Equality Index, demonstrating our commitment to workplace
Engagement Resource Group, Military & Veterans, Pride, inclusion. Carrier was also named to the Forbes list of the
Women Empowerment at Carrier and United Carrier Asian World’s Best Employers.
Network. They reflect the diversity of Carrier’s workforce;
For those employees whose roles and responsibilities allow for remote work.
3
May be subject to location regulation or bargaining/consultation requirement.
Carrier 2023 Annual Report 17
Corporate Social Responsibility
Carrier supports organizations that promote We continued our long-term support of the Indian
Green Building Council Green Your School Programme.
the planet by advancing sustainable climate
Students submitted ideas to make their schools more
solutions, people by developing a skilled and environmentally responsible. The winning schools
diverse workforce, and the communities in received grant money to implement sustainability
projects and transform their spaces.
which we live, work and operate.
Carrier and the Urban Green Council are working toward
We supported civic, cultural, economic and social
decarbonizing buildings for more resilient communities.
welfare organizations around the world. We invested in
We supported an interactive public portal for New York
communities through cash and in-kind donations, and
City building data that tracks energy use to help the city
through the Carrier Matching Gifts Program, a dollar-for-
implement policies that promote energy efficiency and
dollar charitable donation program in the United States. We
reduce greenhouse gas emissions. Carrier also supported
exceeded our first-year volunteer program goal with nearly
the Green Professional Training certificate program, which
12,000 volunteer hours logged.
helps those who build, renovate and operate buildings
learn how to make them sustainable, resilient and healthy.
Carrier continued to support Habitat for Humanity through
volunteer efforts, financial contributions and product
We expanded our involvement with the global youth
donations from our Healthy Homes suite of indoor air
robotics organization For Inspiration and Recognition
quality and fire safety solutions. More than 650 employees
of Science and Technology (FIRST). The organization
participated in home builds across the United States as part
encourages students ages 4 to 18 to develop science,
of National Healthy Homes Month, the Carter Work Project,
technology, engineering and math skills for future
National Intern Day, a veteran build and more to help
careers. Carrier supported programs around the world,
increase access to healthy and safe indoor environments.
and employees mentored teams and volunteered
at competitions.
In Ghana, construction progressed on the new World Food
Programme Transport Training Centre, a collaboration
Our Kidde business continued to grow its award-winning
among Carrier, other leading companies and the
Cause For Alarm fire safety education initiative to support
United Nations World Food Programme. In 2023, the
communities that are at higher risk of residential fires.
center trained nearly 200 participants from across the
The program expanded beyond the United States to
humanitarian community and the private sector in West
Canada, Australia and the United Kingdom, educating
Africa via both in-person and virtual sessions to enhance
families about the importance of having working
cold chain transport and logistics capacities.
smoke alarms and practicing fire safety at home. Kidde
donated fire safety products to communities in need and
partnered with organizations around the world to raise
fire safety awareness.
Toshiba Carrier Corp. joined forces
with Habitat for Humanity Japan to
clean up the base of Mount Fuji. The
number of climbers and trail litter
increased in recent years, causing
concern for the local ecosystem.
Employee volunteers and students
from a local university chapter of
the organization picked up trash to
improve conditions and contribute to
the local community.
18 Carrier 2023 Annual Report
Financials
Cautionary Note Concerning Factors That May Affect Future Results 20
Management’s Discussion and Analysis 21
Report of Independent Registered Public Accounting Firm 32
Consolidated Statement of Operations 34
Consolidated Statement of Comprehensive Income (Loss) 35
Consolidated Balance Sheet 36
Consolidated Statement of Changes in Equity 37
Consolidated Statement of Cash Flows 38
Notes to the Consolidated Financial Statements 39
Comparison of Cumulative Total Return 68
The financial information included herein should be read in conjunction with the financial statements and
notes in our Annual Report on Form 10-K for calendar year 2023 filed with the United States Securities and
Exchange Commission (“SEC”) on February 6, 2024 (the “2023 Annual Report on Form 10-K”).
Carrier 2023 Annual Report 19
Cautionary Note •
•
New business and investment opportunities;
The outcome of legal proceedings, investigations and
Concerning Factors
other contingencies;
• The impact of pension plan assumptions on future cash
That May Afect
contributions and earnings;
• The impact of the negotiation of collective bargaining
agreements and labor disputes;
Future Results • The effect of changes in political conditions in the U.S. and other
countries in which Carrier and our businesses operate, including
the effect of changes in U.S. trade policies, on general market
conditions, global trade policies and currency exchange rates in
This Annual Report contains statements which, to the extent they
the near term and beyond;
are not statements of historical or present fact, constitute “forward-
• The effect of changes in tax, environmental, regulatory
looking statements” under the securities laws. From time to time, oral
(including among other things import/export) and other laws and
or written forward-looking statements may also be included in other
regulations in the U.S. and other countries in which we and our
information released to the public. These forward-looking statements
businesses operate;
are intended to provide management’s current expectations or
• The ability of Carrier to retain and hire key personnel;
plans for our future operating and financial performance, based
• The scope, nature, impact or timing of acquisition and
on assumptions currently believed to be valid. Forward-looking
divestiture activity, including among other things integration
statements can be identified by the use of words such as “believe,”
of acquired businesses into existing businesses and realization
“expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,”
of synergies and opportunities for growth and innovation and
“project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,”
incurrence of related costs;
“outlook,” “confident,” “scenario” and other words of similar meaning
• A determination by the U.S. Internal Revenue Service (“IRS”)
in connection with a discussion of future operating or financial
and other tax authorities that the Distribution or certain related
performance. Forward-looking statements may include, among
transactions should be treated as taxable transactions; and
other things, statements relating to future sales, earnings, cash flow,
• Risks associated with current and future indebtedness, as well as
results of operations, uses of cash, share repurchases, tax rates and
our ability to reduce indebtedness and the timing thereof.
other measures of financial performance or potential future plans,
strategies or transactions of Carrier, Carrier’s plans with respect to This Annual Report includes important information as to risks, uncertainties
our indebtedness and other statements that are not historical facts. and other factors that may cause actual results to differ materially from
All forward-looking statements involve risks, uncertainties and other those expressed or implied in the forward-looking statements. See the
factors that may cause actual results to differ materially from those Notes to the Consolidated Financial Statements in this Annual Report
expressed or implied in the forward-looking statements. For those under the heading “Note 23 – Commitments and Contingent Liabilities,”
statements, we claim the protection of the safe harbor for forward- the sections entitled “Management’s Discussion and Analysis of Financial
looking statements contained in the U.S. Private Securities Litigation Condition and Results of Operations” under the headings “Business
Reform Act of 1995. Such risks, uncertainties and other factors include, Overview,” “Results of Operations,” “Liquidity and Financial Condition,” and
without limitation: “Critical Accounting Estimates,” and the section entitled “Risk Factors.”
This Annual Report also includes important information as to these factors
• The effect of economic conditions in the industries and
in the “Business” section under the headings “General,” “Other Matters
markets in which Carrier and our businesses operate in the
Relating to Our Business as a Whole,” and in the “Legal Proceedings”
U.S. and globally and any changes therein, including financial
section. The forward-looking statements speak only as of the date of this
market conditions, inflationary cost pressures, fluctuations in
report or, in the case of any document incorporated by reference, the date
commodity prices, interest rates and foreign currency exchange
of that document. We undertake no obligation to publicly update or revise
rates, levels of end market demand in construction, the impact
any forward-looking statements, whether as a result of new information,
of weather conditions, pandemic health issues, natural disasters
future events or otherwise, except as required by applicable law. Additional
and the financial condition of our customers and suppliers;
information as to factors that may cause actual results to differ materially
• Challenges in the development, production, delivery, support,
from those expressed or implied in the forward-looking statements is
performance and realization of the anticipated benefits of
disclosed from time to time in our other filings with the United States
advanced technologies and new products and services;
Securities and Exchange Commission (“SEC”).
• Future levels of capital spending and research and development
spending; This Annual Report and our Quarterly Reports on Form 10-Q, Current
• Future availability of credit and factors that may affect such Reports on Form 8-K and amendments to those reports are available
availability, including credit market conditions and Carrier’s free of charge through the Investors section of our Internet website
capital structure and credit ratings; (http://www.corporate.carrier.com) under the heading “SEC Filings” as
• The timing and scope of future repurchases of Carrier’s common soon as reasonably practicable after these reports are electronically
stock, including market conditions and the level of other filed with, or furnished to, the SEC. In addition, the SEC maintains an
investing activities and uses of cash; Internet website (http://www.sec.gov) containing reports, proxy and
• Delays and disruption in the delivery of materials and services information statements, and other information regarding issuers that
from suppliers; file electronically with the SEC.
• Cost reduction efforts and restructuring costs and savings and
other consequences thereof;
20 Carrier 2023 Annual Report
Management’s Signifcant Events
Discussion and
Planned Porfolio Transformation
On April 25, 2023, we announced that we entered into a Share
Analysis
Purchase Agreement (the “Agreement”) to acquire the climate
solutions business (the “VCS Business”) of Viessmann Group
GmbH & Co. KG (“Viessmann”), a privately-held company. The
VCS Business develops intelligent, integrated and sustainable
Business Overview technologies, including heat pumps, boilers, photovoltaic systems,
home battery storage and digital solutions, primarily for residential
Business Summary customers in Europe. The acquisition was completed on January 2,
2024 for total consideration of $14.2 billion.
Carrier Global Corporation (“we” or “our”) is a global leader in
intelligent climate and energy solutions with a focus on providing On April 25, 2023, we announced plans to exit our Fire & Security
differentiated, digitally-enabled lifecycle solutions to our and Commercial Refrigeration businesses over the course of
customers. Our portfolio includes industry-leading brands such 2024. On December 7, 2023, we entered into a stock purchase
as Carrier, Toshiba, Automated Logic, Carrier Transicold, Kidde, agreement to sell our Fire and Security Access Solutions
Edwards and LenelS2 that offer innovative heating, ventilating business to Honeywell International Inc. for an enterprise value of
and air conditioning (“HVAC”), refrigeration, fire, security and approximately $4.95 billion. On December 12, 2023, we entered into
building automation technologies to help make the world safer a stock purchase agreement to sell our Commercial Refrigeration
and more comfortable. We also provide a broad array of related business (“CCR”) to Haier Group Corporation for an enterprise
building services, including audit, design, installation, system value of approximately $775 million. Both transactions are
integration, repair, maintenance and monitoring. Our operations expected to close 2024.
are classified into three segments: HVAC, Refrigeration and
Deconsolidation of Kidde-Fenwal, Inc.
Fire & Security.
On May 14, 2023, Kidde-Fenwal, Inc. (“KFI”), an indirect
Our worldwide operations are affected by global and regional wholly-owned subsidiary of ours, filed a petition for voluntary
industrial, economic and political factors and trends. These include reorganization under Chapter 11 of the United States Bankruptcy
the mega-trends of urbanization, climate change and increasing Code (“Chapter 11”) in the United States Bankruptcy Court for
requirements for food safety driven by the food needs of our the District of Delaware. KFI, an industrial fire detection and
growing global population and the rising standards of living in suppression business historically reported in our Fire & Security
emerging markets. We believe that our business segments are segment, has indicated that it intends to use the bankruptcy
well positioned to benefit from favorable secular trends, including process to explore strategic alternatives, including the sale of
these mega-trends and from the strength of our industry-leading KFI as a going concern. KFI has further stated that, during the
brands and track record of innovation. In addition, we regularly Chapter 11 process, KFI expects that there will be no significant
review our end markets to proactively identify trends and adapt our interruptions to its business operations. As of the petition date, KFI
strategies accordingly. was deconsolidated and its respective assets and liabilities were
derecognized from our Consolidated Financial Statements.
Our business is also affected by changes in the general level of
economic activity, such as changes in business and consumer Acquisition of Toshiba Carrier Corporation
spending, construction and shipping activity as well as short-term On February 6, 2022, we entered into a binding agreement
economic factors such as currency fluctuations, commodity to acquire a majority ownership interest in Toshiba Carrier
price volatility and supply disruptions. We continue to invest in Corporation (“TCC”), a variable refrigerant flow (“VRF”) and
our business, take pricing actions to mitigate supply chain and light commercial HVAC joint venture between Carrier and
inflationary pressures, develop new products and services in order Toshiba Corporation. TCC designs and manufactures flexible,
to remain competitive in our markets and use risk management energy-efficient and high-performance VRF and light commercial
strategies to mitigate various exposures. We believe that we have HVAC systems as well as commercial products, compressors
industry-leading global brands, which form the foundation of our and heat pumps. The acquisition included all of TCC’s advanced
business strategy. Coupled with our focus on growth, innovation research and development centers and global manufacturing
and operational efficiency, we expect to drive long-term future operations, product pipeline and the long-term use of Toshiba’s
growth and increased value for our shareowners. iconic brand. The acquisition was completed on August 1, 2022.
As a result, the assets, liabilities and results of operations of TCC
are consolidated in the accompanying Consolidated Financial
Statements as of the date of acquisition and reported within our
HVAC segment. Upon closing, Toshiba Corporation retained a
5% ownership interest in TCC.
Carrier 2023 Annual Report 21
Management’s Discussion and Analysis
Sale of Chubb Fire & Security Business A detailed discussion of the year ended December 31, 2022 compared
On July 26, 2021, we entered into a stock purchase agreement to with December 31, 2021 is not included herein and can be found in
sell our Chubb Fire & Security business (“Chubb”) to APi Group the Management’s Discussion and Analysis of Financial Condition and
Corporation (“APi”). Chubb, which was reported within our Fire Results of Operations section in the Company’s 2022 Annual Report,
& Security segment, delivered essential fire safety and security filed with the SEC on February 7, 2023, under the heading “Results of
solutions from design and installation to monitoring, service and Operations,” which is incorporated herein by reference.
maintenance across more than 17 countries around the globe.
On January 3, 2022, we completed the sale of Chubb (the “Chubb Year Ended December 31, 2023 Compared with Year Ended
Sale”) for net proceeds of $2.9 billion and recognized a gain on the December 31, 2022
sale of $1.1 billion during the year ended December 31, 2022.
The results of TCC’s operations are included in our consolidated
results since the acquisition date of August 1, 2022. Prior to the
Results of Operations acquisition, we previously accounted for our minority ownership
in TCC under the equity method of accounting and recognized
This discussion summarizes the significant factors affecting our our portion of earnings within Equity method investment in net
consolidated results of operations, financial condition and liquidity earnings as part of operating expenses. As a result, prior period
for the year ended December 31, 2023 compared with December 31, results may not be comparable to the current period.
2022. This discussion should be read in conjunction with Item 8, the
Consolidated Financial Statements and the accompanying Notes to The following represents our consolidated net sales and
the Consolidated Financial Statements in this Annual Report. operating results:
Period
(In millions) 2023 2022 Change % Change
Net sales $22,098 $20,421 $ 1,677 8%
Cost of products and services sold (15,715) (14,957) (758) 5%
Gross margin 6,383 5,464 919 17%
Operating expenses (4,087) (949) (3,138) 331%
Operating profit 2,296 4,515 (2,219) (49)%
Non-operating income (expense), net (212) (223) 11 (5)%
Income from operations before income taxes 2,084 4,292 (2,208) (51)%
Income tax expense (644) (708) 64 (9)%
Net income from operations 1,440 3,584 (2,144) (60)%
Less: Non-controlling interest in subsidiaries' earnings from operations 91 50 41 82%
Net income atributable to common shareowners $ 1,349 $ 3,534 $(2,185) (62)%
Net Sales due to lower volumes in commercial refrigeration and container
For the year ended December 31, 2023, Net sales was $22.1 billion, end-markets. Refer to “Segment Review” below for a discussion of
an 8% increase compared with the same period of 2022. The Net sales by segment.
components of the year-over-year change were as follows: On August 1, 2022, we acquired a majority ownership interest in
TCC, a VRF and light commercial HVAC joint venture between
2023
Carrier and Toshiba Corporation. The results of TCC have been
Organic / Operational 3% included in our Consolidated Financial Statements since the date
Acquisitions and divestitures, net 5% of acquisition. The transaction added 6% to Net sales during the
Total % change 8% year ended December 31, 2023 and is included in Acquisitions and
divestitures, net.
Organic sales for the year ended December 31, 2023 increased by As of May 14, 2023, we no longer controlled KFI as their activities
3% compared with the same period of 2022. The organic increase are subject to review and oversight by the bankruptcy court.
was primarily driven by our HVAC segment due to improved Therefore, KFI was deconsolidated and their respective assets
global end-markets in our Commercial HVAC business and and liabilities were derecognized from our Consolidated Financial
pricing improvements in our North America residential and light Statements. The deconsolidation had a 1% impact on Net sales
commercial business. In addition, our Fire & Security segment during the year ended December 31, 2023 and is included in
benefited from price improvements and volume growth in each Acquisitions and divestitures, net.
region. However, results in our Refrigeration segment decreased
22 Carrier 2023 Annual Report
Management’s Discussion and Analysis
Gross Margin Investments over which we do not exercise control, but have
For the year ended December 31, 2023, gross margin was significant influence, are accounted for using the equity method
$6.4 billion, a 17% increase compared with the same period of accounting. For the year ended December 31, 2023, Equity
of 2022. The components were as follows: method investment net earnings were $211 million, a 19% decrease
compared with the same period of 2022. The decrease was
(In millions) 2023 2022 primarily driven by the increase in our ownership interest in TCC on
Net sales $22,098 $20,421 August 1, 2022. As a result, TCC is no longer accounted for under
Cost of products and services sold (15,715) (14,957) the equity method of accounting since the date of acquisition. The
Gross margin $ 6,383 $ 5,464
decrease was partially offset by a $16 million benefit recognized
in connection with a favorable tax ruling at a minority owned joint
Percentage of net sales 28.9% 26.8%
venture. During the year ended December 31, 2022, pre-acquisition
equity earnings of TCC totaled $87 million which included a
Gross margin increased by $919 million compared with the year $27 million gain on the sale of two minority owned subsidiaries.
ended December 31, 2022. A main driver of the increase related
to ongoing customer demand, pricing improvements and our Other income (expense), net primarily includes the impact of gains
continued focus on productivity initiatives. In addition, operating and losses related to the sale of businesses or interests in our
results associated with TCC further benefited gross margin during equity method investments, foreign currency gains and losses on
the year. These amounts were partially offset by the higher cost of transactions that are denominated in a currency other than an entity’s
commodities and components used in our products and certain functional currency and hedging-related activities. In connection with
supply chain constraints. Although inflationary cost pressures have the proposed acquisition of the VCS Business, we recognized a $96
begun to moderate, they remain elevated and continue to impact the million loss during the year ended December 31, 2023 on the mark-to-
cost of products and services sold in each of our segments. Gross market valuation of our window forward contracts associated with the
margin as a percentage of Net sales increased by 210 basis points expected cash outflows of the Euro-denominated purchase price. In
compared with the same period of 2022. addition, we recognized a loss of $297 million on the deconsolidation
of KFI due to its Chapter 11 filing.
Operating Expenses In connection with the TCC acquisition, the carrying value of
For the year ended December 31, 2023, operating expenses, our previously held TCC equity investments were recognized at
including Equity method investment net earnings, was $4.1 billion, fair value at the date of acquisition. As a result, we recognized a
a 331% increase compared with the same period of 2022. $705 million non-cash gain associated with the increase in our
The components were as follows: ownership interest during the year ended December 31, 2022.
In addition, we completed the Chubb Sale and recognized a net
For the Year Ended December 31,
gain on the sale of $1.1 billion. Prior period results also included
(In millions) 2023 2022
a $22 million charge resulting from a litigation matter and a
Selling, general and administrative $(3,297) $(2,512) $7 million gain on the sale of our interest in a cost method
Research and development (617) (539) investment reported within our Refrigeration segment.
Equity method investment net earnings 211 262
Other income (expense), net (384) 1,840 Non-Operating Income (Expense), net
For the year ended December 31, 2023, Non-operating income
Operating expenses $(4,087) $ (949)
(expense), net was $212 million, a 5% decrease compared with the
Percentage of net sales 18.5% 4.6%
same period of 2022. The components were as follows:
For the year ended December 31, 2023, Selling, general and For the Year Ended December 31,
administrative expenses were $3.3 billion, a 31% increase compared (In millions) 2023 2022
with the same period of 2022. The increase is primarily due to Non-service pension benefit (expense) $ (1) $ (4)
higher compensation, commissions and other employee-related
Interest expense (362) (302)
costs during the current period. In addition, incremental selling,
Interest income 151 83
general and administrative expenses associated with TCC further
contributed to the increase. The current year also included Interest (expense) income, net (211) (219)
$220 million of acquisition and divestiture-related costs compared Non-operating income (expense), net $(212) $(223)
with $31 million during the year ended December 31, 2022.
Research and development costs relate to new product Non-operating income (expense), net includes the results from
development and new technology innovation. Due to the variable activities other than normal business operations such as interest
nature of program development schedules, year-over-year expense, interest income and the non-service components of
spending levels can fluctuate. In addition, we continue to invest pension and post-retirement obligations. Interest expense is affected
to prepare for future energy efficiency and refrigerant regulation by the amount of debt outstanding and the interest rates on that
changes and in digital controls technologies. debt. For the year ended December 31, 2023, interest expense was
Carrier 2023 Annual Report 23
Management’s Discussion and Analysis
$362 million, a 20% increase compared with the same period of 2022. bankruptcy and deconsolidation and $49 million of foreign tax
In connection with the proposed acquisition of the VCS Business, credit generated and utilized in 2023.
we entered into several financing arrangements and capitalized
The effective tax rate for the year ended December 31, 2022 was
$105 million of deferred financing costs during 2023. As a result, we
lower than our statutory U.S. federal income tax rate. The decrease
amortized $55 million of deferred financing costs in Interest expense,
was driven by a lower effective tax rate on the $705 million
of which $47 million related to our senior unsecured bridge term loan
non-cash gain resulting from the recognition of our previously
facility (the “Bridge Loan”). During the year ended December 31, 2022,
held TCC equity investments at fair value upon acquisition of
we completed tender offers to repurchase approximately $1.15 billion
TCC, a lower effective tax rate on the $1.1 billion Chubb gain and
aggregate principal of our 2.242% Notes due 2025 and 2.493% Notes
$45 million of foreign tax credits generated and utilized in 2022.
due 2027. Upon settlement, we wrote off $5 million of unamortized
deferred financing costs in Interest expense and recognized a net
Segment Review
gain of $33 million in Interest income.
We conduct our operations through three reportable segments:
Income Taxes • The HVAC segment provides products, controls, services
and solutions to meet the heating, cooling and ventilation
2023 2022 needs of residential and commercial customers while
Effective tax rate 30.9% 16.5% enhancing building performance, health, energy efficiency
and sustainability.
The effective tax rate for the year ended December 31, 2023 • The Refrigeration segment includes transport refrigeration
was higher than our statutory U.S. federal income tax rate. The and monitoring products, services and digital solutions for
increase was primarily driven by a net tax charge of $90 million trucks, trailers, shipping containers, intermodal and rail, as
relating to the re-organization and disentanglement of CCR and well as commercial refrigeration products.
certain Fire & Security industrial businesses in advance of the • The Fire & Security segment provides a wide range of
planned divestitures and a deferred tax charge of $65 million residential, commercial and industrial technologies designed
related to basis differences in certain companies presented as to help protect people and property.
held-for-sale. In addition, the effective tax rate was impacted
We determine our segments based on how our Chief Executive
by the recognition of a deferred tax liability for withholding tax
Officer, who is the Chief Operating Decision Maker (the “CODM”),
of $33 million on repatriated foreign earnings, non-deductible
allocates resources, assesses performance and makes operational
divestiture-related costs and a non-deductible loss of $96 million
decisions. The CODM allocates resources and evaluates the financial
on the mark-to-market valuation of the Company’s window
performance of each of our segments based on Net sales and
forward contracts associated with the expected cash outflows
Operating profit. Adjustments to reconcile segment reporting to the
of the Euro-denominated purchase price of the VCS Business.
consolidated results are included in Note 21 - Segment Financial Data.
The unfavorable impact of the above items is partially offset
by a $53 million tax benefit recorded from the announced KFI Summary performance for each of our segments is as follows:
Net Sales Operating Profit Operating Margin
(In millions) 2023 2022 2023 2022 2023 2022
HVAC $15,139 $13,408 $2,275 $2,610 15.0% 19.5%
Refrigeration 3,818 3,883 428 483 11.2% 12.4%
Fire & Security 3,633 3,570 209 1,630 5.8% 45.7%
Total segment $22,590 $20,861 $2,912 $4,723 12.9% 22.6%
HVAC Segment The organic increase in Net sales of 5% was driven by
For the year ended December 31, 2023, Net sales in our HVAC continued strong results in the segment. Increased sales
segment was $15.1 billion, a 13% increase compared with the same in our Commercial HVAC business (up 12%) benefited from
period of 2022. The components of the year-over-year change pricing improvements and ongoing customer demand in our
were as follows: end-markets. The business grew in all regions including Europe
and Asia as current economic conditions and inflationary cost
Net sales pressures improved compared with the prior year. Higher sales
Organic / Operational 5% in our North America residential and light commercial business
Foreign currency translation (1)% (up 1%) were primarily driven by pricing improvements and
Acquisitions and divestitures, net 9% improved mix associated with regulatory changes effective as
of the beginning of 2023. These amounts were partially offset
Total % change 13%
by lower volume in North America residential end-markets.
24 Carrier 2023 Annual Report
Management’s Discussion and Analysis
Results in our Global Comfort Solutions business (down 2%) Organic Net sales decreased 2% compared to the prior year as
were primarily driven by lower demand in certain European the segment experienced challenges in certain end-markets
end-markets. during the year. Results for Commercial refrigeration decreased
(down 14%) compared with the prior year, primarily driven by lower
On August 1, 2022, we acquired a majority ownership interest in TCC,
volumes in Europe as economic conditions and inflationary cost
a VRF and light commercial HVAC joint venture between Carrier and
pressures impacted end-market demand. In addition, Asia results
Toshiba Corporation. The results of TCC have been included in our
were impacted by reduced end-market demand in China. Transport
Consolidated Financial Statements since the date of acquisition. The
refrigeration results increased (up 3%) compared to the prior year
transaction added 9% to Net sales for the year ended December 31,
as pricing improvements and strong end-market demand in all
2023 and is included in Acquisitions and divestitures, net.
regions were partially offset by continued weakness in container
For the year ended December 31, 2023, Operating profit in our end-markets.
HVAC segment was $2.3 billion, a 13% decrease compared with
For the year ended December 31, 2023, Operating profit in
the same period of 2022. The components of the year-over-year
our Refrigeration segment was $428 million, an 11% decrease
change were as follows:
compared with the same period of 2022. The components of the
Operating profit year-over-year change were as follows:
Organic / Operational 12%
Operating profit
Acquisitions and divestitures, net 6%
Organic / Operational (14)%
Amortization of acquired intangibles (4)%
Foreign currency translation 1%
Restructuring (1)%
Restructuring (3)%
Other (26)%
Other 5%
Total % change (13)%
Total % change (11)%
The operational profit increase of 12% was primarily attributable
to pricing improvements and ongoing customer demand
The decrease in operational profit of 14% was primarily driven
in certain end-markets compared with the prior year. These
by lower volume in certain end-markets compared with
benefits more than offset the higher cost for commodities and
the prior year. In addition, the higher costs of commodities
components used in our products. Lower earnings from equity
and components used in our products further impacted
method investments impacted operational profit due to the
segment results. These amounts were partially offset by
increase in our ownership interest in TCC on August 1, 2022. As a
pricing improvements and favorable productivity initiatives.
result, TCC is no longer accounted for under the equity method
Inflationary cost pressures have begun to moderate but
of accounting since the date of acquisition. Inflationary cost
continue to impact our operating profit. Amounts reported in
pressures have begun to moderate but continue to impact our
Other represent a $24 million gain on the sale of a business
operating profit.
within Transport refrigeration.
Acquisitions and divestitures, net primarily related to the results of
operations associated with the acquisition of TCC. The transaction Fire & Security Segment
added 6% to Operating profit during the year ended December 31, For the year ended December 31, 2023, Net sales in our Fire &
2023. In connection with the TCC acquisition, the carrying value Security segment was $3.6 billion, a 2% increase compared with
of our previously held TCC equity investments were recognized the same period of 2022. The components of the year-over-year
at fair value at the date of acquisition. As a result, we recognized change were as follows:
a $705 million non-cash gain associated with the increase in our
ownership interest in Other. Net sales
Organic / Operational 6%
Refrigeration Segment Foreign currency translation (1)%
For the year ended December 31, 2023, Net sales in our KFI deconsolidation (3)%
Refrigeration segment was $3.8 billion, a 2% decrease compared
Total % change 2%
with the same period of 2022. The components of the year-over-
year change were as follows:
The organic increase in Net sales of 6% was primarily driven
Net sales
by pricing improvements and volume growth compared with
Organic / Operational (2)% the prior year. Sales grew in all three regions including strong
Foreign currency translation 1% commercial results in the Americas. Growth in Europe moderated
Acquisitions and divestitures, net (1)% as economic conditions and inflationary cost pressures
Total % change (2)% impacted end-market demand. Results in Asia normalized after
Carrier 2023 Annual Report 25
Management’s Discussion and Analysis
a strong COVID-19 related recovery. Global industrial sales our foreign subsidiaries. We manage our worldwide cash
benefited segment results due to pricing improvements and requirements by reviewing available funds and the cost
strong demand. The segment was impacted by ongoing supply effectiveness with which we can access funds held by foreign
chain constraints for certain components used in our products. subsidiaries. On occasion, we are required to maintain cash
deposits in connection with contractual obligations related
For the year ended December 31, 2023, Operating profit in our
to acquisitions or divestitures or other legal obligations. As of
Fire & Security segment was $209 million, an 87% decrease
December 31, 2023 and 2022, the amount of such restricted
compared with the same period of 2022. The components of the
cash was $2 million and $7 million, respectively.
year-over-year change were as follows:
We continue to actively manage and strengthen our business
Operating profit portfolio to meet the current and future needs of our customers.
Organic / Operational 2% This is accomplished through research and development
Acquisitions and divestitures, net (1)% activities with a focus on new product development and new
Restructuring (1)% technology innovation as well as sustaining activities with a
focus on improving existing products and reducing production
KFI deconsolidation (18)%
costs. We also pursue potential acquisitions to complement
Chubb gain (68)%
existing products and services to enhance our product portfolio.
Other (1)% In addition, we routinely conduct discussions, evaluate targets
Total % change (87)% and enter into agreements regarding possible acquisitions,
divestitures, joint ventures and equity investments to manage our
business portfolio.
The operational profit increase of 2% was primarily driven by
pricing improvements, volume growth and lower freight and We believe that our available cash and operating cash flows will be
logistics costs compared to the prior year. These amounts sufficient to meet our future operating cash needs. Our committed
were partially offset by the higher costs of commodities credit facilities and access to the debt and equity markets
and components used in our products. In addition, higher provide additional sources of short-term and long-term capital to
inventory-related reserves resulting from supply chain fund current operations, debt maturities and future investment
challenges further impacted segment results. Inflationary opportunities. Although we believe that the arrangements currently
cost pressures have moderated, but continue to impact our in place permit us to finance our operations on acceptable terms
operating profit. and conditions, our access to and the availability of financing on
acceptable terms and conditions in the future will be impacted
As of May 14, 2023, we no longer control KFI as their activities are
by many factors, including: (1) our credit ratings or absence of
subject to review and oversight by the bankruptcy court. Therefore,
credit ratings; (2) the liquidity of the overall capital markets; (3) the
KFI was deconsolidated and their respective assets and liabilities
state of the economy; and (4) the restrictions under our debt
were derecognized from our Consolidated Financial Statements.
agreements. There can be no assurance that we will be able to
As a result, we recognized a loss on deconsolidation of $297 million
obtain additional financing on terms favorable to us, if at all.
during the year ended December 31, 2023. In addition, we incurred
divestiture-related costs reported within Other. During the twelve The following table contains several key measures of our financial
months ended December 31, 2022, we completed the Chubb Sale condition and liquidity:
and recognized a net gain on the sale of $1.1 billion
As of December 31,
(In millions) 2023 2022
Liquidity and Financial Condition
Cash and cash equivalents $10,015 $ 3,520
We assess liquidity in terms of our ability to generate adequate Total debt $14,293 $ 8,842
amounts of cash necessary to fund our current and future cash Net debt (total debt less cash and $ 4,278 $ 5,322
requirements to support our business and strategic initiatives. In cash equivalents)
doing so, we review and analyze our cash on hand, working capital, Total equity $ 9,005 $ 8,076
debt service requirements and capital expenditures. We rely on Total capitalization (total debt plus $23,298 $16,918
operating cash flows as our primary source of liquidity. In addition, total equity)
we have access to other sources of capital to finance our strategic Net capitalization (total debt plus total $13,283 $13,398
initiatives and fund growth. equity less cash and cash equivalents)
Total debt to total capitalization 61% 52%
As of December 31, 2023, we had Cash and cash equivalents
Net debt to net capitalization 32% 40%
of $10.0 billion, of which approximately 48% was held by
26 Carrier 2023 Annual Report
Management’s Discussion and Analysis
Acquisition of Viessmann Scheduled maturities of long-term debt, excluding amortization of
discount, are as follows:
On April 25, 2023, we announced that we entered into an Agreement
to acquire the VCS Business. Under the terms of the Agreement, (In millions)
20% of the purchase price was to be paid in Carrier common stock,
2024 $ 51
issued directly to Viessmann and subject to long-term lock-up
2025 $3,053
provisions and 80% was to be paid in cash. Simultaneously, we
entered into commitment letters with JPMorgan Chase Bank, 2026 $ 4
N.A., BofA Securities, Inc. and Bank of America, N.A. to provide a 2027 $1,245
€8.2 billion Bridge Loan to fund a portion of the Euro-denominated 2028 $ 832
purchase price. Thereafter $9,191
On May 19, 2023, we entered into a 364-day, $500 million, senior
unsecured revolving credit agreement with JPMorgan Chase
The following table presents our credit ratings and outlook as of
Bank, N.A., as administrative agent and certain other lenders (the
December 31, 2023:
“Revolver”). In addition, we entered into a senior unsecured delayed
draw term loan credit agreement with JPMorgan Chase Bank, N.A., Long-term Short-term
as administrative agent and certain other lenders that permits Rating Agency Rating (1) Rating Outlook (2)
aggregate borrowings of up to €2.3 billion (the “Delayed Draw S&P BBB A2 Positive
Facility”). Upon entering into the Delayed Draw Facility, the aggregate Moody's Baa3 P3 Positive
principal amount of the Bridge Loan was reduced by €2.3 billion. Fitch Ratings BBB F3 Stable
In November 30, 2023, we issued $3.0 billion principal amount of
(1)
The long-term rating for S&P was affirmed on May 14, 2021, and for Moody’s on
USD-denominated notes (“USD Notes”) and €2.35 billion principal
March 30, 2022. Fitch’s long-term rating was updated in December 2023.
amount of Euro-denominated notes (“Euro Notes”). Upon issuance, (2)
S&P revised its outlook to positive from stable in December 2023.
the aggregate principal amount of the Bridge Loan was reduced by (3)
Moody’s Investors Service revised its outlook to positive from stable on
€5.4 billion. February 28, 2023.
On January 2, 2024, we completed the acquisition of the VCS
Business for $14.2 billion. The cash portion of the purchase price was Porfolio Transformation
funded through cash on hand, proceeds from the USD Notes and
On April 25, 2023, we announced plans to exit our Fire &
the Euro Notes and borrowings under the Delayed Draw Facility and
Security and Commercial Refrigeration businesses over the
a 60-day senior unsecured bridge term loan. In addition, proceeds
course of 2024. On December 7, 2023, we entered into a
from the Revolver became available upon closing.
stock purchase agreement to sell our Fire & Security Access
Solutions business to Honeywell International Inc. for an
Borrowings and Lines of Credit
enterprise value of approximately $4.95 billion. On December 12,
We maintain a $2.0 billion unsecured, unsubordinated commercial 2023, we entered into a stock purchase agreement to sell
paper program which we can use for general corporate purposes, CCR to Haier Group Corporation for an enterprise value of
including the funding of working capital and potential acquisitions. approximately $775 million. Both transactions are expected to
In addition, we maintain a $2.0 billion revolving credit agreement close 2024.
with various banks (the “Revolving Credit Facility”) that matures in
May 2028 which supports our commercial paper borrowing program Share Repurchase Program
and can be used for general corporate purposes. A ratings-based
We may purchase our outstanding common stock from time
commitment fee is charged on unused commitments. As of
to time subject to market conditions and at our discretion.
December 31, 2023, we had no borrowings outstanding under our
Repurchases occur in the open market or through one or more
commercial paper program or our Revolving Credit Facility.
other public or private transactions pursuant to plans complying
Our short-term obligations primarily consist of current maturities with Rules 10b5-1 and 10b-18 under the Exchange Act. Since
of long-term debt. Our long-term obligations primarily consist the initial authorization in February 2021, the Company’s Board
of long-term notes with maturity dates ranging between 2025 of Directors authorized the repurchase of up to $4.1 billion of
and 2054. Interest payments related to long-term Notes are our outstanding common stock. As of December 31, 2023, the
expected to approximate $507 million per year, reflecting Company repurchased 43.5 million shares of common stock
an approximate weighted-average interest rate of 3.8%. Any for an aggregate purchase price of $2.0 billion, which includes
borrowings from the Revolving Credit Facility are subject to shares repurchased under an accelerated share repurchase
variable interest rates. See Note 7 - Borrowings and Lines of agreement. As a result, the Company has approximately
Credit in the accompanying Notes to the Consolidated Financial $2.1 billion remaining under the current authorization at
Statements for additional information regarding the terms of our December 31, 2023. Upon announcement of the proposed
long-term debt obligations.
Carrier 2023 Annual Report 27
Management’s Discussion and Analysis
acquisition of the VCS Business, the Company temporarily provided by investing activities was $1.7 billion. The primary driver
paused its share repurchase program in order to advance of the inflow related to the net proceeds from the Chubb Sale.
its capital allocation strategy. As a result, there is no share This amount was partially offset by the acquisition of TCC and
repurchase activity to report for the fourth quarter of 2023. several other businesses and minority-owned businesses, which
totaled $506 million, net of cash acquired and $353 million of
Dividends capital expenditures.
We paid dividends on our common stock of $0.74 per share Cash flows from financing activities primarily represent inflows
during the year ended December 31, 2023, totaling $620 million. and outflows associated with equity or borrowings. Primary
On December 6, 2023, the Board of Directors declared a dividend activities include debt transactions, paying dividends to
of $0.19 per share payable on February 9, 2024 to shareowners of shareowners and the repurchase of our common stock. During
record at the close of business on December 21, 2023. the year ended December 31, 2023 net cash provided by financing
activities was $4.6 billion. The primary driver of the inflow related
Discussion of Cash Flows to the issuance of the USD Notes and the Euro Notes. The inflow
was partially offset by the payment of $620 million in dividends
For the Years Ended December 31, to our common shareowners and deferred financing costs. In
(In millions) 2023 2022 addition, we paid $62 million to repurchase shares of our common
Cash provided by (used in): stock. During the year ended December 31, 2022 net cash used
Operating activities $2,607 $1,743 in financing activities was $2.9 billion. The primary driver of the
outflow related to the payment of $1.4 billion to repurchase
Investing activities (660) 1,745
shares of our common stock. In addition, we settled our tender
Financing activities 4,612 (2,931)
offers for $1.15 billion and paid $509 million in dividends to our
Effect of foreign exchange rate changes 88 (56) common shareowners.
on cash and cash equivalents
Net increase (decrease) in cash and cash $6,647 $ 501 Summary of Other Sources and Uses of Cash
equivalents and restricted cash
Rapid changes in legislation, regulations and government policies,
including with respect to regulations intended to combat climate
Cash flows from operating activities primarily represent inflows
change, affect our operations and business in the countries,
and outflows associated with our operations. Primary activities
regions and localities in which we operate and sell our products.
include net income from operations adjusted for non-cash
We are committed to comply with these regulations and to
transactions, working capital changes and changes in other
environmental stewardship. As a result, we have set goals to invest
assets and liabilities. We define working capital as the assets
over $2 billion by 2030 to develop healthy, safe, sustainable and
and liabilities, other than cash, generated through our primary
intelligent buildings and cold chain solutions that incorporate
operating activities. The year-over-year increase in net cash
sustainable design principles and reduce lifecycle impacts. In
provided by operating activities was primarily driven by a
addition, to reach our goal to achieve carbon neutrality in our
reduction in working capital balances. Improved inventory
operations by 2030, we expect to incur capital expenditures
management and higher accounts payable balances more that
for climate-related projects including upgrading our facilities,
offset an increase in our accounts receivable balances. In addition,
equipment and controls to optimize energy efficiency, transition
Accounts payable and accrued liabilities included a $96 million
our energy consumption from a dependency on fossil fuels to
mark-to-market valuation adjustment on our window forward
renewable energy and expanding the electrification of our fleet
contracts associated with the Euro-denominated purchase price
vehicles. See section entitled Environmental Goals under the
of the VCS Business. Prior year working capital balances were
headings “Other Matters Relating to Our Business as a Whole” for
higher due to higher safety stock and supply chain constraints.
additional information.
Cash flows from investing activities primarily represent inflows
We also have obligations related to environmental and asbestos
and outflows associated with long-term assets. Primary activities
matters, pension and post-retirement benefits and taxes. See
include capital expenditures, acquisitions, divestitures and
Note 10 - Employee Benefit Plans, Note 17 - Income Taxes,
proceeds from the sale of fixed assets. During the year ended
and Note 23 - Commitments and Contingent Liabilities in the
December 31, 2023, net cash used in investing activities was
accompanying Notes to the Consolidated Financial Statements in
$660 million. The primary drivers of the outflow related to
this Annual Report for additional information.
$469 million of capital expenditures and $134 million related
to the deconsolidation of KFI. In addition, we settled working
capital and other transaction-related items associated with the
Critical Accounting Estimates
acquisition of TCC and invested in several businesses. These
Our financial statements are prepared in accordance with
amounts totaled $84 million, net of cash acquired and were
accounting principles generally accepted in the United States.
partially offset by the proceeds from the sale of a business during
The preparation of financial statements in conformity with those
the period. During the year ended December 31, 2022, net cash
28 Carrier 2023 Annual Report
Management’s Discussion and Analysis
accounting principles requires management to use judgement customer. Control is obtained when a customer has the ability
in making estimates and assumptions based on the relevant to direct the use of and obtain substantially all of the remaining
information available at the end of each period. These estimates benefits from that good or service. A significant portion of our
and assumptions have a significant effect on reported amounts performance obligations are recognized at a point-in-time
of assets, liabilities, sales and expenses as well as the disclosure when control of the product transfers to the customer, which
of contingent assets and liabilities because they result primarily is generally the time of shipment. The remaining portion of our
from the need to make estimates and assumptions on matters performance obligations are recognized over time as the customer
that are inherently uncertain. Actual results could differ from simultaneously obtains control as we perform work under a
management’s estimates. contract, or if the product being produced for the customer has no
alternative use and we have a contractual right to payment.
Goodwill and Indefnite-Lived Intangible Assets
A performance obligation is a distinct good, service or a
In accordance with the Financial Accounting Standards Board bundle of goods and services promised in a contract. Some
(“FASB”) Accounting Standards Codification (“ASC”) 350, of our contracts with customers contain a single performance
Intangibles - Goodwill and Other (“ASC 350”), goodwill and other obligation, while others contain multiple performance
indefinite-lived intangible assets are tested and reviewed annually obligations most commonly when a contract spans multiple
for impairment or whenever there is a material change in events phases of a product life-cycle such as production, installation,
or circumstances that indicate that the fair value of the asset is maintenance and support. We identify performance obligations
more likely than not less than the carrying amount of the asset. We at the inception of a contract and allocate the transaction price
test our reporting units and indefinite-lived intangible assets for to each distinct performance obligation. Revenue is recognized
impairment annually as of the first day of our third quarter, or more when or as the performance obligation is satisfied. When there
frequently if events or circumstances occur. are multiple performance obligations within a contract, we
allocate the transaction price to each performance obligation
ASC 350 provides entities with an option to perform a qualitative
based on its relative stand-alone selling price.
assessment (commonly referred to as “step zero”) to determine
whether a quantitative analysis for impairment is necessary. In We primarily generate revenue from the sale of products to
performing step zero for our impairment test, we are required to customers and recognize revenue at a point in time when control
make assumptions and judgments, including but not limited to transfers to the customer. Transfer of control is generally based
the following: the evaluation of macroeconomic conditions as on the shipping terms of the contract. In addition, we recognize
related to our business, industry and market trends, and the overall revenue on an over-time basis on installation and service
future financial performance of our reporting units and future contracts. For over-time performance obligations requiring the
opportunities in the markets in which they operate. If impairment installation of equipment, revenue is recognized using costs
indicators are present after performing step zero, we would incurred to date relative to total estimated costs at completion
perform a quantitative impairment analysis to estimate fair value. to measure progress. Incurred costs represent work performed,
which correspond with and best depict transfer of control to
For our 2023 goodwill and indefinite-lived intangible assets
the customer. Contract costs include direct costs such as labor,
impairment tests, we elected to perform qualitative step zero
materials and subcontractors’ costs and, where applicable,
assessments to determine if it was more likely than not that the
indirect costs.
fair values of our reporting units and indefinite-lived intangible
assets were below carrying value. We considered macroeconomic The transaction price allocated to performance obligations reflects
factors including global economic growth, general macroeconomic our expectations about the consideration we will be entitled to
trends for the markets in which our reporting units operate and receive from a customer. We include variable consideration in the
where the intangible assets are utilized and the forecasted growth estimated transaction price when there is a basis to reasonably
of the global industrial products industry. In addition to these estimate the amount and when it is probable that a significant
macroeconomic factors, among other things, we considered the reversal of revenue recognized would not occur when the
reporting units’ current results and forecasts, changes in the nature uncertainty associated with variable consideration is subsequently
of each business, any significant legal, regulatory, contractual, resolved. In addition, we customarily offer our customers incentives
political or other business climate factors, changes in the industry to purchase products to ensure an adequate supply of our
and competitive environment, changes in the composition or products in distribution channels. The principal incentive programs
carrying amount of net assets and any intention to sell or dispose provide reimbursements to distributors for offering promotional
of a reporting unit or cease the use of any indefinite-lived intangible pricing for products. We account for estimated incentive payments
assets. Based upon our qualitative analysis, we determined that our as a reduction in sales at the time a sale is recognized.
goodwill and indefinite-lived intangible assets were not impaired.
Income Taxes
Revenue Recognition from Contracts with Customers
We account for income taxes in accordance with ASC 740,
Revenue is recognized when control of a good or service promised Income Taxes (“ASC 740”). Deferred tax assets and liabilities
in a contract (i.e., performance obligation) is transferred to a are determined based on temporary differences between
Carrier 2023 Annual Report 29
Management’s Discussion and Analysis
financial reporting and tax bases of assets and liabilities, Increase in Decrease in
applying enacted tax rates expected to be in effect for the year Discount Rate Discount Rate
(In millions) of 25 bps of 25 bps
in which the differences are expected to reverse. We recognize
future tax benefits to the extent that realizing these benefits is Projected benefit obligation $(14) $14
considered in our judgment to be more likely than not. For those Net periodic pension (benefit) cost $ — $ —
jurisdictions where the expiration date of tax carryforwards
or the projected operating results indicate that realization
is not likely, a valuation allowance is provided. We review the Net periodic pension (benefit) cost is also sensitive to changes in
realizability of our deferred tax asset valuation allowances on a the expected return on plan assets. An increase or decrease of
quarterly basis, or whenever events or changes in circumstances 25 basis points in the expected return on plan assets would have
indicate that a review is required and will adjust our estimate decreased or increased 2023 pension expense by approximately
if significant events so dictate. To the extent that the ultimate $1 million.
results differ from our original or adjusted estimates, the effect
will be recorded in the provision for income taxes in the period Contingent Liabilities
that the matter is finally resolved. We are involved in various litigation, claims and administrative
In the ordinary course of business, there is inherent uncertainty proceedings, including those related to environmental
in quantifying our income tax positions. We assess our income (including asbestos) and legal matters. In accordance with ASC
tax positions and record tax benefits for all years subject to 450, Contingencies (“ASC 450”), we record accruals for loss
examination based upon management’s evaluation of the facts, contingencies when it is probable that a liability will be incurred
circumstances and information available at the reporting date. and the amount of the loss can be reasonably estimated. These
For those tax positions where it is more likely than not that a tax accruals are generally based upon a range of possible outcomes.
benefit will be sustained, we have recorded the largest amount If no amount within the range is a better estimate than any other,
of tax benefit with a greater than 50% likelihood of being realized we accrue the minimum amount. In addition, these estimates
upon ultimate settlement with a taxing authority that has full are reviewed periodically and adjusted to reflect additional
knowledge of all relevant information. For those income tax information when it becomes available. We are unable to predict
positions where it is not more likely than not that a tax benefit the final outcome of these matters based on the information
will be sustained, no tax benefit has been recognized in the currently available. However, we do not believe that the resolution
Consolidated Financial Statements. of any of these matters will have a material adverse effect upon
our competitive position, results of operations, cash flows or
Employee Beneft Plans financial condition.
We provide a range of benefit plans to eligible current and former As described in Note 23 – Commitments and Contingent Liabilities
employees. We account for our benefits plans in accordance in the accompanying Notes to the Consolidated Financial
with ASC 715, Compensation – Retirement Benefits (“ASC 715”), Statements in this Annual Report, contractual, regulatory and
which requires balance sheet recognition of the overfunded or other matters, including asbestos claims, may arise in the ordinary
underfunded status of pension plans. The determination of the course of business that subject us to claims or litigation. We have
amounts associated with these benefits is performed by actuaries recorded reserves in the consolidated financial statements related
and dependent on various actuarial assumptions including to these matters, which are developed using input derived from
discount rates, expected return on plan assets, compensation actuarial estimates and historical and anticipated experience
increases, mortality and health care cost trends. Actual results may depending on the nature of the reserve, and in certain instances in
differ from the actuarial assumptions and are generally recorded consultation with legal counsel, internal and external consultants
in Accumulated other comprehensive income (loss) and amortized and engineers. Subject to the uncertainties inherent in estimating
into Net income from operations over future periods. We review future costs for these types of liabilities, we believe our estimated
our actuarial assumptions at each measurement date and make reserves are reasonable and do not believe the final determination
modifications to the assumptions based on current rates and of the liabilities with respect to these matters would have a
trends, if appropriate. material adverse effect upon our competitive position, results of
operations, cash flows or financial condition. See the “Risk Factors”
A change in any of these assumptions would have an effect on section in this Annual Report for additional information.
net periodic pension and post-retirement benefit costs reported
in the Consolidated Financial Statements. The following table Recent Accounting Pronouncements
summarizes the estimated sensitivity of our 2023 projected benefit
obligation and net periodic pension (benefit) cost to a 25 basis See Note 3 – Summary of Significant Accounting Policies
point change in the discount rate: in the accompanying Notes to the Consolidated Financial
Statements in this Annual Report for a discussion of recent
accounting pronouncements and their effect on our
financial statements.
30 Carrier 2023 Annual Report
Management’s Discussion and Analysis
Market for Registrant’s Common Equity, In connection with the acquisition of the VCS Business, 80% of the
Euro-denominated purchase price was paid in cash to Viessmann
Related Shareowner Maters and Issuer
on January 2, 2024. As a result, the purchase price was exposed to
Purchases of Equity Securities exchange rate movements in relation to our reporting currency,
the U.S. dollar. To mitigate the foreign currency risk of the cash
The Company’s common stock is listed on the NYSE under the outflow, we entered into window forward contracts. Changes in
ticker symbol “CARR.” As of December 31, 2023, the approximate the fair value of the window forward contracts are reported in
number of common stock shareowners of record was 21,605. Other income (expense), net in the accompanying Consolidated
Statement of Operations.
Quantitative and Qualitative Disclosures
In connection with the TCC acquisition, we entered into cross
about Market Risk currency swaps and the Japanese Term Loan Facility to fund
the Yen-denominated purchase price. We designated the cross
Market Risk and Risk Management currency swaps and the Japanese Term Loan Facility as a hedge of
We are exposed to fluctuations in foreign currency exchange our investment in certain subsidiaries whose functional currency is
rates, interest rates and commodity prices which could impact the Japanese Yen in order to manage foreign currency translation
our results of operations and financial condition. There has been risk. As a result, changes in the fair value of the cross currency
no significant change in our exposure to market risk for the year swaps and the carrying value of the Japanese Term Loan Facility
ended December 31, 2023. associated with foreign exchange rate movements are recorded
in Equity in the Consolidated Balance Sheet. To the extent that any
Foreign Currency Exposures. We have operations throughout hedge is not fully effective at offsetting changes in the underlying
the world that manufacture and sell products in various hedged item, there could be a net earnings impact.
international markets. As a result, we are exposed to exchange
rate movements in relation to our reporting currency, the Commodity Price Exposures. We are exposed to volatility in the
U.S. dollar. Many of our non-U.S. operations have a functional prices of commodities used in some of our products and when
currency other than the U.S. dollar. Therefore, our reported appropriate, we use fixed price contracts to manage this exposure.
results will be higher or lower depending on the weakening or In addition, we are exposed to fuel costs to ship our products and
strengthening of the U.S. dollar against the respective foreign materials. We do not have commodity hedge contracts in place at
currency. We actively manage material currency exposures that December 31, 2023.
are associated with purchases and sales and other assets and Interest Rate Exposures. Substantially all of our long-term debt
liabilities at the legal entity level; however, we do not hedge has fixed interest rates. As a result, any fluctuation in market
currency translation risk. interest rates is not expected to have a material effect on our
results of operations.
Carrier 2023 Annual Report 31
Repor of We conducted our audits in accordance with the standards
of the PCAOB. Those standards require that we plan and
Independent
perform the audits to obtain reasonable assurance about
whether the consolidated financial statements are free of
Registered Public
material misstatement, whether due to error or fraud, and
whether effective internal control over financial reporting was
Accounting Firm
maintained in all material respects.
Our audits of the consolidated financial statements included
performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether
To the Board of Directors and Shareowners due to error or fraud, and performing procedures that respond
of Carrier Global Corporation to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the
Opinions on the Financial Statements and Internal Control consolidated financial statements. Our audits also included
over Financial Reporing evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall
We have audited the accompanying consolidated balance sheet
presentation of the consolidated financial statements. Our audit
of Carrier Global Corporation and its subsidiaries (the “Company”)
of internal control over financial reporting included obtaining
as of December 31, 2023 and 2022, and the related consolidated
an understanding of internal control over financial reporting,
statements of operations, of comprehensive income (loss), of
assessing the risk that a material weakness exists, and testing
changes in equity and of cash flows for each of the three years in
and evaluating the design and operating effectiveness of internal
the period ended December 31, 2023, including the related notes
control based on the assessed risk. Our audits also included
(collectively referred to as the “consolidated financial statements”).
performing such other procedures as we considered necessary in
We also have audited the Company’s internal control over financial
the circumstances. We believe that our audits provide a reasonable
reporting as of December 31, 2023, based on criteria established
basis for our opinions.
in Internal Control - Integrated Framework (2013) issued by
the Committee of Sponsoring Organizations of the Treadway
Defnition and Limitations of Internal Control
Commission (COSO).
over Financial Reporing
In our opinion, the consolidated financial statements referred to
A company’s internal control over financial reporting is a process
above present fairly, in all material respects, the financial position
designed to provide reasonable assurance regarding the
of the Company as of December 31, 2023 and 2022, and the
reliability of financial reporting and the preparation of financial
results of its operations and its cash flows for each of the three
statements for external purposes in accordance with generally
years in the period ended December 31, 2023 in conformity with
accepted accounting principles. A company’s internal control
accounting principles generally accepted in the United States
over financial reporting includes those policies and procedures
of America. Also in our opinion, the Company maintained, in all
that (i) pertain to the maintenance of records that, in reasonable
material respects, effective internal control over financial reporting
detail, accurately and fairly reflect the transactions and
as of December 31, 2023, based on criteria established in Internal
dispositions of the assets of the company; (ii) provide reasonable
Control - Integrated Framework (2013) issued by the COSO.
assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with
Basis for Opinions
generally accepted accounting principles, and that receipts
The Company’s management is responsible for these consolidated and expenditures of the company are being made only in
financial statements, for maintaining effective internal control over accordance with authorizations of management and directors of
financial reporting, and for its assessment of the effectiveness of the company; and (iii) provide reasonable assurance regarding
internal control over financial reporting, included in Management’s prevention or timely detection of unauthorized acquisition, use,
Report on Internal Control Over Financial Reporting appearing or disposition of the company’s assets that could have a material
under Item 9A. Our responsibility is to express opinions on effect on the financial statements.
the Company’s consolidated financial statements and on the
Because of its inherent limitations, internal control over financial
Company’s internal control over financial reporting based on our
reporting may not prevent or detect misstatements. Also,
audits. We are a public accounting firm registered with the Public
projections of any evaluation of effectiveness to future periods are
Company Accounting Oversight Board (United States) (PCAOB)
subject to the risk that controls may become inadequate because
and are required to be independent with respect to the Company
of changes in conditions, or that the degree of compliance with the
in accordance with the U.S. federal securities laws and the
policies or procedures may deteriorate.
applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
32 Carrier 2023 Annual Report
Report of Independent Registered Public Accounting Firm
Critical Audit Maters purchase products to ensure an adequate supply of its products
in distribution channels. The principal incentive programs provide
The critical audit matter communicated below is a matter
reimbursements to distributors for offering promotional pricing
arising from the current period audit of the consolidated
for products. The Company accounts for estimated incentive
financial statements that was communicated or required to be
payments as a reduction in sales at the time a sale is recognized.
communicated to the audit committee and that (i) relates to
accounts or disclosures that are material to the consolidated The principal considerations for our determination that
financial statements and (ii) involved our especially challenging, performing procedures relating to revenue recognition from
subjective, or complex judgments. The communication of critical contracts with customers is a critical audit matter are the high
audit matters does not alter in any way our opinion on the degree of audit effort in performing procedures related to revenue
consolidated financial statements, taken as a whole, and we are recognized on the Company’s point-in-time and over-time
not, by communicating the critical audit matter below, providing a contracts with customers.
separate opinion on the critical audit matter or on the accounts or
Addressing the matter involved performing procedures and
disclosures to which it relates.
evaluating audit evidence in connection with forming our
overall opinion on the consolidated financial statements. These
Revenue Recognition from Contracts with Customers procedures included testing the effectiveness of controls
As described in Note 13 to the consolidated financial statements, relating to the revenue recognition process on the Company’s
the Company recognized $22,098 million of consolidated revenue point-in-time and over-time contracts with customers.
for the year ended December 31, 2023. Some of the Company’s These procedures also included, among others, (i) evaluating
contracts with customers contain a single performance obligation, management’s significant accounting policies related to revenue
while others contain multiple performance obligations most recognition; (ii) testing the appropriateness of the timing and
commonly when a contract spans multiple phases of a product amount of revenue recognized for a sample of point-in-time
life-cycle such as production, installation, maintenance and revenue transactions by obtaining and inspecting source
support. The Company recognizes revenue when control of a good documents, such as contracts with customers, purchase order
or service promised in a contract (i.e., performance obligation) is information, shipping documents, cash receipts, and other
transferred to a customer. Control is obtained when a customer documentation; and (iii) evaluating and testing management’s
has the ability to direct the use of and obtain substantially all of process for determining the total estimated costs at completion
the remaining benefits from that good or service. A significant for a sample of over-time revenue contracts, which included
portion of the Company’s performance obligations are recognized evaluating the total estimated costs at completion used by
at a point-in-time when control of the product transfers to the management by considering factors that can affect the accuracy
customer, which is generally the time of shipment. The remaining of those estimates. Evaluating the total estimated costs at
portion of the Company’s performance obligations are recognized completion for revenue recognized on an over-time basis involved
over time as the customer simultaneously obtains control as comparing the originally estimated costs and actual costs
the Company performs work under a contract, or if the product incurred, including identifying circumstances that may warrant a
being produced for the customer has no alternative use and modification to the total estimated costs to complete.
the Company has a contractual right to payment. For over-time
performance obligations requiring the installation of equipment,
revenue is recognized using costs incurred to date relative to total
estimated costs at completion to measure progress. The Company
includes variable consideration in the estimated transaction
price when there is a basis to reasonably estimate the amount /s/ PricewaterhouseCoopers LLP
and when it is probable that a significant reversal of revenue Miami, Florida
recognized would not occur when the uncertainty associated February 6, 2024
with variable consideration is subsequently resolved. In addition, We have served as the Company’s auditor since 2019.
the Company customarily offers its customers incentives to
Carrier 2023 Annual Report 33
Consolidated Statement of Operations
For the Year Ended December 31,
(In millions, except per share amounts) 2023 2022 2021
Net sales
Product sales $19,563 $18,250 $17,214
Service sales 2,535 2,171 3,399
22,098 20,421 20,613
Costs and expenses
Cost of products sold (13,831) (13,337) (12,300)
Cost of services sold (1,884) (1,620) (2,333)
Research and development (617) (539) (503)
Selling, general and administrative (3,297) (2,512) (3,120)
(19,629) (18,008) (18,256)
Equity method investment net earnings 211 262 249
Other income (expense), net (384) 1,840 39
Operating proft 2,296 4,515 2,645
Non-service pension benefit (expense) (1) (4) 61
Interest (expense) income, net (211) (219) (306)
Income from operations before income taxes 2,084 4,292 2,400
Income tax expense (644) (708) (699)
Net income from operations 1,440 3,584 1,701
Less: Non-controlling interest in subsidiaries’ earnings from operations 91 50 37
Net income atributable to common shareowners $ 1,349 $ 3,534 $ 1,664
Earnings per share
Basic $ 1.61 $ 4.19 $ 1.92
Diluted $ 1.58 $ 4.10 $ 1.87
Weighted-average number of shares outstanding
Basic 837.3 843.4 867.7
Diluted 853.0 861.2 890.3
The accompanying notes are an integral part of the Consolidated Financial Statements.
34 Carrier 2023 Annual Report
Consolidated Statement of Comprehensive Income (Loss)
For the Year Ended December 31,
(In millions) 2023 2022 2021
Net income from operations $1,440 $ 3,584 $1,701
Other comprehensive income (loss), net of tax:
Foreign currency translation:
Foreign currency translation adjustments arising during period 157 (551) (322)
Less: reclassification adjustments for gain on sale of an investment in a foreign entity — — 8
recognized in Other income (expense), net
Chubb divestiture — (574) —
Foreign currency translation adjustments arising during period 157 (1,125) (314)
Pension and post-retirement beneft plans:
Net actuarial gain (loss) arising during period (17) 63 53
Amortization of actuarial (gain) loss and prior service credit 1 11 34
Chubb divestiture — 329 —
(16) 403 87
Tax (expense) benefit — (3) (17)
Pension and post-retirement beneft plans adjustments arising during period (16) 400 70
Change in unrealized cash fow hedging:
Unrealized cash flow hedging gain (loss) arising during period 58 — —
Other comprehensive income (loss), net of tax 199 (725) (244)
Comprehensive income (loss) 1,639 2,859 1,457
Less: Comprehensive income (loss) attributable to non-controlling interest (88) (24) (37)
Comprehensive income (loss) atributable to common shareowners $1,551 $ 2,835 $1,420
The accompanying notes are an integral part of the Consolidated Financial Statements.
Carrier 2023 Annual Report 35
Consolidated Balance Sheet
As of December 31,
(In millions, except share amounts) 2023 2022
Assets
Cash and cash equivalents $10,015 $ 3,520
Accounts receivable, net 2,481 2,833
Contract assets, current 306 537
Inventories, net 2,217 2,640
Assets held for sale 3,314 —
Other assets, current 447 349
Total current assets 18,780 9,879
Future income tax benefits 739 612
Fixed assets, net 2,293 2,241
Operating lease right-of-use assets 491 642
Intangible assets, net 1,028 1,342
Goodwill 7,989 9,977
Pension and post-retirement assets 32 26
Equity method investments 1,140 1,148
Other assets 330 219
Total Assets $32,822 $26,086
Liabilities and Equity
Accounts payable $ 2,742 $ 2,833
Accrued liabilities 2,811 2,610
Contract liabilities, current 425 449
Liabilities held for sale 862 —
Current portion of long-term debt 51 140
Total current liabilities 6,891 6,032
Long-term debt 14,242 8,702
Future pension and post-retirement obligations 155 349
Future income tax obligations 535 568
Operating lease liabilities 391 529
Other long-term liabilities 1,603 1,830
Total Liabilities 23,817 18,010
Commitments and contingent liabilities (Note 23)
Equity
Common stock, par value $0.01; 4,000,000,000 shares authorized; 883,068,393 and 876,487,480 shares 9 9
issued; 839,910,275 and 834,664,966 outstanding as of December 31, 2023 and 2022, respectively
Treasury stock - 43,490,981 common shares (1,972) (1,910)
Additional paid-in capital 5,535 5,481
Retained earnings 6,591 5,866
Accumulated other comprehensive income (loss) (1,486) (1,688)
Non-controlling interest 328 318
Total Equity 9,005 8,076
Total Liabilities and Equity $32,822 $26,086
The accompanying notes are an integral part of the Consolidated Financial Statements.
36 Carrier 2023 Annual Report
Consolidated Statement of Changes In Equity
Accumulated
Other Additional Non-
Comprehensive Common Treasury Paid-In Retained Controlling Total
(In millions) Income (Loss) Stock Stock Capital Earnings Interest Equity
Balance, December 31, 2020 $ (745) $9 $ — $ 5,345 $ 1,643 $ 326 $ 6,578
Net income — — — — 1,664 37 1,701
Other comprehensive income (loss), net of tax (244) — — — — — (244)
Dividends declared on common stock — — — — (442) — (442)
($0.510 per share)
Shares issued under incentive plans, net — — — (24) — — (24)
Stock-based compensation — — — 92 — — 92
Acquisition (sale) of non-controlling interest, net — — — (2) — 2 —
Dividends attributable to non-controlling interest — — — — — (38) (38)
Treasury stock repurchases — — (529) — — — (529)
Balance at December 31, 2021 $ (989) $9 $ (529) $ 5,411 $ 2,865 $ 327 $ 7,094
Net income — — — — 3,534 50 3,584
Other comprehensive income (loss), net of tax (699) — — — — (26) (725)
Dividends declared on common stock — — — — (533) — (533)
($0.635 per share)
Shares issued under incentive plans, net — — — (12) — — (12)
Stock-based compensation — — — 77 — — 77
Acquisition of non-controlling interest — — — 5 — 22 27
Sale of non-controlling interest — — — — — (5) (5)
Dividends attributable to non-controlling interest — — — — — (50) (50)
Treasury stock repurchases — — (1,381) — — — (1,381)
Balance at December 31, 2022 $(1,688) $9 $ (1,910) $5,481 $5,866 $318 $ 8,076
Net income — — — — 1,349 91 1,440
Other comprehensive income (loss), net of tax 202 — — — — (3) 199
Dividends declared on common stock — — — — (624) — (624)
($0.745 per share)
Shares issued under incentive plans, net — — — (27) — — (27)
Stock-based compensation — — — 81 — — 81
Dividends attributable to non-controlling interest — — — — — (56) (56)
Acquisition (sale) of non-controlling interest, net — — — — — (22) (22)
Treasury stock repurchase — — (62) — — — (62)
Balance as of December 31, 2023 $(1,486) $9 $ (1,972) $5,535 $6,591 $328 $ 9,005
The accompanying notes are an integral part of the Consolidated Financial Statements.
Carrier 2023 Annual Report 37
Consolidated Statement of Cash Flows
For the Year Ended December 31,
(In millions) 2023 2022 2021
Operating Activities
Net income from operations $ 1,440 $3,584 $1,701
Adjustments to reconcile net income from operations to net cash flows from operating activities
Depreciation and amortization 542 380 338
Deferred income tax provision (233) (124) (74)
Stock-based compensation cost 81 77 92
Equity method investment net earnings (211) (262) (249)
Impairment charge on minority-owned joint venture investments — — 2
(Gain) loss on extinguishment of debt — (36) —
(Gain) loss on sale of investments / deconsolidation 278 (1,815) 2
Changes in operating assets and liabilities
Accounts receivable, net (148) (145) (97)
Contract assets, current 93 (51) (47)
Inventories, net 237 (334) (408)
Other assets, current (117) 104 (11)
Accounts payable and accrued liabilities 477 61 829
Contract liabilities, current 74 29 51
Defined benefit plan contributions (33) (16) (47)
Distributions from equity method investments 129 148 159
Other operating activities, net (2) 143 (4)
Net cash flows provided by (used in) operating activities 2,607 1,743 2,237
Investing Activities
Capital expenditures (469) (353) (344)
Proceeds on sale of investments — — 7
Investment in businesses, net of cash acquired (84) (506) (366)
Dispositions of businesses 54 2,902 —
Settlement of derivative contracts, net (50) (194) 4
Payment to former shareholders of TCC — (104) —
Kidde-Fenwal, Inc. deconsolidation (134) — —
Other investing activities, net 23 — 7
Net cash flows provided by (used in) investing activities (660) 1,745 (692)
Financing Activities
(Decrease) increase in short-term borrowings, net (15) (140) 13
Issuance of long-term debt 5,609 432 140
Repayment of long-term debt (111) (1,275) (704)
Repurchases of common stock (62) (1,380) (527)
Dividends paid on common stock (620) (509) (417)
Dividends paid to non-controlling interest (58) (46) (42)
Other financing activities, net (131) (13) (25)
Net cash flows provided by (used in) financing activities 4,612 (2,931) (1,562)
Effect of foreign exchange rate changes on cash and cash equivalents 88 (56) (16)
Net increase (decrease) in cash and cash equivalents and restricted cash, including cash 6,647 501 (33)
classified in current assets held for sale
Less: Change in cash balances classified as assets held for sale 157 — 60
Net increase (decrease) in cash and cash equivalents and restricted cash 6,490 501 (93)
Cash, cash equivalents and restricted cash, beginning of period 3,527 3,026 3,119
Cash, cash equivalents and restricted cash, end of period 10,017 3,527 3,026
Less: restricted cash 2 7 39
Cash and cash equivalents, end of period $10,015 $3,520 $2,987
The accompanying notes are an integral part of the Consolidated Financial Statements.
38 Carrier 2023 Annual Report
Notes to the Group GmbH & Co. KG (“Viessmann”), a privately-held company.
The VCS Business develops intelligent, integrated and sustainable
Consolidated
technologies, including heat pumps, boilers, photovoltaic
systems, home battery storage and digital solutions, primarily for
Financial Statements
residential customers in Europe. The acquisition was completed
on January 2, 2024 for total consideration of $14.2 billion.
On April 25, 2023, the Company announced plans to exit its Fire &
Security and Commercial Refrigeration businesses over the
Note 1: Description of the Business course of 2024. On December 7, 2023, the Company entered
into a stock purchase agreement to sell its Access Solutions
Carrier Global Corporation (the “Company”) is a global leader in
business (“Access Solutions”) to Honeywell International Inc. for an
intelligent climate and energy solutions with a focus on providing
enterprise value of approximately $4.95 billion. Access Solutions,
differentiated, digitally-enabled lifecycle solutions to its customers.
historically reported in the Company’s Fire & Security segment, is
The Company’s portfolio includes industry-leading brands such
a global supplier of physical security and digital access solutions
as Carrier, Toshiba, Automated Logic, Carrier Transicold, Kidde,
supporting the hospitality, commercial, education and military
Edwards and LenelS2 that offer innovative heating, ventilating and
markets. On December 12, 2023, the Company entered into a
air conditioning (“HVAC”), refrigeration, fire, security and building
stock purchase agreement to sell its Commercial Refrigeration
automation technologies to help make the world safer and more
business (“CCR”) to Haier Group Corporation for an enterprise
comfortable. The Company also provides a broad array of related
value of approximately $775 million. CCR, historically reported
building services, including audit, design, installation, system
in the Company’s Refrigeration segment, is a global supplier
integration, repair, maintenance and monitoring. The Company’s
of turnkey solutions for commercial refrigeration systems and
operations are classified into three segments: HVAC, Refrigeration
services, with a primary focus on serving food retail customers,
and Fire & Security.
cold storage facilities and warehouses. As a result, the assets and
liabilities of both businesses are presented as held for sale in the
Note 2: Basis of Presentation accompanying Consolidated Balance Sheets as of December 31,
2023 and recorded at the lower of their carrying value or fair value
The accompanying Consolidated Financial Statements less estimated cost to sell.
reflect the consolidated operations of the Company and have
In addition, the net assets of the Company’s Industrial Fire
been prepared in accordance with U.S. Generally Accepted
business met the criteria to be classified as held for sale during
Accounting Principles (“GAAP”) as defined by the Financial
the fourth quarter of 2023. Industrial Fire, historically reported in
Accounting Standards Board (“FASB”) within the FASB Accounting
the Company’s Fire & Security segment, is a leading manufacturer
Standards Codification (“ASC”). Inter-company accounts and
of a full spectrum of fire detection and suppression solutions and
transactions have been eliminated. Related party transactions
services in critical high-hazard environments, including oil and
between the Company and its equity method investees have not
gas, power generation, marine and offshore facilities, automotive,
been eliminated.
data centers and aircraft hangars. As a result, the assets and
The accompanying Consolidated Financial Statements include all liabilities of the business are presented as held for sale in the
majority-owned subsidiaries of the Company. A non-controlling accompanying Consolidated Balance Sheet as of December 31,
interest in a subsidiary is considered an ownership interest in a 2023 and recorded at the lower of their carrying value or fair value
majority-owned subsidiary that is not attributable to the parent. less estimated cost to sell.
The Company includes Non-controlling interest as a component
of Total equity in the accompanying Consolidated Balance Sheet Deconsolidation of Kidde-Fenwal, Inc.
and the Non-controlling interest in subsidiaries’ earnings from
On May 14, 2023, Kidde-Fenwal, Inc. (“KFI”), an indirect wholly-
operations are presented as an adjustment to Net income from
owned subsidiary of the Company, filed a petition for voluntary
operations used to arrive at Net income attributable to common
reorganization under Chapter 11 of the United States Bankruptcy
shareowners in the accompanying Consolidated Statement
Code (“Chapter 11”) in the United States Bankruptcy Court for
of Operations. Partially-owned equity affiliates represent 20 to
the District of Delaware. KFI, an industrial fire detection and
50% ownership interests in investments where the Company
suppression business historically reported in the Company’s
demonstrates significant influence, but does not have a controlling
Fire & Security segment, has indicated that it intends to use the
financial interest. Partially-owned equity affiliates are accounted
bankruptcy process to explore strategic alternatives, including
for under the equity method.
the sale of KFI as a going concern. KFI has further stated that,
during the Chapter 11 process, KFI expects that there will be
Planned Porfolio Transformation
no significant interruptions to its business operations. As of
On April 25, 2023, the Company announced that it entered into the petition date, KFI was deconsolidated and its respective
a Share Purchase Agreement (the “Agreement”) to acquire the assets and liabilities were derecognized from the Company’s
climate solutions business (the “VCS Business”) of Viessmann Consolidated Financial Statements.
Carrier 2023 Annual Report 39
Notes to the Consolidated Financial Statements
Acquisition of Toshiba Carrier Corporation Note 3: Summary of Signifcant
On February 6, 2022, the Company entered into a binding Accounting Policies
agreement to acquire a majority ownership interest in Toshiba
Carrier Corporation (“TCC”), a variable refrigerant flow (“VRF”) and A summary of significant accounting policies used in the
light commercial HVAC joint venture between Carrier and Toshiba preparation of the accompanying Consolidated Financial
Corporation. The acquisition was completed on August 1, 2022. Statements is as follows:
As a result, the assets, liabilities and results of operations of TCC
Use of Estimates. The preparation of the Consolidated Financial
are consolidated in the accompanying Consolidated Financial
Statements in conformity with GAAP requires management to
Statements as of the date of acquisition and reported within the
make estimates and assumptions that affect the reported amounts
Company’s HVAC segment. Upon closing, Toshiba Corporation
of assets and liabilities and the disclosure of contingent assets
retained a 5% ownership interest in TCC.
and liabilities at the date of the financial statements as well as the
reported amounts of revenues and expenses during the reporting
Sale of Chubb Fire & Security Business
period. Estimates are based on several factors including the facts
On July 26, 2021, the Company entered into a stock purchase and circumstances available at the time the estimates are made,
agreement to sell its Chubb Fire and Security business (“Chubb”) historical experience and various other assumptions that are
to APi Group Corporation (“APi”). Chubb, which was reported believed to be reasonable under the circumstances. Actual results
within the Company’s Fire & Security segment, delivered essential could differ from those estimates.
fire safety and security solutions from design and installation Currency Translation. Assets and liabilities of non-U.S. subsidiaries,
to monitoring, service and maintenance across more than where the functional currency is not the U.S. dollar, have been
17 countries around the globe. On January 3, 2022, the Company translated at year-end exchange rates, and income and expense
completed the sale of Chubb (the “Chubb Sale”) for net proceeds accounts have been translated using average exchange rates
of $2.9 billion and recognized a gain on the sale of $1.1 billion throughout the year. Adjustments resulting from the process of
during the year ended December 31, 2022. translating an entity’s financial statements into the U.S. dollar have
been recorded in the equity section of the Consolidated Balance
Separation from United Technologies Sheet within Accumulated other comprehensive income (loss).
On April 3, 2020 (the “Distribution Date”), United Technologies Transactions that are denominated in a currency other than an
Corporation (“UTC”), since renamed RTX Corporation (“Raytheon entity’s functional currency are subject to changes in exchange
Technologies Corporation” or “RTX”), completed the spin-off rates with the resulting gains and losses recorded in Net income
of Carrier into an independent, publicly traded company (the from operations.
“Separation”) through a pro rata distribution (the “Distribution”) Cash and Cash Equivalents. Cash and cash equivalents include
on a one-for-one basis of all of the outstanding shares of cash on hand, demand deposits and short-term cash investments
common stock of Carrier to UTC shareowners who held shares that are highly liquid in nature and have original maturities of three
of UTC common stock as of the close of business on March 19, months or less. On occasion, the Company is required to maintain
2020, the record date for the Distribution. In connection with restricted cash deposits with certain banks due to contractual or
the Separation, the Company issued an aggregate principal other legal obligations. Restricted cash of $2 million and $7 million
balance of $11.0 billion of debt and transferred approximately is included in Other assets, current as of December 31, 2023 and
$10.9 billion of cash to UTC on February 27, 2020 and March 27, 2022, respectively.
2020. On April 1, 2020 and April 2, 2020, the Company received
Accounts Receivable. Accounts receivable consist of billed
cash contributions totaling $590 million from UTC related to
amounts owed for products shipped to or services performed
the Separation.
for customers. Amounts are recorded net of an allowance for
Following the Separation and Distribution, the Company expected credit losses which represents the best estimate of
entered into several agreements with UTC and Otis Worldwide probable loss inherent in the Company’s accounts receivable
Corporation (“Otis”) that govern various aspects of the portfolio. The allowance is determined using a combination of
relationship among the Company, UTC and Otis. As of December factors including a reserve based on the aging of the outstanding
31, 2023, only certain portions of the Tax Matters Agreement accounts receivable portfolio and the Company’s historical credit
(“TMA”) remain in effect. The Company incurred separation- loss experience with its end markets, customer base and products.
related costs of $20 million for the year ended December 31, In addition, the Company considers knowledge of specific
2021. These costs are primarily included in Selling, general and customers, current market conditions as well as reasonable and
administrative in the accompanying Consolidated Statement supportable forecasts of future events and economic conditions.
of Operations and consist of employee-related costs, costs As of December 31, 2023 and 2022, the allowance for expected
to establish certain stand-alone functions and information credit losses was $108 million and $117 million, respectively. These
technology systems, professional service fees and other estimates and assumptions are reviewed periodically with the
transaction-related costs resulting from Carrier’s transition to effects of changes, if any, reflected in the Consolidated Statement
becoming an independent, publicly traded company. of Operations in the period that they are determined.
40 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Fixed Assets. Property, plant and equipment are stated at cost less unit exceeds its estimated fair value, an impairment loss will be
accumulated depreciation. Assets placed in service are recorded recognized for the amount by which the reporting unit’s carrying
at cost and depreciated using the straight-line method over the amount exceeds its fair value, not to exceed the carrying amount
estimated useful life of the asset. Assets acquired in a business of goodwill in that reporting unit.
combination are recorded at fair value at the date of acquisition.
Intangible assets such as patents, service contracts, monitoring
Major expenditures for replacements and significant improvements
lines and customer relationships with finite useful lives are
that increase asset values and extend useful lives are capitalized.
amortized based on the pattern in which the economic benefits
Repairs and maintenance expenditures that do not extend the
of the intangible assets are consumed. If a pattern of economic
useful life of an asset are charged to expense as incurred.
benefit cannot be reliably determined or if straight-line
Per ASC 360, Property, Plant and Equipment (“ASC 360”), the amortization approximates the pattern of economic benefit, a
Company assesses the recoverability of the carrying value of straight-line amortization may be used.
its property, plant and equipment whenever events or changes
The range of useful lives approximate the following (in years):
in circumstances indicate that the carrying amount of an asset
group may not be recoverable. Recoverability is measured by
Customer relationships 1 to 30
a comparison of the carrying amount of an asset group to the
Patents and trademarks 5 to 30
future net undiscounted cash flows expected to be generated
by the asset group. If the undiscounted cash flows are less than Monitoring lines 7 to 10
the carrying amount of the asset group, an impairment loss is Service portfolio and other 1 to 23
recognized for the amount by which the carrying amount of the
asset group exceeds the fair value of the asset group.
The Company assesses the recoverability of the carrying amount
Equity Method Investments. Investments in which the Company of its intangible assets with finite useful lives whenever events or
has the ability to exercise significant influence, but does not changes in circumstances indicate that the carrying amount of the
control, are accounted for under the equity method of accounting asset group may not be recoverable. Recoverability is measured
and are presented on the Consolidated Balance Sheet. Under this by a comparison of the carrying amount of an asset group to the
method of accounting, the Company’s share of the net earnings or future net undiscounted cash flows expected to be generated
losses of the investee is presented within Operating profit on the by the asset group. If the undiscounted cash flows are less than
Consolidated Statement of Operations since the activities of the the carrying amount of the asset group, an impairment loss is
investee are closely aligned with the operations of the Company. recognized for the amount by which the carrying value of the asset
The Company evaluates its equity method investments whenever group exceeds the fair value of the asset group.
events or changes in circumstance indicate that the carrying
Leases. The Company accounts for leases in accordance with
amounts of such investments may be impaired. If a decline in the
ASC 842, Leases (“ASC 842”), which requires a lessee to record a
value of an equity method investment is determined to be other
right-of-use (“ROU”) asset and a lease liability on the Consolidated
than temporary, a loss is recorded in earnings in the current period.
Balance Sheet for all leases with terms longer than 12 months. ROU
Distributions received from equity method investees are presented
assets and liabilities are recognized at the commencement date
in the Consolidated Statement of Cash Flows based on the
based on the present value of lease payments over the lease term.
cumulative earnings approach.
The Company generally uses its incremental borrowing rate, which
Goodwill and Intangible Assets. The Company records goodwill as is based on information available at the lease commencement
the excess of the purchase price over the fair value of the net assets date, to determine the present value of lease payments except
acquired in a business combination. In accordance with ASC 350, when an implicit interest rate is readily determinable. The lease
Intangibles - Goodwill and Other (“ASC 350”), goodwill and other term may include options to extend or terminate the lease when
indefinite-lived intangibles are tested and reviewed annually for it is reasonably certain that the Company will exercise that option.
impairment on July 1 or whenever there is a material change in events The Company has elected not to recognize ROU assets and lease
or circumstances that indicate that the fair value of the asset is more obligations for its short-term leases, which are defined as leases
likely than not less than the carrying amount of the asset. with an initial term of 12 months or less.
Impairment of goodwill is assessed at the reporting unit level and Income Taxes. The Company accounts for income taxes in
begins with a qualitative assessment to determine if it is more likely accordance with ASC 740, Income Taxes (“ASC 740”). Deferred
than not that the fair value of each reporting unit is less than its tax assets and liabilities are determined based on temporary
carrying amount as a basis for determining whether it is necessary differences between financial reporting and tax bases of assets
to perform the goodwill impairment test under ASC 350. For those and liabilities, applying enacted tax rates expected to be in effect
reporting units that bypass or fail the qualitative assessment, the for the year in which the differences are expected to reverse.
test compares the carrying amount of the reporting unit to its The Company recognizes future tax benefits to the extent that
estimated fair value. If the estimated fair value of a reporting unit realizing these benefits is considered in its judgment to be more
exceeds its carrying amount, goodwill of the reporting unit is not likely than not. For those jurisdictions where the expiration date
impaired. To the extent that the carrying amount of the reporting of tax carryforwards or the projected operating results indicate
Carrier 2023 Annual Report 41
Notes to the Consolidated Financial Statements
that realization is not likely, a valuation allowance is provided. The Asset Retirement Obligations. The Company records the fair value
Company reviews the realizability of its deferred tax asset valuation of legal obligations associated with the retirement of tangible
allowances on a quarterly basis, or whenever events or changes long-lived assets in the period in which a liability is determined
in circumstances indicate that a review is required and will adjust to exist, if a reasonable estimate of fair value can be made. Upon
its estimate if significant events so dictate. To the extent that the initial recognition of a liability, the Company capitalizes the cost
ultimate results differ from the Company’s original or adjusted of the asset retirement obligation by increasing the carrying
estimates, the effect will be recorded in the provision for income amount of the related long-lived asset. Over time, the liability is
taxes in the period that the matter is finally resolved. increased for changes in its present value and the capitalized cost
is depreciated over the useful life of the related asset.
In the ordinary course of business, there is inherent uncertainty in
quantifying the Company’s income tax positions. The Company Research and Development. The Company conducts research and
assesses its income tax positions and records tax benefits for development activities with a focus on new product development
all years subject to examination based upon management’s and technology innovation. These costs are charged to expense
evaluation of the facts, circumstances and information available as incurred. For the years ended December 31, 2023, 2022 and
at the reporting date. For those tax positions where it is more likely 2021, these costs amounted to $617 million, $539 million and
than not that a tax benefit will be sustained, the Company has $503 million, respectively.
recorded the largest amount of tax benefit with a greater than 50%
likelihood of being realized upon ultimate settlement with a taxing Recent Pronouncements
authority that has full knowledge of all relevant information. For
The FASB ASC is the sole source of authoritative GAAP other than
those income tax positions where it is not more likely than not that
United States Securities and Exchange Commission (“SEC’) issued
a tax benefit will be sustained, no tax benefit has been recognized
rules and regulations that apply only to SEC registrants. The FASB
in the Consolidated Financial Statements.
issues Accounting Standards Updates (“ASU”) to communicate
Pension and Post-retirement Obligations. The Company provides changes to the codification. The Company considers the
a range of benefit plans to eligible current and former employees. applicability and impact of all ASUs. ASUs not referenced below
The Company accounts for its benefit plans in accordance were assessed and determined to be either not applicable or
with ASC 715, Compensation - Retirement Benefits (“ASC 715”) are not expected to have a material impact on the Consolidated
which requires balance sheet recognition of the overfunded Financial Statements.
or underfunded status of pension and post-retirement benefit
plans. Determining the amounts associated with these benefits Recently Issued Accounting Pronouncements
are performed by actuaries and dependent on various actuarial
In November 2023, the FASB issued ASU 2023-07, Segment
assumptions including discount rates, expected return on plan
Reporting (Topic 280): Improvements to Reportable Segment
assets, compensation increases, mortality and health care cost
Disclosures (“ASU 2023-07”), which requires public entities to
trends. Actual results may differ from the actuarial assumptions
disclose information about their reportable segments’ significant
and are generally recorded in Accumulated other comprehensive
expenses on an interim and annual basis. In addition, the
income (loss) and amortized into Net income from operations over
amendments clarify circumstances in which an entity can disclose
future periods. The Company reviews its actuarial assumptions
multiple segment measures of profit or loss, provides new segment
at each measurement date and makes modifications to the
disclosure requirements for entities with a single reportable
assumptions based on current rates and trends, if appropriate. See
segment and contains other disclosure requirements. ASU 2023-07
Note 10 – Employee Benefit Plans for additional information.
is effective for fiscal years beginning after December 15, 2023 and
Business Combinations. In accordance with ASC 805, Business interim periods within fiscal years beginning after December 15,
Combinations (“ASC 805”), acquisitions that meet the definition 2024, with early adoption permitted. The Company is currently
of a business are recorded using the acquisition method of assessing the impact of this ASU on its financial statements.
accounting. We recognize and measure the identifiable assets
In December 2023, the FASB issued ASU 2023-09, Income Taxes
acquired, liabilities assumed and any non-controlling interest as
(Topic 740): Improvements to Income Tax Disclosures (“ASU
of the acquisition date at fair value. The valuation of intangible
2023-09”), which requires public entities to disclose disaggregated
assets is determined by an income approach methodology, using
information about their effective tax rate reconciliation as well
assumptions such as projected future revenues, customer attrition
as information on income taxes paid. ASU 2023-09 is effective
rates, royalty rates, tax rates and discount rates. The excess, if any,
for fiscal years beginning after December 15, 2023 and interim
of total consideration transferred in a business combination over
periods within fiscal years beginning after December 15, 2024, with
the fair value of identifiable assets acquired, liabilities assumed
early adoption permitted. The Company is currently assessing the
and any non-controlling interest is recognized as goodwill. Costs
impact of this ASU on its financial statements.
incurred as a result of a business combination other than costs
related to the issuance of debt or equity securities are recorded in
the period the costs are incurred.
42 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Note 4: Inventories, Net Note 5: Fixed Assets, Net
Inventories are stated at the lower of cost or estimated net Fixed assets, net consisted of the following:
realizable value. Cost is primarily determined based on the first-in,
Estimated
first-out inventory method (“FIFO”) or average cost methods, which Useful Lives
approximates current replacement cost. However, certain Carrier (In millions) (Years) 2023 2022
entities use the last-in, first-out inventory method (“LIFO”). Land $ 112 $ 126
Inventories, net consisted of the following: Buildings and improvements 20 to 40 1,122 1,251
Machinery, tools and equipment 3 to 25 2,515 2,409
(In millions) 2023 2022 Rental assets 3 to 12 346 390
Raw materials $ 695 $ 884 Other, including assets under 442 347
Work-in-process 259 230 construction
Finished goods 1,263 1,526 Fixed assets, gross 4,537 4,523
Inventories, net $2,217 $2,640 Accumulated depreciation (2,244) (2,282)
Fixed assets, net $ 2,293 $ 2,241
The Company performs periodic assessments utilizing customer
demand, production requirements and historical usage rates to Depreciation expense was $300 million, $256 million and
determine the existence of excess and obsolete inventory and $238 million for the years ended December 31, 2023, 2022
records necessary provisions to reduce such inventories to the and 2021, respectively.
lower of cost or estimated net realizable value. Raw materials,
work-in-process and finished goods are net of valuation reserves Note 6: Goodwill and Intangible Assets
of $223 million and $190 million as of December 31, 2023
and 2022, respectively. The Company records goodwill as the excess of the purchase
price over the fair value of the net assets acquired in a
Certain entities use LIFO to determine the cost of inventory.
business combination. Goodwill is tested and reviewed
If inventories that were valued using the LIFO method had
annually for impairment on July 1 or whenever there is a
been valued under the FIFO method, the net book value of
material change in events or circumstances that indicates
the inventories would have been higher by $226 million and
that the fair value of the reporting unit may be less than its
$199 million as of December 31, 2023 and 2022, respectively.
carrying value.
As of December 31, 2023 and 2022, approximately 35% and 26%,
respectively, of all inventory utilized the LIFO method. The changes in the carrying amount of goodwill were as follows:
Fire &
(In millions) HVAC Refrigeration Security Total
Balance at December 31, 2021 $ 5,658 $ 1,228 $ 2,463 $ 9,349
Goodwill resulting from business combinations (1) 904 — 1 905
Foreign currency translation (170) (31) (76) (277)
Balance at December 31, 2022 $ 6,392 $ 1,197 $ 2,388 $ 9,977
Goodwill resulting from business combinations 1 (4) — (3)
Reclassified to held for sale (2)
— (72) (1,937) (2,009)
Foreign currency translation 14 3 7 24
Balance as of December 31, 2023 $6,407 $1,124 $ 458 $7,989
(1)
See Note 19 - Acquisitions for additional information.
(2)
See Note 20 - Divestitures for additional information.
Indefinite-lived intangible assets are tested and reviewed annually asset may be less than the carrying amount of the asset. All other
for impairment on July 1 or whenever there is a material change in intangible assets with finite useful lives are amortized over their
events or circumstances that indicates that the fair value of the estimated useful lives.
Carrier 2023 Annual Report 43
Notes to the Consolidated Financial Statements
Identifiable intangible assets consisted of the following:
2023 2022
Accumulated Accumulated
(In millions) Gross Amount Amorization Net Amount Gross Amount Amortization Net Amount
Amortized:
Customer relationships $1,222 $ (610) $ 612 $1,431 $ (720) $ 711
Patents and trademarks 332 (163) 169 401 (191) 210
Service portfolios and other 686 (503) 183 953 (595) 358
2,240 (1,276) 964 2,785 (1,506) 1,279
Unamortized:
Trademarks and other 64 — 64 63 — 63
Intangible assets, net $2,304 $(1,276) $1,028 $2,848 $(1,506) $1,342
Amortization of intangible assets was $242 million, $124 million Note 7: Borrowings and Lines of Credit
and $98 million for the years ended December 31, 2023, 2022 and
2021, respectively. Long-term debt consisted of the following:
The estimated future amortization of intangible assets is as follows:
(In millions) 2023 2022
(In millions) 2024 2025 2026 2027 2028 Thereafter 2.242% Notes due 2025 $ 1,200 $1,200
Future 4.375% Notes due 2025 830 —
amortization $175 $155 $122 $95 $75 $342 5.800% Notes due 2025 1,000 —
2.493% Notes due 2027 900 900
Annual Impairment Assessment
4.125% Notes due 2028 830 —
The Company tested its goodwill and indefinite-lived intangible 2.722% Notes due 2030 2,000 2,000
assets for impairment on July 1 as part of its annual assessment. 2.700% Notes due 2031 750 750
For each test, the Company qualitatively assessed all relevant 4.500% Notes due 2032 941 —
events or circumstances that could impact the estimate of fair 5.900% Notes due 2034 1,000 —
value and determined it was more likely than not that the fair 3.377% Notes due 2040 1,500 1,500
value of each reporting unit and indefinite-lived intangible asset 3.577% Notes due 2050 2,000 2,000
exceeded their carrying amount.
6.200% Notes due 2054 1,000 —
In connection with the presentation of CCR, Access Solutions and Total long-term notes 13,951 8,350
Industrial Fire as held for sale at December 31, 2023, the Company Japanese Term Loan Facility 379 404
reassigned goodwill between each of the remaining reporting Other debt (including project financing 74 149
units within its Fire & Security segment using a relative fair value obligations and finance leases)
approach. As a result, the Company performed a quantitative Discounts and debt issuance costs (111) (61)
goodwill impairment test to determine if any impairment existed. Total debt 14,293 8,842
The test did not indicate any goodwill impairment. Less: current portion of long-term debt 51 140
Long-term debt, net of current porion $14,242 $8,702
Debt Issuance
In November 2023, the Company issued $3.0 billion principal
amount of USD-denominated notes in three tranches. The
tranches consist of $1.0 billion aggregate principal amount of
5.800% notes due 2025, $1.0 billion aggregate principal amount
of 5.900% notes due 2034 and $1.0 billion aggregate principal
amount of 6.200% notes due 2054 (collectively, the “USD Notes”).
In addition, the Company issued €2.35 billion principal amount of
Euro-denominated notes in three tranches. The tranches consist
of €750 million aggregate principal amount of 4.375% notes due
2025, €750 million aggregate principal amount of 4.125% notes
due 2028 and €850 million aggregate principal amount of 4.500%
44 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
notes due 2032 (collectively, the “Euro Notes”). The Company Project Financing Arrangements
capitalized $51 million of deferred financing costs which are being
The Company is involved in long-term construction contracts in
amortized over the term of their related notes.
which it arranges project financing with certain customers. As a
The Company used the USD Notes and the Euro Notes to fund result, the Company issued $39 million and $38 million of debt
a portion of the Euro-denominated purchase price of the VCS during the year ended December 31, 2023 and 2022, respectively.
Business. The Company has the option to redeem the notes in Long-term debt repayments associated with these financing
whole or in part at any time, prior to their stated maturity date at arrangements for the years ended December 31, 2023 and 2022
redemption prices set forth in the indenture agreements. The notes were $111 million and $160 million, respectively.
are subject to certain customary covenants.
Debt Covenants
Japanese Term Loan Facility
The Revolving Credit Facility, the indenture for the long-term
On July 15, 2022, the Company entered into a five-year, JPY 54 notes and the Japanese Term Loan Facility contain affirmative
billion (approximately $400 million) senior unsecured term loan and negative covenants customary for financings of these
facility with MUFG Bank Ltd., as administrative agent and lender, types, which, among other things, limit the Company’s ability
and certain other lenders (the “Japanese Term Loan Facility”). to incur additional liens, to make certain fundamental changes
Borrowings under the Japanese Term Loan Facility bear interest and to enter into sale and leaseback transactions. As of
at a rate equal to the Tokyo Term Risk Free Rate plus 0.75%. In December 31, 2023, the Company was in compliance with the
addition, the Japanese Term Loan Facility is subject to customary covenants under the agreements governing its outstanding
covenants including a covenant to maintain a maximum indebtedness.
consolidated leverage ratio. The Company capitalized $2 million
of deferred financing costs which are being amortized over the Tender Ofers
term of the facility. On July 25, 2022, the Company borrowed JPY
On March 15, 2022, the Company commenced tender offers to
54 billion under the Japanese Term Loan Facility and used the
purchase up to $1.15 billion (“Aggregate Tender Cap”) aggregate
proceeds to fund a portion of the TCC acquisition and to pay
principal of the Company’s 2.242% Notes due 2025 and 2.493%
related fees and expenses.
Notes due 2027 (together, the “Senior Notes”). The tender offers
included payment of applicable accrued and unpaid interest
Revolving Credit Facility
up to the settlement date, along with a fixed spread for early
On May 19, 2023, the Company entered into a revolving credit repayment. Based on participation, the Company elected to
agreement with JPMorgan Chase Bank, N.A., as administrative settle the tender offers on March 30, 2022. The aggregate
agent, and certain other lenders, permitting aggregate principal amount of Senior Notes validly tendered and accepted
borrowings of up to $2.0 billion pursuant to an unsecured, was approximately $1.15 billion, which included $800 million
unsubordinated revolving credit facility that matures in of Notes due 2025 and $350 million of Notes due 2027. As a
May 2028 (the “Revolving Credit Facility”). The Revolving Credit result, the Company recognized a net gain of $33 million and
Facility supports the Company’s commercial paper program and wrote off $5 million of unamortized deferred financing costs
can be used for other general corporate purposes. Borrowings within Interest (expense) income, net on the accompanying
are available in U.S. Dollars and Euros. U.S. Dollar borrowings Consolidated Statement of Operations during the year ended
can bear interest at either a Term SOFR Rate plus 0.10% and a December 31, 2022.
ratings-based margin or, alternatively, at an alternate base rate
Schedule of Long-term Debt Maturities
plus a ratings-based margin. Euro borrowings bear interest at an
adjusted EURIBOR rate plus a ratings-based margin. A ratings- Scheduled maturities of long-term debt, excluding amortization of
based commitment fee is charged on unused commitments. discount, are as follows:
Upon entering into the agreement, the Company terminated
its existing revolving credit facility that was set to mature in (In millions)
April 2025. In addition, the Company capitalized $2 million of 2024 $ 51
deferred financing costs which are being amortized over the 2025 $3,053
term of the facility. As of December 31, 2023, there were no
2026 $ 4
borrowings outstanding under the Revolving Credit Facility.
2027 $1,245
2028 $ 832
Commercial Paper Program
Thereafter $9,191
The Company has a $2.0 billion unsecured, unsubordinated
commercial paper program, which can be used for general
corporate purposes, including the funding of working capital and As of December 31, 2023, the average maturity of the Company’s
potential acquisitions. As of December 31, 2023, there were no long-term notes is approximately 11 years and the weighted-
borrowings outstanding under the commercial paper program. average interest rate on its total borrowings is approximately 3.8%.
Carrier 2023 Annual Report 45
Notes to the Consolidated Financial Statements
Interest expense associated with long-term debt for the years carrying value of the Japanese Term Loan Facility associated with
ended December 31, 2023, 2022 and 2021 was $362 million, $302 foreign exchange rate movements are recorded in Equity in the
million and $319 million, respectively. Consolidated Balance Sheet.
In connection with the acquisition of the VCS Business, the
Note 8: Fair Value Measurements Company entered into window forward contracts with Bank of
America N.A. and JPMorgan Chase Bank N.A. to mitigate the
ASC 820, Fair Value Measurement (“ASC 820”), defines fair value foreign currency risk of the expected cash outflows associated
as the price that would be received if an asset is sold or the price with the Euro-denominated purchase price. The instruments have
paid to transfer a liability in an orderly transaction between market an aggregate notional amount of €7 billion and are measured at
participants at the measurement date. ASC 820 also establishes a fair value on a recurring basis using observable market inputs,
three-level fair value hierarchy that prioritizes information used in such as forward, discount and interest rates with changes in fair
developing assumptions when pricing an asset or liability as follows: value reported in Other income (expense), net in the accompanying
• Level 1: Observable inputs such as quoted prices in active Consolidated Statement of Operations. During the year ended
markets; December 31, 2023, the Company recognized a $96 million loss on
• Level 2: Inputs, other than quoted prices in active markets, the mark-to-market valuation of its window forward contracts. The
that are observable either directly or indirectly; and Company settled the window forward contracts on January 2, 2024
• Level 3: Unobservable inputs where there is little or no upon the acquisition of the VCS Business.
market data, which requires the reporting entity to develop During 2023, the Company entered into several interest rate swap
its own assumptions. contracts to mitigate interest rate exposure on the forecasted
ASC 820 requires the use of observable market data, when available, issuance of long-term debt. The contracts had an aggregate
in making fair value measurements. When inputs used to measure fair notional amount of $1.525 billion and were designated as cash
value fall within different levels of the hierarchy, the level within which flow hedges with changes in fair value reported in Equity in
the fair value measurement is categorized is based on the lowest the accompanying Consolidated Balance Sheet. Fair value was
level input that is significant to the fair value measurement. measured on a recurring basis using observable market inputs,
such as forward, discount and interest rates. In November 2023,
In the normal course of business, the Company is exposed to the contracts were settled upon the issuance of the underlying
certain risks arising from business operations and economic debt. As a result, the Company deferred a net unrecognized gain
factors, including foreign currency and commodity price risk. These of $58 million in Equity which will be subsequently recognized in
exposures are managed through operational strategies and the Interest expense over the term of the related notes which range
use of undesignated hedging contracts. The Company’s derivative from 2034 to 2044. The amount expected to be amortized over the
assets and liabilities are measured at fair value on a recurring basis next twelve months is a net gain of $3 million.
using internal models based on observable market inputs, such as
forward, interest, contract and discount rates with changes in fair The following tables provide the valuation hierarchy classification
value reported in Other income (expense), net in the accompanying of assets and liabilities that are recorded at fair value and
Consolidated Statement of Operations. measured on a recurring basis in the accompanying Consolidated
Balance Sheet:
In connection with the TCC acquisition, the Company funded a
portion of the Yen-denominated purchase price with cash on hand by (In millions) Total Level 1 Level 2 Level 3
entering into cross currency swaps with various financial institutions. December 31, 2023
The cross currency swaps are measured at fair value on a recurring
Fair value measurement:
basis using observable market inputs, such as forward, discount and
interest rates as well as credit default swap spreads. The Company Derivative assets (1)(3) $ 32 $— $ 32 $—
designated the cross currency swaps as a partial hedge of its Derivative liabilities (2)(3)
$ (126) $— $ (126) $—
investment in certain subsidiaries whose functional currency is the
Japanese Yen in order to manage foreign currency translation risk. As
a result, changes in the fair value of the swaps are recorded in Equity December 31, 2022
in the accompanying Consolidated Balance Sheet. Fair value measurement:
The remaining portion of the Yen-denominated purchase price was Derivative assets (1) (3) $ 28 $— $ 28 $—
funded by the Japanese Term Loan Facility. The carrying value of
Derivative liabilities (2)(3)
$ (48) $— $ (48) $—
the facility is translated on a recurring basis using the exchange
rate at the end of the applicable period and approximates its fair (1)
Included in Other assets, current and Other assets on the accompanying
value. The Company designated the Japanese Term Loan Facility Consolidated Balance Sheet.
as a partial hedge of its investment in certain subsidiaries whose
(2)
Included in Accrued liabilities and Other long-tern liabilities on the
accompanying Consolidated Balance Sheet.
functional currency is the Japanese Yen in order to manage (3)
Includes cross currency swaps, window forward contracts and interest rate
foreign currency translation risk. As a result, changes in the swap contracts.
46 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
The following table provides the carrying amounts and fair values Supplemental cash flow and lease expense information related to
of the Company’s long-term notes that are not recorded at fair operating leases were as follows:
value in the accompanying Consolidated Balance Sheet:
(In millions) 2023 2022 2021
2023 2022 Operating cash flows for measurement $166 $145 $197
Carrying Fair Carrying Fair of operating lease liabilities
(In millions) Amount Value Amount Value Operating lease ROU assets obtained $ 63 $109 $180
Total long-term notes (1) $13,951 $13,194 $8,350 $6,832 in exchange for operating lease
obligations
(1)
Excludes debt discount and issuance costs.
Operating lease expense $158 $148 $200
The fair value of the Company’s long-term debt is measured based
on observable market inputs which are considered Level 1 within the Operating lease expense is recognized on a straight-line basis over
fair value hierarchy. The carrying value of cash and cash equivalents, the lease term. In addition, the Company has certain leases that
accounts receivable, accounts payable and short-term borrowings contain variable lease payments which are based on an index, a rate
approximate fair value due to the short-term nature of these referenced in the lease or on the actual usage of the leased asset.
accounts and would be classified as Level 1 in the fair value hierarchy. These payments are not included in the right-of-use asset or lease
The Company’s financing leases and project financing obligations, liability and are expensed as incurred as variable lease expense.
included in Long-term debt and Current portion of long-term debt
Undiscounted maturities of operating lease liabilities as of
on the accompanying Consolidated Balance Sheet, approximate fair
December 31, 2023 are as follows:
value and are classified as Level 3 in the fair value hierarchy.
(In millions)
Note 9: Leases 2024 $126
2025 107
The Company enters into operating and finance leases for the use
2026 87
of real estate space, vehicles, information technology equipment
and certain other equipment. At contract inception, the Company 2027 62
determines a lease exists if the arrangement conveys the right 2028 45
to control an identified asset for a period of time in exchange Thereafter 149
for consideration. Control is considered to exist when the lessee
Total undiscounted lease payments 576
has the right to obtain substantially all of the economic benefits
Less: imputed interest (77)
from the use of an identified asset as well as the right to direct
the use of that asset. If a contract is considered to be a lease, the Total discounted lease payments $499
Company recognizes a lease liability based on the present value
of the future lease payments with an offsetting entry to recognize
Note 10: Employee Beneft Plans
a right-of-use asset.
Operating lease right-of-use assets and liabilities are reflected on The Company sponsors U.S. and international defined benefit
the Consolidated Balance Sheet as follows: pension and defined contribution plans. In addition, the Company
contributes to various U.S. and international multi-employer
(In millions) 2023 2022 defined benefit pension plans.
Operating lease right-of-use assets $ 491 $ 642
Pension Plans
Accrued liabilities $(108) $(132)
Qualified U.S. pension plan benefits covering collectively bargained
Operating lease liabilities (391) (529)
employees comprise approximately 42% of the projected benefit
Total operating lease liabilities $(499) $(661) obligation. This noncontributory defined benefit plan provides
benefits on a flat dollar formula based on an employee’s location
Weighted-Average Remaining 7.0 7.7 and is closed to new entrants. The non-U.S. plans comprise
Lease Term (in years) approximately 58% of the projected benefit obligation; certain of
Weighted-Average Discount Rate 3.9% 3.4% these plans provide participants with one-time payments upon
separation of employment rather than a retirement annuity. The
plans’ benefits provided are based on plan specific parameters.
Where applicable, the Company accounts for each separate lease Non-qualified U.S. pension plans provide supplementary retirement
component of a contract and its associated non-lease component benefits to certain employees and are not a material component of
as a single lease component. the projected benefit obligation.
Carrier 2023 Annual Report 47
Notes to the Consolidated Financial Statements
The following table details information regarding the Company’s The pretax amounts recognized in Accumulated other
pension plans: comprehensive (income) loss are:
(In millions) 2023 2022 Prior Net
Service Cost Actuarial
Change in Beneft Obligation (In millions) (Benefit) (Gain) Loss Total
Benefit obligation at beginning of year $ 760 $ 906 As of December 31, 2022 $11 $ 93 $104
Service cost 15 20
Current year changes — 20 20
Interest cost 31 18 recorded in AOCI
Actuarial (gain) loss 27 (271) Amortization (2) 1 (1)
reclassified to earnings
Benefits paid (25) (21)
Settlement/curtailment (3) 1 (2)
Curtailment, settlements and special (24) (7) reclassified to earnings
termination benefits
Currency translation and other — 5 5
Other, including expenses paid 3 (38)
As of December 31, 2023 $ 6 $120 $126
Reclassified to held for sale (1) (212) —
Acquisitions (2) — 153
Benefit obligation at end of year $ 575 $ 760 Information for pension plans with accumulated benefit
Change in Plan Assets obligations in excess of plan assets:
Fair value at beginning of year $ 451 $ 591
(In millions) 2023 2022
Actual return on plan assets 39 (170)
Projected benefit obligation $378 $564
Company contributions 33 16
Accumulated benefit obligation $362 $538
Benefits paid (25) (21)
Fair value of plan assets $239 $230
Settlements (24) (7)
Other, including expenses paid 2 (18)
Reclassified to held for sale (1) (8) — Information for pension plans with projected benefit obligations in
excess of plan assets:
Acquisitions (2)
— 60
Fair value of assets end of year $ 468 $ 451 (In millions) 2023 2022
Funded status of plans $(107) $(309) Projected benefit obligation $378 $564
Amounts included in the balance sheet: Accumulated benefit obligation $362 $538
Other non-current assets $ 32 $ 25 Fair value of plan assets $239 $230
Accrued compensation and benefits (12) (18)
Post-employment and other benefit (127) (316)
liabilities The accumulated benefit obligation for all defined benefit plans
was $0.6 billion and $0.7 billion as of December 31, 2023 and 2022,
Net amount recognized $(107) $(309)
respectively.
(1)
See Note 20 - Divestitures for additional information.
(2)
See Note 19 - Acquisitions for additional information.
The change in funded status was primarily driven by the
presentation of the Company’s CCR business as held for sale. In
addition, the discount rates for our significant pension plans in
Germany and the U.S. decreased over the measurement period,
resulting in higher benefit obligations.
48 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Pension benefit payments, including amounts to be paid from The expected long-term rate of return on plan assets is
corporate assets, and reflecting expected future service, as determined by considering the relative weighting of plan assets,
appropriate, are expected to be paid as follows: the historical performance of total plan assets, individual asset
classes, economic and other indicators of future performance.
(In millions) Return projections are assessed for reasonableness using a
2024 $ 31 simulation model that incorporates yield curves, credit spreads and
2025 $ 33 risk premiums to project long-term prospective returns.
2026 $ 37 The Company’s investment objective is to provide liquidity and
2027 $ 42 asset levels needed to meet current and future benefit payments,
2028 $ 38 while maintaining a prudent degree of portfolio diversification
considering interest rate risk and market volatility. Globally,
2029 through 2033 $201
investment strategies target a mix of approximately 30% of growth
seeking assets and 70% of income generating and hedging assets
For the years ended December 31, 2023, 2022 and 2021, the
using a wide diversification of asset types, fund strategies and
Company made $33 million, $16 million and $47 million, respectively,
investment managers.
of cash contributions to its defined benefit pension plans. The
Company expects to make total contributions of approximately The growth seeking allocation consists of global public equities
$5 million to its defined benefit pension plans in 2024. in developed and emerging countries and alternative asset class
strategies. The income generating assets primarily consist of
The components of net periodic pension expense (benefit) for the
government and broadly diversified high quality corporate bonds.
defined benefit pension plans are as follows:
In addition, the Company’s investment strategies seek to reduce
interest rate risk and have incorporated liability hedging programs
(In millions) 2023 2022 2021
as part of the long-term investment strategy. Under this objective,
Service cost $15 $ 20 $ 27 the income generating and hedging assets typically increase as the
Interest cost 31 18 37 plans’ funded status improves. The Company monitors plan funded
Expected return on plan assets status and asset allocation regularly in addition to investment
(32) (27) (145)
manager performance.
Amortization of prior service cost 3 2 2
Recognized actuarial net loss (2) 9 32
Net settlement, curtailment and 1 2 13
special termination benefit loss
Net periodic pension expense $16 $ 24 $ (34)
(beneft)
Major assumptions used in determining the benefit obligation and
net cost for pension plans are presented in the following table as
weighted-averages:
Benefit Obligation Net Costs
2023 2022 2023 2022 2021
Discount rate
Projected benefit 4.3% 4.2% 4.2% 2.1% 1.4%
obligation
Interest cost (1) —% —% 4.1% 1.9% 1.2%
Service cost (1) —% —% 4.5% 2.8% 2.1%
Salary scale 2.2% 2.4% 2.4% 3.1% 2.8%
Expected return on —% —% 5.7% 5.0% 4.6%
plan assets
(1)
The 2023 and 2022 discount rates used to measure the service cost and
interest cost applies to the significant plans of the Company. The projected
benefit obligation discount rate is used for the service cost and interest cost
measurements for non-significant plans.
Carrier 2023 Annual Report 49
Notes to the Consolidated Financial Statements
The fair values of pension plan assets by asset category are as follows:
Quoted Prices in Significant Significant Not
Active Markets for Observable Unobservable Subject
(In millions) Identical Assets Inputs Inputs to Leveling Total
Asset Category (Level 1) (Level 2) (Level 3)
Public Equities:
Global Equities $— $ 26 $— $ — $ 26
Global Equity Funds at net asset value (1)
— — — 125 125
Fixed Income Securities:
Governments — 40 — 23 63
Corporate Bonds — 44 — — 44
Fixed Income Securities (2)
— 9 — 172 181
Real Estate (3)
— 1 — — 1
Other (4)(5)
— 10 — — 10
Cash & Cash Equivalents (2)(6)
— 13 — 3 16
Subtotal $— $143 $— $323 $466
Other assets and liabilities (7)
2
Total as of December 31, 2023 $468
Quoted Prices in Significant Significant Not
Active Markets for Observable Unobservable Subject
(In millions) Identical Assets Inputs Inputs to Leveling Total
Asset Category (Level 1) (Level 2) (Level 3)
Public Equities:
Global Equities $— $ 27 $— $ — $ 27
Global Equity Funds at net asset value (1)
— — — 119 119
Fixed Income Securities:
Governments — 35 — 24 59
Corporate Bonds — 45 — — 45
Fixed Income Securities (2)
— 11 — 156 167
Real Estate (3)
— 1 — — 1
Other (4)(5)
— 8 — — 8
Cash & Cash Equivalents (2)(6)
— 25 — 1 26
Subtotal $— $152 $— $300 $452
Other assets and liabilities (7)
(1)
Total as of December 31, 2022 $451
(1)
Represents commingled funds that invest primarily in common stocks.
(2)
In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share
(or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit
reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets.
(3)
Represents investments in real estate, including commingled funds and directly held properties.
(4)
Represents insurance contracts and global balanced risk commingled funds consisting mainly of equity, bonds and some commodities.
(5)
Includes fixed income repurchase agreements entered into for purposes of pension asset and liability matching.
(6)
Represents short-term commercial paper, bonds and other cash or cash-like instruments.
(7)
Represents trust receivables and payables that are not leveled.
50 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Derivatives in the plan are primarily used to manage risk and becomes available that suggests it is probable that future costs
gain asset class exposure while still maintaining liquidity. will be different than estimated amounts. Amounts associated with
Derivative instruments mainly consist of fixed income repurchase these provisions are classified on the accompanying Consolidated
agreements, interest rate swaps, total return swaps and currency Balance Sheet as Accrued liabilities or Other long-term liabilities
forward contracts. based on their anticipated settlement date.
Quoted market prices are used to value investments when The changes in the carrying amount of warranty related provisions
available. Investments in securities traded on exchanges, including are as follows:
listed futures and options, are valued at the last reported sale
prices on the last business day of the year or, if not available, the (In millions) 2023 2022
last reported bid prices. Fixed income securities are primarily Balance as of January 1, $551 $524
measured using a market approach pricing methodology, whereby Warranties, performance guarantees 237 184
observable prices are obtained by market transactions involving issued and changes in estimated liability
identical or comparable securities of issuers with similar credit Settlements made (194) (171)
ratings. Over-the-counter securities and government obligations Other (13) 14
are valued at the bid prices or the average of the bid and ask prices Reclassified to held for sale (1)
(13) —
on the last business day of the year from published sources or, if
Balance as of December 31, $568 $551
not available, from other sources considered reliable, including
broker quotes. Temporary cash investments are stated at cost, (1)
See Note 20 - Divestitures for additional information.
which approximates fair value.
Note 12: Equity
Multiemployer Beneft Plans
The Company contributes to various domestic and foreign The authorized number of shares of common stock of Carrier
multiemployer defined benefit pension plans. The risks of is 4,000,000,000 shares of $0.01 par value. As of December 31,
participating in these multiemployer plans are different from 2023 and December 31, 2022, 883,068,393 and 876,487,480
those of single-employer plans in that assets contributed are shares of common stock were issued, respectively, which includes
pooled and may be used to provide benefits to employees of 43,490,981 and 42,103,995 shares of treasury stock, respectively.
other participating employers. If a participating employer stops
contributing to the plan, the unfunded obligations of the plan may Share Repurchase Program
be borne by the remaining participating employers. The Company’s The Company may purchase its outstanding common stock from
contributions to these plans for the years ended December 31, time to time subject to market conditions and at the Company’s
2023 and 2022 was $15 million and $15 million, respectively. discretion. Repurchases occur in the open market or through one
or more other public or private transactions pursuant to plans
Employee Savings Plans complying with Rules 10b5-1 and 10b-18 under the Exchange Act.
The Company sponsors various employee savings plans. Employer Shares acquired are recognized at cost and presented separately
contributions are determined based on criteria specific to each on the balance sheet as a reduction to Equity. Since the initial
plan and were $125 million, $123 million and $115 million for the year authorization in February 2021, the Company’s Board of Directors
ended December 31, 2023, 2022 and 2021, respectively. authorized the repurchase of up to $4.1 billion of the Company’s
outstanding common stock.
Note 11: Product Warranties As of December 31, 2023, the Company repurchased 43.5
million shares of common stock for an aggregate purchase
In the ordinary course of business, the Company provides standard price of $2.0 billion, which includes shares repurchased under
warranty coverage on its products. Provisions for these amounts an accelerated share repurchase agreement. As a result, the
are established at the time of sale and estimated primarily based Company has approximately $2.1 billion remaining under the
on product warranty terms and historical claims experience. current authorization at December 31, 2023. Upon announcement
In addition, the Company incurs discretionary costs to service of the proposed acquisition of the VCS Business, the Company
its products in connection with specific product performance temporarily paused its share repurchase program in order to
issues. Provisions for these amounts are established when they advance its capital allocation strategy. As a result, there is no share
are known and estimable. The Company assesses the adequacy repurchase activity to report for the fourth quarter of 2023.
of its initial provisions and will make adjustments as necessary
based on known or anticipated claims or as new information
Carrier 2023 Annual Report 51
Notes to the Consolidated Financial Statements
Accumulated Other Comprehensive Income (Loss)
A summary of changes in the components of Accumulated other comprehensive income (loss) is as follows:
Defined Benefit Accumulated
Foreign Pension and Unrealized Other
Currency Post-retirement Hedging Gains Comprehensive
(In millions) Translation Plans (Losses) Income (Loss)
Balance as of January 1, 2021 $ (191) $(554) $ — $ (745)
Other comprehensive income (loss) before reclassifications, net (322) 53 — (269)
Amounts reclassified, pre-tax 8 34 — 42
Tax benefit reclassified — (17) — (17)
Balance as of December 31, 2021 $ (505) $(484) $ — $ (989)
Other comprehensive income (loss) before reclassifications, net (525) 63 — (462)
Amounts reclassified, pre-tax — 11 — 11
Tax benefit reclassified — (3) — (3)
Chubb divestiture (574) 329 — (245)
Balance as of December 31, 2022 $ (1,604) $ (84) $ — $ (1,688)
Other comprehensive income (loss) before reclassifications, net 160 (17) 58 201
Amounts reclassified, pre-tax — 1 — 1
Balance as of December 31, 2023 $(1,444) $(100) $58 $(1,486)
Note 13: Revenue Recognition most commonly when a contract spans multiple phases of a
product life-cycle such as production, installation, maintenance
The Company accounts for revenue in accordance with ASC 606: and support. The Company identifies performance obligations at
Revenue from Contracts with Customers. Revenue is recognized the inception of a contract and allocates the transaction price
when control of a good or service promised in a contract (i.e., to each distinct performance obligation. Revenue is recognized
performance obligation) is transferred to a customer. Control when or as the performance obligation is satisfied. When there are
is obtained when a customer has the ability to direct the use multiple performance obligations within a contract, the Company
of and obtain substantially all of the remaining benefits from allocates the transaction price to each performance obligation
that good or service. A significant portion of the Company’s based on its relative stand-alone selling price.
performance obligations are recognized at a point-in-time The Company primarily generates revenue from the sale of
when control of the product transfers to the customer, which products to customers and recognizes revenue at a point in
is generally the time of shipment. The remaining portion of the time when control transfers to the customer. Transfer of control
Company’s performance obligations are recognized over time is generally based on the shipping terms of the contract. In
as the customer simultaneously obtains control as the Company addition, the Company recognizes revenue on an over-time basis
performs work under a contract, or if the product being produced on installation and service contracts. For over-time performance
for the customer has no alternative use and the Company has a obligations requiring the installation of equipment, revenue is
contractual right to payment. recognized using costs incurred to date relative to total estimated
costs at completion to measure progress. Incurred costs represent
Perormance Obligations work performed, which correspond with and best depict transfer of
A performance obligation is a distinct good, service or a bundle control to the customer. Contract costs include direct costs such
of goods and services promised in a contract. Some of the as labor, materials and subcontractors’ costs and where applicable,
Company’s contracts with customers contain a single performance indirect costs.
obligation, while others contain multiple performance obligations
52 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Segment sales disaggregated by product and service are as follows: The timing of revenue recognition, billings and cash collections
results in contract assets and contract liabilities. Contract assets
(In millions) 2023 2022 2021 relate to the conditional right to consideration for any completed
Sales Type performance under a contract when costs are incurred in excess
of billings under the percentage-of-completion methodology.
Product $13,313 $11,882 $ 9,985
Contract liabilities relate to payments received in advance of
Service 1,826 1,526 1,405 performance under a contract or when the Company has a right
HVAC sales 15,139 13,408 11,390 to consideration that is conditioned upon transfer of a good or
service to the customer. Contract liabilities are recognized as
revenue as (or when) the Company performs under the contract.
Product 3,352 3,432 3,653
The Company recognized revenue of $347 million for the year
Service 466 451 474
ended December 31, 2023 that was related to contract liabilities as
Refrigeration sales 3,818 3,883 4,127 of January 1, 2023. The Company expects a majority of its contract
liabilities at the end of the period to be recognized as revenue
over the next 12 months. There were no individually significant
Product 3,384 3,372 3,985
customers with sales exceeding 10% of total sales for the years
Service 249 198 1,530 ended December 31, 2023, 2022 and 2021.
Fire & Security sales 3,633 3,570 5,515
Total segment sales 22,590 20,861 21,032 Note 14: Stock-Based Compensation
The Company accounts for stock-based compensation plans in
Eliminations and other (492) (440) (419) accordance with ASC 718, Compensation - Stock Compensation,
Consolidated $22,098 $20,421 $20,613
which requires a fair-value based method for measuring the value
of stock-based compensation. Fair value is measured at the date
of grant and is generally not adjusted for subsequent changes. The
The transaction price allocated to performance obligations Company’s stock-based compensation plans include programs
reflects the Company’s expectations about the consideration for stock appreciation rights, restricted stock and performance
it will be entitled to receive from a customer. The Company share units.
includes variable consideration in the estimated transaction
price when there is a basis to reasonably estimate the amount Stock Options and Appreciation Rights
and when it is probable that a significant reversal of revenue
recognized would not occur when the uncertainty associated Eligible participants may receive stock options or stock
with variable consideration is subsequently resolved. In addition, appreciation rights as part of the Company’s long-term incentive
the Company customarily offers its customers incentives to program. The fair value of each instrument is determined as of
purchase products to ensure an adequate supply of its products the date of grant using a binomial lattice model and expensed
in distribution channels. The principal incentive programs provide on a straight-line basis over the required service period, which
reimbursements to distributors for offering promotional pricing is generally a three-year vesting period. However, in the event
for products. The Company accounts for estimated incentive of retirement, awards held for at least one year may vest and
payments as a reduction in sales at the time a sale is recognized. become exercisable (if applicable), subject to certain terms
and conditions.
Contract Balances
Total contract assets and liabilities consisted of the following:
(In millions) 2023 2022
Contract assets, current $ 306 $537
Contract assets, non-current (included within 26 6
Other assets)
Total contract assets 332 543
Contract liabilities, current (425) (449)
Contract liabilities, non-current (included (160) (174)
within Other long-term liabilities)
Total contract liabilities (585) (623)
Net contract assets (liabilities) $(253) $ (80)
Carrier 2023 Annual Report 53
Notes to the Consolidated Financial Statements
The following table summarizes fair value information for stock options and stock appreciation rights:
2023(1) 2022(1) 2021(1)
Stock options and stock appreciation rights weighted-average fair value per award $11.64 $10.68 $10.13
Assumptions:
Volatility 30.9% 30.8% to 31.3% 31.6% to 34.1%
Expected term (in years) 5.8 6.1 6.6
Expected dividend yield 1.8% 1.5% 1.5%
Range of risk-free rates 3.6% 1.7% to 3.0% 0.7% to 1.4%
(1)
Carrier has limited historical trading data and used peer group data to estimate expected volatility for the 2023, 2022 and 2021 awards.
The Company used historical employee data, including data the term structure of interest rates at the time the awards
prior to the Separation and the Distribution, to estimate were granted.
expected term. The expected dividend yield is consistent with
Changes in stock options and stock appreciation rights
management’s expectations. The risk-free rate is based on
outstanding were as follows:
Aggregate Weighted-
Shares Subject to Weighted- Intrinsic Average
Option Average Value Remaining Life
(in thousands) Exercise Price (in millions) (in years)
As of December 31, 2020 36,732 $19.91
Granted 3,194 $38.92
Exercised (5,934) $17.59
Cancelled (1,551) $23.98
As of December 31, 2021 32,441 $22.02
Granted 2,715 $47.72
Exercised (3,495) $17.76
Cancelled (883) $30.33
As of December 31, 2022 30,778 $24.53
Granted 3,494 $46.13
Exercised (8,432) $20.48
Cancelled (769) $42.94
Outstanding as of December 31, 2023 25,071 $28.34 $730 5.8
Exercisable as of December 31, 2023 17,662 $22.05 $625 4.8
Restricted Stock Units on a straight-line basis over the required service period (which is
generally a three-year vesting period). However, in the event of
Eligible participants may receive restricted stock units (“RSU”) as
retirement, awards held for at least one year may vest and become
part of the Company’s long-term incentive program. The fair value
exercisable (if applicable), subject to certain terms and conditions.
of restricted stock units are based on the closing market price of
Dividends accrue during the vesting period and are paid in shares
the Company’s common stock on the date of grant and expensed
of the Company’s common stock.
54 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Changes in restricted stock units were as follows: Changes in PSUs were as follows:
Weighted- Weighted-
RSUs Average Grant PSUs Average Grant
(in thousands) Date Fair Value (in thousands) Date Fair Value
Outstanding and unvested as of 5,574 $ 21.57 Outstanding and unvested as 772 $ 18.46
December 31, 2020 of December 31, 2020
Granted 286 $ 46.49 Granted 821 $ 41.48
Vested (2,168) $ 21.45 Vested (20) $ 23.72
Cancelled (122) $ 25.39 Forfeited (152) $ 27.28
Outstanding and unvested as of 3,570 $ 23.33 Outstanding and unvested as 1,421 $ 30.75
December 31, 2021 of December 31, 2021
Granted 555 $ 41.88 Granted 653 $ 46.93
Vested (1,915) $ 20.85 Vested (5) $ 41.81
Cancelled (143) $ 32.92 Forfeited (139) $ 35.45
Outstanding and unvested as of 2,067 $ 29.87 Outstanding and unvested as 1,930 $ 35.86
December 31, 2022 of December 31, 2022
Granted 577 $ 45.71 Granted 902 $ 47.93
Vested (1,140) $ 26.09 Vested (607) $ 18.23
Cancelled (161) $ 35.09 Forfeited (183) $ 46.52
Outstanding and unvested as of 1,343 $39.22 Outstanding and unvested as 2,042 $45.47
December 31, 2023 of December 31, 2023
Perormance Share Units Compensation Expense
The Company has a performance share program for key employees Stock-based compensation expense, net of estimated
whereby awards are provided in the form of performance share forfeitures, is included in Cost of products sold, Selling, general
units (“PSU”) based on performance against pre-established and administrative and Research and development, in the
objectives. The annual target level is expressed as shares of accompanying Consolidated Statement of Operations.
the Company’s common stock based on the fair value of its
Stock-based compensation cost by award type are as follows:
stock on the date of grant. Awards are earned over a three-year
performance period based equally on a performance condition, (In millions) 2023 2022 2021
measured by the compound annual growth rate of the Company’s
Equity compensation costs - equity $81 $77 $ 92
earnings per share and on a market condition, measured by the settled
Company’s relative total shareowner return compared to the total
Equity compensation costs - cash 3 (15) 19
shareowner return of a subset of industrial companies in the S&P settled (1)
500 Index. The fair value of the market condition is estimated Total stock-based $84 $62 $111
using a Monte Carlo simulation approach. The fair value of the PSU compensation cost
awards are expensed over the required service period, which is
generally a three-year vesting period. In the event of retirement,
Income tax beneft $11 $ 9 $ 13
performance share units held for at least one year remain eligible
to vest based on actual performance relative to pre-established
(1)
The cash settled awards are classified as liability awards and are measured at
fair value at each balance sheet date.
metrics. Dividends do not accrue on the performance share units
during the performance period.
As of December 31, 2023 and 2022, there were $76 million
and $64 million of unrecognized stock-based compensation
costs related to non-vested awards granted under the plan,
respectively, which will be recognized ratably over the awards
weighted-average remaining vesting period of 2 years.
Carrier 2023 Annual Report 55
Notes to the Consolidated Financial Statements
Note 15: Restructuring Costs Note 16: Other Income (Expense), Net
The Company incurs costs associated with restructuring initiatives Other income (expense), net consisted of the following:
intended to improve operating performance, profitability and
working capital levels. Actions associated with these initiatives (In millions) 2023 2022 2021
may include improving productivity, workforce reductions and the Impairment charge on minority-owned $ — $ — $ (2)
consolidation of facilities. Due to the size, nature and frequency joint venture investments
of these discrete plans, they are fundamentally different from the Viessmann-related hedges (96) — —
Company’s ongoing productivity initiatives. KFI deconsolidation (297) — —
The Company recorded net pre-tax restructuring costs for new TCC acquisition-related gain (8) 705 —
and ongoing restructuring actions as follows: Chubb gain — 1,105 —
Other 17 30 41
(In millions) 2023 2022 2021
Other income (expense), net $(384) $1,840 $39
HVAC $44 $ 8 $33
Refrigeration 21 10 25
Other income (expense), net primarily includes the impact of
Fire & Security 22 11 26
gains and losses related to the sale of businesses or interests in
Total Segment 87 29 84 equity method investments, foreign currency gains and losses
General corporate expenses 10 2 5 on transactions that are denominated in a currency other than
Total restructuring costs $97 $31 $89 the entity’s functional currency and hedging-related activities.
In connection with the proposed acquisition of the VCS Business,
the Company recognized a $96 million loss during the year ended
Cost of sales $18 $ 9 $28
December 31, 2023 on the mark-to-market valuation of our window
Selling, general and administrative 79 22 60
forward contracts associated with the expected cash outflows of
Other income (expense), net — — 1 the Euro-denominated purchase price. In addition, the Company
Total restructuring costs $97 $31 $89 recognized a loss of $297 million on the deconsolidation of KFI due
to its Chapter 11 filing.
The following table summarizes changes in the restructuring In connection with the TCC acquisition, the carrying value of
reserve, included in Accrued liabilities on the accompanying the Company’s previously held TCC equity investments were
Consolidated Balance Sheet: recognized at fair value at the date of acquisition. As a result, the
Company recognized a $697 million non-cash gain associated with
(In millions) 2023 2022 the increase in our ownership interest. In addition, the Company
Balance as of January 1, $ 24 $ 54 completed the Chubb Sale and recognized a net gain on the sale
of $1.1 billion during the twelve months ended December 31, 2022.
Net pre-tax restructuring costs 97 31
Utilization, foreign exchange and other (58 ) (61)
Note 17: Income Taxes
Reclassified to held for sale (1) (8) —
Balance as of December 31, $ 55 $ 24 Income Before Income Taxes
(1)
See Note 20 - Divestitures for additional information.
The sources of Income from operations before income taxes are
as follows:
As of December 31, 2023, the Company had $55 million accrued
for costs associated with its announced restructuring initiatives. (In millions) 2023 2022 2021
The balance relates to cost reduction efforts, primarily severance, United States $1,311 $ 1,876 $1,528
across each of the Company’s segments. In addition, reserves Foreign 773 2,416 872
associated with the Company’s planned portfolio transformation
Total $2,084 $4,292 $2,400
were established during the year, all of which are expected to be
paid within 12 months.
56 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Provision for Income Taxes The effective tax rate for the year ended December 31, 2022 was
lower than the Company’s statutory U.S. federal income tax rate.
The income tax expense (benefit) consisted of the following
The decrease was driven by a lower effective tax rate on the
components:
$705 million non-cash gain resulting from the recognition of the
Company’s previously held TCC equity investments at fair value
(In millions) 2023 2022 2021
upon acquisition of TCC, a lower effective tax rate on the $1.1 billion
Current:
Chubb gain and $45 million of foreign tax credits generated and
United States: utilized in the current year.
Federal $ 412 $ 453 $ 336
The effective tax rate for the year ended December 31, 2021 was
State 124 120 83
higher than the Company’s statutory U.S. federal income tax
Foreign 341 259 354 rate. The increase was driven by a net tax charge of $157 million
877 832 773 primarily relating to the re-organization and disentanglement of
Future: certain Chubb subsidiaries executed in advance of the planned
United States:
divestiture of the Chubb business and a $43 million deferred tax
charge associated with a tax rate increase in the United Kingdom
Federal (138) (23) (125)
enacted on June 10, 2021 with an effective date of April 2023. These
State (33) (29) (14) amounts were partially offset by the recognition of a favorable tax
Foreign (62) (72) 65 adjustment of $70 million due to foreign tax credits generated and
(233) (124) (74) expected to be utilized in the current year and $21 million resulting
Income tax expense $ 644 $ 708 $ 699 from the re-organization of a German subsidiary.
Deferred Tax Assets and Liabilities
Reconciliation of Efective Income Tax Rate
Future income taxes represent the tax effects of transactions,
The differences between the effective income tax rate and the which are reported in different periods for tax and GAAP purposes.
statutory U.S. federal income tax rate are as follows: These amounts consist of the tax effects of differences between
tax and GAAP that are expected to be reversed in the future and
2023 2022 2021 tax carryforwards. Future income tax benefits and payables within
Statutory U.S. federal income 21.0% 21.0% 21.0% the same tax paying component of a particular jurisdiction are
tax rate offset for presentation in the Consolidated Balance Sheet.
State income tax 2.7 1.5 1.9
The tax effects of temporary differences and tax carryforwards
Taxes on international activities 6.3 (1.0) 7.2 which give rise to future income tax benefits and payables as of
TCC acquisition impact — (4.2) — December 31, 2023 and 2022 are as follows:
Other 0.9 (0.8) (1.0)
(In millions) 2023 2022
Efective income tax rate 30.9% 16.5% 29.1% Future income tax benefits:
Insurance and employee benefits $ 158 $ 161
The effective tax rate for the year ended December 31, 2023 was Other assets basis differences 420 284
higher than the Company’s statutory U.S. federal income tax rate. Other liabilities basis differences 547 571
The increase was primarily driven by a net tax charge of $90 million Tax loss carryforwards 185 177
relating to the re-organization and disentanglement of CCR and Tax credit carryforwards 1,333 29
certain Fire & Security industrial businesses in advance of the
Valuation allowances (1,399) (100)
planned divestitures and a deferred tax charge of $65 million
related to basis differences in certain companies presented as Future income tax beneft $ 1,244 $1,122
held-for-sale. In addition, the effective tax rate was impacted
by the recognition of a deferred tax liability for withholding tax Future income tax payables:
of $33 million on repatriated foreign earnings, non-deductible Goodwill and intangible assets $ (412) $ (449)
divestiture-related costs and a non-deductible loss of $96 million
Other asset basis differences (388) (395)
on the mark-to-market valuation of the Company’s window
Future income tax payables $ (800) $ (844)
forward contracts associated with the expected cash outflows
of the Euro-denominated purchase price of the VCS Business.
The unfavorable impact of the above items is partially offset Valuation allowances have been established primarily for tax
by a $53 million tax benefit recorded from the announced credit carryforwards, tax loss carryforwards and certain foreign
KFI bankruptcy and deconsolidation and $49 million of foreign temporary differences to reduce future income tax benefits to
tax credits generated and utilized in 2023. expected realizable amounts. As of December 31, 2023, future
Carrier 2023 Annual Report 57
Notes to the Consolidated Financial Statements
income tax benefits and future income tax payables exclude a including intra-entity transfers of certain intellectual property to
net liability of $9 million classified as held for sale. See Note 20 - a subsidiary in Switzerland. During 2024, the Company will begin
Divestitures for additional information. transferring certain intellectual property from wholly-owned legal
entities to the Swiss subsidiary. During the three months ended
Changes to valuation allowances consisted of the following:
December 31, 2023, the Company’s Swiss subsidiary was granted a
tax credit of approximately $1.3 billion that is immediately available
(In millions)
to offset cantonal income tax liability over a ten-year period. As
Balance as of January 1, 2021 $ 231
the Company is in the preliminary stages of the reorganization,
Additions charged to income tax expense 32 a full valuation allowance was recorded against this tax credit.
Reduction credited to income tax expense (22) As operations in the Swiss subsidiary expand in future years it
will be necessary to reassess the estimated realizable tax benefit
Other adjustments (41)
associated with the tax credit.
Reclassified to held for sale (110)
Balance at December 31, 2021 $ 90 Unrecognized Tax Benefts
Additions charged to income tax expense 18 As of December 31, 2023, the Company had unrecognized tax
Reduction credited to income tax expense (22)
benefits of $382 million, all of which, if recognized, would impact
its effective tax rate. A reconciliation of the beginning and ending
Other adjustments 14
amounts of unrecognized tax benefits and related interest expense
Balance at December 31, 2022 $ 100 is as follows:
Additions charged to income tax expense 27
(In millions) 2023 2022 2021
Reduction credited to income tax expense (22)
Balance at beginning of period $ 291 $251 $162
Other adjustments(1) 1,303 Additions for tax positions related to
Reclassified to held for sale (9) the current year 37 34 86
Additions for tax positions of
Balance as of December 31, 2023 $1,399
prior years (1) 81 32 24
(1)
See discussion below regarding the Swiss tax credit Reductions for tax positions of
prior years — (13) (1)
Settlements (27) (13) (18)
Tax Credit and Loss Carryforwards
Reclassified to held for sale — — (2)
As of December 31, 2023, tax credit carryforwards and tax loss Balance at end of period $ 382 $291 $251
carryforwards were as follows:
Gross interest expense related to
unrecognized tax benefits $ 18 $ 16 $ 8
Tax Loss Tax Credit
(In millions) Carryforwards Carryforwards Total accrued interest balance at end
of period $ 64 $ 48 $ 35
Expiration period:
(1)
Includes $73 million during the year ended December 31, 2023 and $14 million
2024-2028 $ 70 $ 28
during the year ended December 31, 2021 related to acquisitions.
2029-2033 96 1,289
2034-2043 96 —
The Company conducts business globally and, as a result, the
Indefinite 574 16 Company and its subsidiaries file income tax returns in the
Total $836 $1,333 U.S. federal, various state and foreign jurisdictions. In certain
jurisdictions, the Company’s operations were included in UTC’s
combined tax returns for the periods through the Separation and
The Company assesses the realizability of its deferred tax assets on the Distribution. The IRS commenced an audit of UTC’s tax years
a quarterly basis through an analysis of potential sources of future 2017 and 2018 in the second quarter of 2020 and this audit is
taxable income, including prior year taxable income available expected to conclude in 2024. However, the Company expects that
to absorb a carryback of tax losses, reversals of existing taxable certain of the IRS proposed adjustments will be disputed at the
temporary differences, tax planning strategies and forecasts of Appeals Division of the IRS. The U.S. Federal statute of limitations
taxable income. The Company considers all negative and positive for UTC’s tax year 2019 expired during the three months ended
evidence, including the weight of the evidence, to determine if December 31, 2023. In the normal course of business, the Company
valuation allowances against deferred tax assets are required. The is subject to examination by taxing authorities throughout the
Company maintains valuation allowances against certain deferred world, including the U.S., Australia, Belgium, Canada, China, Czech
tax assets. Republic, France, Germany, Hong Kong, India, Italy, Japan, Mexico,
In conjunction with the announced portfolio transformation, the the Netherlands, Singapore, Thailand, and the United Kingdom.
Company is implementing changes to its corporate structure, The Company is no longer subject to U.S. federal income tax
58 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
examination for years prior to 2017 and, with few exceptions, is awards, including stock appreciation rights and stock options,
no longer subject to U.S. state and local and foreign income tax when the effect of the potential exercise would be anti-dilutive.
examinations for tax years before 2013.
The following table summarizes the weighted-average number
In the ordinary course of business, there is inherent uncertainty in of shares of common stock outstanding for basic and diluted
quantifying the Company’s income tax positions. The Company earnings per share calculations:
assesses its income tax positions and records tax benefits for
all years subject to examination based upon management’s (In millions, except per share amounts) 2023 2022 2021
evaluation of the facts, circumstances and information available Net income atributable to common $1,349 $ 3,534 $ 1,664
at the reporting date. The Company believes that it is reasonably shareowners
possible that a net decrease in unrecognized tax benefits of
$60 million to $80 million may occur within 12 months as a result of Basic weighted-average number of 837.3 843.4 867.7
additional uncertain tax positions, the revaluation of uncertain tax shares outstanding
positions arising from examinations, appeals, court decisions or the Stock awards and equity units (share 15.7 17.8 22.6
closure of tax statutes. equivalent)
Diluted weighted-average number of 853.0 861.2 890.3
In October 2021, the Organization for Economic Co-operation and shares outstanding
Development (“OECD”)/G20 finalized the significant components
of a two-pillar global tax reform plan, which has now been agreed
Antidilutive shares excluded from 2.0 2.9 0.1
to by the majority of OECD members. Pillar One allows countries to
computation of diluted earnings
reallocate amongst other taxing jurisdictions a portion of residual per share
profits earned by multinational enterprises (“MNE”), with annual
global revenue exceeding €20 billion and a profit margin over 10%.
Earnings Per Share
The adoption of Pillar One and its potential effective date remain
uncertain. Pillar Two requires MNEs with annual global revenue Basic $ 1.61 $ 4.19 $ 1.92
exceeding €750 million to pay a global minimum tax of 15%. The Diluted $ 1.58 $ 4.10 $ 1.87
Company does not currently expect the impact of Pillar Two to be
material to its effective tax rate, but the impact may be modified as
legislation is adopted. Note 19: Acquisitions
As a result of the Tax Cuts and Jobs Act (“TCJA”), the Company no
During the year ended December 31, 2023, the Company acquired
longer intends to reinvest certain undistributed earnings of its
consolidated and minority-owned businesses. The aggregate
international subsidiaries that have been previously taxed in the
cash paid, net of cash acquired, totaled $84 million. Acquisitions
U.S. As such, the Company has recorded tax liabilities associated
are recorded using the acquisition method of accounting in
with the future remittance of these earnings. For the remainder
accordance with ASC 805. As a result, the aggregate purchase
of the Company’s undistributed international earnings, unless
price has been allocated to assets acquired and liabilities assumed
it becomes tax effective to repatriate, the Company intends to
based on the estimate of fair market value of such assets and
continue to permanently reinvest these earnings. As of December
liabilities at the date of acquisition. The excess purchase price
31, 2023, such undistributed earnings were approximately
over the estimated fair value of net assets acquired is recognized
$10 billion, excluding other comprehensive income amounts.
as goodwill.
It is not practicable to estimate the amount of tax that might be
payable on the remaining amounts. In addition, the TCJA subjects
Toshiba Carrier Corporation
the Company to a tax on global intangible low-taxed income
(“GILTI”). GILTI is a tax on foreign income in excess of a deemed On February 6, 2022, the Company entered into a binding
return on tangible assets of foreign corporations which the agreement to acquire a majority ownership interest in TCC
Company has elected to account for as a period cost. for $920 million. TCC, a VRF and light commercial HVAC joint
venture between Carrier and Toshiba Corporation, designs and
manufactures flexible, energy-efficient and high-performance
Note 18: Earnings Per Share
VRF and light commercial HVAC systems as well as commercial
products, compressors and heat pumps. The acquisition included
Earnings per share is computed by dividing Net income
all of TCC’s advanced research and development centers and
attributable to common shareowners by the weighted-average
global manufacturing operations, product pipeline and the long-
number of shares of common stock outstanding during the
term use of Toshiba’s iconic brand. The acquisition was completed
period (excluding treasury stock). Diluted earnings per share is
on August 1, 2022 and funded through the Japanese Term Loan
computed by giving effect to all potentially dilutive stock awards
Facility and cash on hand. Upon closing, Toshiba Corporation
that are outstanding. The computation of diluted earnings per
retained a 5% ownership interest in TCC.
share excludes the effect of the potential exercise of stock-based
Carrier 2023 Annual Report 59
Notes to the Consolidated Financial Statements
The allocation of the purchase price is as follows: The valuation of intangible assets was determined using an income
approach methodology including the multi-period excess earnings
(In millions) August 1, 2022 method and the relief from royalty method. Key assumptions used
Cash and cash equivalents $ 462 in estimating future cash flows included projected revenue growth
Accounts receivable 428 rates, EBIT margins, discount rates, customer attrition rates and
royalty rates among others. The projected future cash flows are
Inventories 373
discounted to present value using an appropriate discount rate.
Other assets, current 54
The Company finalized the process of allocating the purchase
Fixed assets 330 price and valuing the acquired assets and liabilities during the year
Intangible assets 965 ended December 31, 2023.
Goodwill 876
The Company previously accounted for its minority ownership in
Other assets 299 TCC under the equity method of accounting. In connection with
Accounts payable (412) the transaction, the carrying value of the Company’s previously
Accrued liabilities (445) held TCC equity investments were recognized at fair value at
Contract liabilities, current (21) the date of acquisition using an income approach methodology.
As a result, the Company recognized a $697 million non-cash
Other long-term liabilities (569)
gain within Other income (expense), net on the accompanying
Net assets acquired $ 2,340 Consolidated Statement of Operations. In addition, the assets,
Less: Fair value of non-controlling interests (22) liabilities and results of operations of TCC are consolidated in
Less: Fair value of previously held TCC equity the accompanying Consolidated Financial Statements as of the
investments (1,398) date of acquisition and reported within the Company’s HVAC
Total cash consideration $ 920 segment. The Company incurred $29 million of acquisition-related
costs during 2022 which are included within Selling, general and
administrative on the accompanying Consolidated Statement of
The excess purchase price over the estimated fair value of the Operations. The Company has not included pro forma financial
net assets acquired was recognized as goodwill and totaled information required under ASC 805 as the pro forma impact was
$876 million, which is not deductible for tax purposes. Accounts not deemed significant.
receivable and current liabilities were stated at their historical
carrying value, which approximates fair value given the short-term Announced Acquisition
nature of these assets and liabilities. The estimate of fair value
for inventory and fixed assets was based on an assessment of On April 25, 2023, the Company announced that it entered into an
the acquired assets’ condition as well as an evaluation of the Agreement to acquire the VCS Business, a privately-held company.
current market value of such assets. The sale agreement included The VCS Business develops intelligent, integrated and sustainable
several customary provisions to settle working capital and other technologies, including heat pumps, boilers, photovoltaic systems,
transaction-related items as of the date of sale. During 2022, the home battery storage and digital solutions, primarily for residential
parties finalized these amounts in accordance with the terms customers in Europe. Under the terms of the Agreement, 20% of
of the sale agreement and the Company paid an additional the purchase price was to be paid in Carrier common stock, issued
$41 million to Toshiba Corporation in 2023. In addition, the parties directly to Viessmann and subject to long-term lock-up provisions
finalized amounts related to pension funding levels during and 80% was to be paid in cash, subject to working capital and
2023 which resulted in the Company receiving $12 million from other adjustments. The acquisition was completed on January 2,
Toshiba Corporation. 2024. See Note 25 - Subsequent Events for additional information.
The Company recorded intangible assets based on its estimate of On April 25, 2023, the Company entered into commitment letters
fair value which consisted of the following: with JPMorgan Chase Bank, N.A., BofA Securities, Inc. and Bank
of America, N.A. to provide a €8.2 billion aggregate principal,
Estimated Intangible senior unsecured bridge term loan facility (the “Bridge Loan”).
Useful Life Assets
(In millions) (in years) Acquired
The Company capitalized $48 million of deferred financing costs
associated with the Bridge Loan which are being amortized over
Customer relationships 23 $497
the commitment period. In May 2023, the aggregate principal
Technology 7 220 amount of the Bridge Loan was reduced by €2.3 billion upon
Trademark 26 180 entering into a senior unsecured delayed draw term loan credit
Backlog 1 60 agreement. As a result, the Company accelerated the amortization
on $10 million of deferred financing costs in Interest expense. In
Land use rights 45 8
November 2023, the aggregate principle amount of the Bridge
Total intangible assets acquired $965 Loan was reduced by €5.4 billion upon the issuance of the USD
60 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Notes and the Euro Notes. As a result, the Company accelerated The following table summarizes assets and liabilities classified as
the amortization on $15 million of deferred financing costs in held for sale:
Interest expense.
December 31, 2023
On May 19, 2023, the Company entered into a senior unsecured
Commercial Access Industrial
delayed draw term loan credit agreement with JPMorgan Chase (In millions) Refrigeration Solutions Fire Total
Bank, N.A., as administrative agent and certain other lenders that Cash and cash $131 $ 6 $ 20 $ 157
permits aggregate borrowings of up to €2.3 billion (the “Delayed equivalents
Draw Facility”). The Company capitalized $4 million of deferred Accounts 274 104 101 479
financing costs associated with the Delayed Draw Facility which receivable, net
will be amortized over the term once the facility is drawn upon. Inventories, net 84 31 65 180
In addition, the Company entered into a 364-day, $500 million, Contract assets, 98 2 42 142
senior unsecured revolving credit agreement with JPMorgan Chase current
Bank, N.A., as administrative agent and certain other lenders (the Other assets, current 15 3 4 22
“Revolver”) on May 19, 2023. Proceeds from the Revolver became
Fixed assets, net 78 13 22 113
available upon closing the purchase of the VCS Business.
Intangible assets, net — 53 2 55
Goodwill 72 1,498 439 2,009
Note 20: Divestitures
Operating lease 49 13 28 90
right-of-use assets
Planned Porfolio Transformation
Other assets 44 10 13 67
On April 25, 2023, the Company announced plans to exit its Total assets $845 $1,733 $736 $3,314
Fire & Security and Commercial Refrigeration businesses over held for sale
the course of 2024. On December 7, 2023, the Company entered
into a stock purchase agreement to sell its Access Solutions
Accounts payable $129 $ 20 $ 39 $ 188
business to Honeywell International Inc. for an enterprise value of
approximately $4.95 billion. Access Solutions, historically reported Accrued liabilities 181 21 55 257
in the Company’s Fire & Security segment, is a global supplier Contract liabilities, 23 53 22 98
of physical security and digital access solutions supporting the current
hospitality, commercial, education and military markets. On Long-term debt, 8 — — 8
including current
December 12, 2023, the Company entered into a stock purchase
portion
agreement to sell the CCR business to Haier Group Corporation for
Future pension and 203 — 1 204
an enterprise value of approximately $775 million. CCR, historically
post-retirement
reported in the Company’s Refrigeration segment, is a global obligations
supplier of turnkey solutions for commercial refrigeration systems Future income tax 4 2 3 9
and services, with a primary focus on serving food retail customers, obligations
cold storage facilities and warehouses. As a result, the assets and Operating lease 40 11 23 74
liabilities of both businesses are presented as held for sale in the liabilities
accompanying Consolidated Balance Sheets as of December 31, Other long-term 3 12 9 24
2023 and recorded at the lower of their carrying value or fair value liabilities
less estimated cost to sell. Both transactions are expected to close Total liabilities held $591 $ 119 $152 $ 862
in 2024 and are subject to customary closing conditions. for sale
In addition, the net assets of the Company’s Industrial Fire business
met the criteria to be classified as held for sale during the fourth Note 21: Segment Financial Data
quarter of 2023. Industrial Fire, historically reported in the Company’s
Fire & Security segment, is a leading manufacturer of a full spectrum The Company conducts its operations through three reportable
of fire detection and suppression solutions and services in critical operating segments: HVAC, Refrigeration and Fire & Security. In
high-hazard environments, including oil and gas, power generation, accordance with ASC 280 - Segment Reporting, the Company’s
marine and offshore facilities, automotive, data centers and aircraft segments maintain separate financial information for which results
hangars. As a result, the assets and liabilities of the business are of operations are evaluated on a regular basis by the Company’s
presented as held for sale in the accompanying Consolidated Chief Operating Decision Maker in deciding how to allocate
Balance Sheet as of December 31, 2023 and recorded at the lower of resources and in assessing performance. Inter-company sales
their carrying value or fair value less estimated cost to sell. between segments are immaterial.
Carrier 2023 Annual Report 61
Notes to the Consolidated Financial Statements
• The HVAC segment provides products, controls, services • The Fire & Security segment provides a wide range of
and solutions to meet the heating, cooling and ventilation residential, commercial and industrial technologies designed
needs of residential and commercial customers while to help protect people and property.
enhancing building performance, health, energy efficiency
The Company’s customers are in both the public and private
and sustainability.
sectors and its businesses reflect extensive geographic
• The Refrigeration segment includes transport refrigeration
diversification. Inter-company sales between segments
and monitoring products, services and digital solutions for
are immaterial.
trucks, trailers, shipping containers, intermodal and rail, as
well as commercial refrigeration products.
Net sales and Operating profit by segment are as follows:
Net Sales Operating Profit
(In millions) 2023 2022 2021 2023 2022 2021
HVAC $15,139 $13,408 $11,390 $2,275 $2,610 $1,738
Refrigeration 3,818 3,883 4,127 428 483 476
Fire & Security 3,633 3,570 5,515 209 1,630 662
Total segment 22,590 20,861 21,032 2,912 4,723 2,876
Eliminations and other (492) (440) (419) (275) (80) (96)
General corporate expenses — — — (341) (128) (135)
Consolidated $22,098 $20,421 $20,613 $2,296 $4,515 $2,645
Total assets are not presented for each segment as they are not presented to or reviewed by the CODM. Segment assets in the
following table represent Accounts receivable, net, Contract assets, current and Inventories, net. These assets are regularly reviewed by
management and are therefore reported in the following table as segment assets. All other remaining assets and liabilities for all periods
presented are managed on a company-wide basis.
Segment Assets Capital Expenditures Depreciation & Amortization
(In millions) 2023 2022 2023 2022 2021 2023 2022 2021
HVAC $ 3,204 $3,191 $313 $232 $225 $413 $256 $186
Refrigeration 834 1,279 30 32 39 34 31 36
Fire & Security 940 1,492 33 40 49 54 58 83
Total Segment 4,978 5,962 376 304 313 501 345 305
Eliminations and other 26 48 93 49 31 41 35 33
Consolidated $ 5,004 $6,010 $469 $353 $344 $542 $380 $338
Cash and cash equivalents 10,015 3,520
Other assets, current 447 349
Assets held for sale 3,314 —
Total current assets $18,780 $9,879
62 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
Geographic External Sales
Geographic external sales and operating profits are attributed to the geographic regions based on their location of origin. With the
exception of the U.S. as presented in the following table, there were no individually significant countries with sales exceeding 10% of total
sales for the years ended December 31, 2023, 2022 and 2021.
External Sales Long-Lived Assets
(In millions) 2023 2022 2021 2023 2022
United States Operations $12,205 $11,797 $10,492 $ 857 $ 803
International Operations
Europe 4,729 4,359 5,776 497 453
Asia Pacific 4,352 3,489 3,464 543 573
Other 812 776 881 396 412
Consolidated $22,098 $20,421 $20,613 $2,293 $2,241
Summarized Financial Information. Pursuant to Rule 3-10 and
Note 22: Related Paries Rule 4-08(g) of Regulation S-X under the Securities Act, the
Company presents summarized financial information of the
Equity Method Investments
combined accounts of its non-consolidated joint ventures
The Company sells products to and purchases products from accounted for by the equity method.
unconsolidated entities accounted for under the equity method
Summarized unaudited financial information for equity method
and, therefore, these entities are considered to be related parties.
investments is as follows:
The Company has 26 directly owned unconsolidated domestic and
foreign affiliates as of December 31, 2023, of which 97% of such (In millions) 2023 2022
investments are in its HVAC segment. The Company periodically
Current assets $11,432 $10,621
reviews the carrying value of its equity method investments to
determine if there has been an other-than-temporary decline in Non-current assets 1,834 1,931
fair value. Total assets 13,266 12,552
Amounts attributable to equity method investees are as follows:
Current liabilities (9,296) (8,631)
(In millions) 2023 2022 2021 Non-current liabilities (190) (195)
Sales to equity method investees $2,920 $2,845 $2,258 Total liabilities (9,486) (8,826)
included in Product sales
Total net equity of investees $ 3,780 $ 3,726
Purchases from equity method $ 214 $ 331 $ 357
investees included in
Cost of products sold
(In millions) 2023 2022 2021
Net sales $16,180 $11,524 $9,471
The Company had receivables from and payables to equity method Gross profit $ 2,862 $ 2,274 $1,907
investees as follows:
Income from continuing $ 655 $ 757 $ 650
operations
(In millions) 2023 2022
Net income $ 655 $ 757 $ 650
Receivables from equity method investees included $231 $154
in Accounts receivable, net
Payables to equity method investees included in $ 44 $ 44 Note 23: Commitments and
Accounts payable
Contingent Liabilities
The financial results of TCC are included in the Company’s The Company is involved in various litigation, claims and
consolidated results since the acquisition date of August 1, 2022. administrative proceedings, including those related to
Prior to the acquisition, the Company previously accounted for its environmental (including asbestos) and legal matters. In
minority ownership in TCC under the equity method of accounting. accordance with ASC 450, Contingencies, the Company records
As a result, prior period results may not be comparable to the accruals for loss contingencies when it is probable that a liability
current period. has been incurred and the amount of the loss can be reasonably
Carrier 2023 Annual Report 63
Notes to the Consolidated Financial Statements
estimated. These accruals are generally based upon a range The Company’s asbestos liabilities and related insurance
of possible outcomes. If no amount within the range is a better recoveries are as follows:
estimate than any other, the Company accrues the minimum
amount. In addition, these estimates are reviewed periodically (In millions) 2023 2022
and adjusted to reflect additional information when it becomes Asbestos liabilities included in Accrued liabilities $ 15 $ 16
available. The Company is unable to predict the final outcome Asbestos liabilities included in Other 206 212
of the following matters based on the information currently long-term liabilities
available, except as otherwise noted. However, the Company Total asbestos liabilities $221 $228
does not believe that the resolution of any of these matters will
have a material adverse effect upon its results of operations or
Asbestos-related recoveries included in $ 5 $ 5
financial condition. Other assets, current
Asbestos-related recoveries included in 88 90
Environmental Maters Other assets
The Company’s operations are subject to environmental regulation Total asbestos-related recoveries $ 93 $ 95
by various authorities. The Company has accrued for the costs
of environmental remediation activities, including but not limited
The amounts recorded for asbestos-related liabilities are based
to, investigatory, remediation, operating and maintenance
on currently available information and assumptions that the
costs and performance guarantees. The most likely cost to be
Company believes are reasonable and are made with input from
incurred is accrued based on an evaluation of currently available
outside actuarial experts. These amounts are undiscounted
facts with respect to individual sites, including the technology
and exclude the Company’s legal fees to defend the asbestos
required to remediate, current laws and regulations and prior
claims, which are expensed as incurred. In addition, the Company
remediation experience.
has recorded insurance recovery receivables for probable
As of December 31, 2023 and 2022, the outstanding liability for asbestos-related recoveries.
environmental obligations are as follows:
UTC Equity Awards Conversion Litigation
(In millions) 2023 2022
On August 12, 2020, several former employees of UTC or
Environmental reserves included in $ 21 $ 24
its subsidiaries filed a putative class action complaint (the
Accrued liabilities
“Complaint”) in the United States District Court for the District of
Environmental reserves included in Other 203 211
long-term liabilities Connecticut against RTX, Carrier, Otis, the former members of the
UTC Board of Directors and the members of the Carrier and Otis
Total environmental reserves $224 $235
Boards of Directors (Geraud Darnis, et al. v. Raytheon Technologies
Corporation, et al.). The Complaint challenged the method by
For sites with multiple responsible parties, the Company considers which UTC equity awards were converted to UTC, Carrier and
its likely proportionate share of the anticipated remediation Otis equity awards following the Separation and the Distribution.
costs and the ability of other parties to fulfill their obligations in Defendants moved to dismiss the Complaint. Plaintiffs amended
establishing a provision for these costs. Accrued environmental their Complaint on September 13, 2021 (the “Amended Complaint”).
liabilities are not reduced by potential insurance reimbursements The Amended Complaint, with RTX, Carrier and Otis as the only
and are undiscounted. defendants, asserted that the defendants are liable for breach of
certain equity compensation plans and for breach of the implied
Asbestos Maters covenant of good faith and fair dealing. The Amended Complaint
also sought specific performance. The Company believes all
The Company has been named as a defendant in lawsuits alleging
plaintiffs’ claims against it are without merit. Defendants moved
personal injury as a result of exposure to asbestos allegedly
to dismiss the Amended Complaint. On September 30, 2022, the
integrated into certain Carrier products or business premises.
court dismissed the case against all defendants, with prejudice.
While the Company has never manufactured asbestos and no
Plaintiffs appealed the dismissal to the United States Court of
longer incorporates it into any currently-manufactured products,
Appeals for the Second Circuit. On August 3, 2023, the Second
certain products that the Company no longer manufactures
Circuit of Appeals affirmed the district court’s ruling. The Second
contained components incorporating asbestos. A substantial
Circuit’s judgment is final and non-appealable.
majority of these asbestos-related claims have been dismissed
without payment or have been covered in full or in part by
Aqueous Film Forming Foam Litigation
insurance or other forms of indemnity. Additional cases were
litigated and settled without any insurance reimbursement. The As of December 31, 2022, the Company, KFI and others have
amounts involved in asbestos-related claims were not material been named as defendants in more than 6,000 lawsuits filed by
individually or in the aggregate in any period. individuals in or removed to the federal courts of the United States
64 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
alleging that the historic use of Aqueous Film Forming Foam by many third parties in a number of different industries to
(“AFFF”) caused personal injuries and/or property damage. The manufacture firefighters’ protective outerwear, carpets, clothing,
Company, KFI and others have also been named as defendants in fabrics, cookware, food packaging, personal care products,
more than 700 lawsuits filed by several U.S. states, municipalities cleaning products, paints, varnishes and other consumer and
and water utilities in or removed to U.S. federal courts alleging industrial products.
that the historic use of AFFF caused contamination of property
Plaintiffs in the MDL Proceedings have named multiple defendants,
and water supplies. In December 2018, the U.S. Judicial Panel on
including suppliers of chemicals and raw materials used to
Multidistrict Litigation transferred and consolidated all AFFF
manufacture fluorosurfactants, fluorosurfactant manufacturers
cases pending in the U.S. federal courts against the Company,
and AFFF manufactures. The defendants in the MDL Proceedings
KFI and others to the U.S. District Court for the District of South
moved for summary judgment on the government contractor
Carolina (the “MDL Proceedings”). The individual plaintiffs in the
defense, which potentially applies to AFFF sold to or used by
MDL Proceedings generally seek damages for alleged personal
the U.S. government. After full briefing and oral argument, on
injuries, medical monitoring, diminution in property value and
September 16, 2022, the MDL court declined to enter summary
injunctive relief to remediate alleged contamination of water
judgment for the defendants. The defense, however, remains
supplies. The U.S. state, municipal and water utility plaintiffs in the
available at any trial to which it applies.
MDL Proceedings generally seek damages and costs related to the
remediation of public property and water supplies. On September 23, 2022, after completion of discovery, the
MDL court selected one water provider case, the City of Stuart,
AFFF is a firefighting foam, developed beginning in the late 1960s
FL v. 3M, et al., for a bellwether trial. That trial was scheduled to
pursuant to U.S. military specification, used to extinguish certain
begin in early June 2023 but was postponed indefinitely. The MDL
types of hydrocarbon-fueled fires. The lawsuits identified above
court has ordered that the bellwether process for personal injury
relate to Kidde Fire Fighting, Inc., which owned the National
cases to begin in 2023. However, the court has not yet outlined
Foam business. Kidde Fire Fighting, Inc. was acquired by a UTC
details on that process or its timing.
subsidiary in 2005 and merged into KFI in 2007. The National Foam
business manufactured AFFF for sale to government (including the Outside of the MDL Proceedings, the Company and other
U.S. federal government) and non-government customers in the defendants are also party to six lawsuits in U.S. state courts brought
U.S. at a single facility located in West Chester, Pennsylvania (the by oil refining companies alleging product liability claims related to
“Pennsylvania Site”). In 2013, KFI divested the AFFF businesses to legacy sales of AFFF and seeking damages for the costs to replace
an unrelated third party. The Company acquired KFI as part of the the product and for property damage. In addition, the Company
Separation in April 2020. and other defendants are party to two actions related to the
Pennsylvania Site in which the plaintiff water utility company seeks
The key components of AFFF that contribute to its fire-
remediation costs related to the alleged contamination of the local
extinguishing capabilities are known as fluorosurfactants. Neither
water supply. The Company, KFI and other defendants are also
the Company nor KFI, nor any of the Company’s subsidiaries
party to one action in Arizona state court brought by a firefighter
involved in the AFFF litigation manufactured fluorosurfactants.
claiming that occupational exposure to AFFF has caused certain
Instead, the National Foam business purchased these substances
personal injuries.
from unrelated third parties to in turn manufacture AFFF. Plaintiffs
in the MDL Proceedings allege that the fluorosurfactants used by The Company and KFI believe that they have meritorious defenses
various manufacturers in producing AFFF contained, or over time to the claims in the MDL Proceedings and the other AFFF lawsuits.
degraded into, compounds known as per- and polyfluoroalkyl Given the numerous factual, scientific and legal issues to be
substances (referred to collectively as “PFAS”), including resolved relating to these claims, the Company is unable to assess
perflourooctanesulfonic acid (“PFOS”) and perflourooctanoic acid the probability of liability or to reasonably estimate a range of
(“PFOA”). Plaintiffs further allege that, as a result of the use of AFFF, possible loss at this time. There can be no assurance that any such
PFOS and PFOA were released into the environment and, in some future exposure will not be material in any period.
instances, ultimately reached drinking water supplies.
On May 14, 2023, KFI filed a voluntary petition with the United
Plaintiffs in the MDL Proceedings allege that PFOS and PFOA States Bankruptcy court for the District of Delaware seeking relief
contamination has resulted from the use of AFFF manufactured under Chapter 11 of the Bankruptcy Code after the Company
using a process known as ECF, and that this process was used determined that it would not provide financial support to KFI going
exclusively by 3M. They also allege that PFOA contamination has forward, other than ensuring KFI has access to services necessary
resulted from the use of AFFF manufactured using a different for the effective operation of its business. As a result, all litigation
process, known as telomerization, and that this process was against KFI is automatically stayed. KFI filed an adversary complaint
used exclusively by the other AFFF manufacturers (including the and motion in the Chapter 11 case seeking an order staying or
National Foam business). Compounds containing PFOS and PFOA enjoining all AFFF-related litigation against the Company, its
(as well as many other PFAS) have also been used for decades other subsidiaries and RTX. That motion was resolved through
Carrier 2023 Annual Report 65
Notes to the Consolidated Financial Statements
an agreement that effectively stays the AFFF litigation against The Company’s self-insurance liabilities were as follows:
these parties. KFI has also indicated to the bankruptcy court that
it intends to pursue insurance coverage for AFFF-related liabilities (In millions) 2023 2022
and contractual indemnification for AFFF-related liabilities from Self-insurance liabilities included in $160 $139
the third party to which KFI sold National Foam. On November 21, Accrued liabilities
2023, the bankruptcy court ordered certain parties, including the Self-insurance liabilities included in Other 55 53
Company, to participate in a mediation with respect to claims that long-term liabilities
might be asserted by and against it in the bankruptcy proceedings. Total self-insurance liabilities $215 $192
The parties have engaged in several mediation sessions and
anticipate further sessions in the future.
The Company incurred expenses related to self-insured risks of
$180 million, $155 million and $155 million for the years ended
Deconsolidation Due to Bankruptcy
December 31, 2023, 2022 and 2021, respectively.
As of May 14, 2023, the Company no longer controlled KFI as their
activities are subject to review and oversight by the bankruptcy
Other Maters
court. Therefore, KFI was deconsolidated and their respective
assets and liabilities were derecognized from the Company’s The Company has other commitments and contingent liabilities
Consolidated Financial Statements. Upon deconsolidation, the related to legal proceedings, self-insurance programs and matters
Company determined the fair value of its retained interest in KFI to arising in the ordinary course of business. The Company accrues
be zero and accounted for it prospectively using the cost method. for contingencies generally based upon a range of possible
As a result of these actions, the Company recognized a loss of outcomes. If no amount within the range is a better estimate than
$297 million in its Consolidated Statements of Operations within any other, the Company accrues the minimum amount.
Other income/(expense), net. In addition, the deconsolidation
In the ordinary course of business, the Company is also routinely a
resulted in an investing cash outflow of $134 million in the
defendant in, party to or otherwise subject to many pending and
Company’s Consolidated Statements of Cash Flows.
threatened legal actions, claims, disputes and proceedings. These
In connection with the bankruptcy filing, KFI entered into several matters are often based on alleged violations of contract, product
agreements with subsidiaries of the Company to ensure they have liability, warranty, regulatory, environmental, health and safety,
access to services necessary for the effective operation of their employment, intellectual property, tax and other laws. In some of
business. All post-deconsolidation activity between the Company these proceedings, claims for substantial monetary damages are
and KFI are reported as third-party transactions recorded within asserted against the Company and could result in fines, penalties,
the Company’s Consolidated Statements of Operations. Since the compensatory or treble damages or non-monetary relief. The
petition date, there were no material transactions between the Company does not believe that these matters will have a material
Company and KFI. adverse effect upon its competitive position, results of operations,
cash flows or financial condition.
Income Taxes
Under the Tax Matters Agreement relating to the Separation, Note 24: Supplemental Cash Flow Information
the Company is responsible to UTC for its share of the Tax
Cuts and Jobs Act transition tax associated with foreign Supplemental cash flow information was as follows:
undistributed earnings as of December 31, 2017. As a result,
(In millions) 2023 2022 2021
liabilities of $132 million and $243 million are included within
the accompanying Consolidated Balance Sheet within Accrued Interest paid, net of amounts capitalized $320 $297 $317
Liabilities and Other Long-Term Liabilities as of December 31, 2023, Income taxes paid, net of refunds $942 $833 $675
respectively. This obligation is expected to be settled in annual
installments ending in April 2026 with the next installment of Non-cash fnancing activity:
$89 million due in 2024. The Company believes that the likelihood
Common stock dividends payable $161 $158 $130
of incurring losses materially in excess of this amount is remote.
Self-Insurance Note 25: Subsequent Events
The Company maintains self-insurance for a number of risks,
including but not limited to, workers’ compensation, general On January 2, 2024, the Company entered into a 60-day senior
liability, automobile liability, property and employee-related unsecured bridge term loan agreement with JPMorgan Chase
healthcare benefits. It has obtained insurance coverage for Bank, N.A., as administrative agent (“60-day Bridge Loan”). The
amounts exceeding individual and aggregate loss limits. The facility consisted of a Euro-denominated tranche in an aggregate
Company accrues for known future claims and incurred but not amount of €113 million and a USD-denominated tranche in an
reported losses. aggregate amount of $349 million. Euro-denominated borrowings
bear interest at the EURIBOR Rate plus a ratings-based margin,
66 Carrier 2023 Annual Report
Notes to the Consolidated Financial Statements
USD-denominated borrowings bear interest at either a Term SOFR growth. In addition, the Company anticipates realizing significant
Rate plus 0.10% and a ratings-based margin or, alternatively, at a operational synergies including purchase material savings through
base rate plus a ratings-based margin. The proceeds of the senior supplier rationalization and procurement leverage, improvement in
unsecured bridge term loan were used to fund a portion of the manufacturing costs and lower general and administrative costs.
Euro-denominated purchase price of the VCS Business. Longer term, the Company expects to benefit from synergies
related to service revenue expansion, leverage of distribution
On January 2, 2024, the Company completed the previously
channels and vertical cross selling through certain vertical markets.
announced acquisition of the VCS Business from Viessmann
The net sales of the VCS Business were €3.4 billion during the
for total consideration of $14.2 billion. The purchase price
twelve months ended December 31, 2022.
consisted of (i) US$11.2 billion in cash and (ii) 58,608,959 shares
of the Company’s common stock, subject to long-term lock-up The transaction will be accounted for as a business combination
provisions and anti-dilution protection. The Company funded the under ASC 805 and the results of operations from the date
cash portion of the base purchase price with a combination of of acquisition will be reflected within the HVAC segment. The
cash on hand, net proceeds from the USD Notes and Euro Notes Company is in the process of completing its appraisals of
and borrowings under the Delayed Draw Facility and the 60-day tangible and intangible assets relating to this acquisition and
Bridge Loan. the allocation of the purchase price to the assets acquired and
liabilities assumed will be completed once the appraisal process
The VCS Business develops intelligent, integrated and sustainable
has been finalized. During the year ended December 31, 2023, the
technologies, including heat pumps, boilers, photovoltaic
Company recognized acquisition-related costs of $80 million,
systems, home battery storage and digital solutions, primarily
which are reflected within Selling, general and administrative in the
for residential customers in Europe. The Company believes that
Consolidated Statement of Operations.
secular trends in these areas will drive significant, sustained future
Carrier 2023 Annual Report 67
Comparison of Cumulative Total Return
Perormance Graph On April 3, 2020, UTC completed the Separation of Carrier into
a stand-alone company. As a result of the Separation and the
The following information is not deemed to be “soliciting material” Distribution, Carrier became an independent public company.
or to be “filed” with the SEC or subject to Regulation 14A or 14C The following graph presents the cumulative total shareowner
under the Exchange Act or to the liabilities of Section 18 of the return from the Distribution Date through December 31, 2023 for
Exchange Act, and will not be deemed to be incorporated by our common stock, as compared with the S&P 500 Index and the
reference into any filing of the Company under the Securities Act Dow Jones Industrial Index.
or the Exchange Act, except to the extent the Company specifically Our common stock is a component of the S&P 500 Index. These
incorporates it by reference into such a filing. figures assume that all dividends paid over the period were
reinvested and that the starting value of each index and the
investment in our common stock was $100 on April 3, 2020.
$500
$400
$300
$200
Carrier Global Corporation
$100
S&P 500 Index
$0 Dow Jones Industrial Index
4/3/2020 12/31/2020 12/31/2021 12/31/2022 12/31/2023
The cumulative total returns on our common stock and each index as of each April 3, 2020 through December 31, 2023 plotted in the
above graph are as follows:
Company / Index April 3, 2020 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023
Carrier Global Corporation $100.00 $286.66 $416.55 $316.82 $441.24
S&P 500 Index $100.00 $150.59 $193.82 $154.28 $191.66
Dow Jones Industrial Index $100.00 $145.31 $175.75 $157.45 $179.03
68 Carrier 2023 Annual Report
Reconciliation of Non-GAAP Measures to Corresponding GAAP
Net Income, Earnings Per Share and Efective Tax Rate
Unaudited
Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021
(In millions, except per
share amounts) Repored Adjustments Adjusted Reported Adjustments Adjusted Reported Adjustments Adjusted
Net sales $22,098 $ — $22,098 $20,421 $ — $20,421 $20,613 $ — $20,613
Operating profit 2,296 911a 3,207 4,515 (1,621)a 2,894 2,645 174a 2,819
Operating margin 10.4% 14.5% 22.1% 14.2% 12.8% 13.7%
Income from
operations before
income taxes 2,084 960a,b 3,044 4,292 (1,649)a,b 2,643 2,400 193a,b 2,593
Income tax expense (644) 20c (624) (708) 135c (573) (699) 167c (532)
Income tax rate 30.9% 20.5% 16.5% 21.7% 29.1% 20.5 %
Net income
atributable to
common shareowners $ 1,349 $ 980 $ 2,329 $ 3,534 $ (1,514) $ 2,020 $ 1,664 $ 360 $ 2,024
Summary of
Adjustments:
Restructuring costs $ 97a $ 31a $ 89a
Amortization of
acquired intangibles 149a 50a 15a
Acquisition step-up
amortization(1) 41a 51a 5a
Acquisition/divestiture-
related costs 220a 31a 2a
Viessmann-related hedges 96a — —
KFI deconsolidation 297 a
— —
TCC acquisition-
related gain(2) 8a (705)a —a
Chubb gain — (1,105) a
—a
Chubb transaction costs — — 43a
Russia/Ukraine asset
impairment — 4a —a
Charge resulting from
legal matter — 22a —a
Separation costs — — 20a
Bridge loan financing
costs(3) 52a, b — —
Debt extinguishment
(gain), net(4) — (28)b 19b
Total adjustments $ 960 $ (1,649) $ 193
Tax effect on adjustments
above $ (114) $ 172 $ (33)
Tax specific adjustments 134 (37) 200
Total tax adjustments $ 20c $ 135c $ 167c
Shares outstanding -
Diluted 853.0 853.0 861.2 861.2 890.3 890.3
Earnings per share -
Diluted $ 1.58 $ 2.73 $ 4.10 $ 2.34 $ 1.87 $ 2.27
(1)
Amortization of the step-up to fair value of acquired inventory and backlog.
(2)
The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.
(3)
Includes commitment fess recognized in Selling, general and administrative.
(4)
The Company repurchased approximately $1.15 billion of aggregate principal senior notes on March 30, 2022 and recognized a net gain of $33 million and wrote-off
$5 million of unamortized deferred financing costs in Interest (expense) income, net.
Carrier 2023 Annual Report 69
Reconciliation of Non-GAAP Measures to Corresponding GAAP
Operating Proft
(Unaudited)
Year Ended December 31, 2023
General
Fire & Eliminations Corporate
(In millions, except per share amounts) HVAC Refrigeration Security and Other Expenses Carrier
Net sales $ 15,139 $ 3,818 $ 3,633 $ (492) $ — $22,098
Segment operating proft $ 2,275 $ 428 $ 209 $ (275) $ (341) $ 2,296
Reported operating margin 15.0% 11.2% 5.8% 10.4%
Adjustments to segment operating profit:
Restructuring costs $ 44 $ 21 $ 22 $ 10 $ — $ 97
Amortization of acquired intangibles 143 — 6 — — 149
Acquisition step-up amortization(1) 41 — — — — 41
Acquisition/divestiture-related costs — — 9 — 211 220
Bridge loan financing costs — — — 3 — 3
TCC acquisition-related gain(2) 8 — — — — 8
Viessmann-related hedges — — — 96 — 96
KFI deconsolidation — — 297 — — 297
Total adjustments to operating proft $ 236 $ 21 $ 334 $ 109 $ 211 $ 911
Adjusted operating proft $ 2,511 $ 449 $ 543 $ (166) $ (130) $ 3,207
Adjusted operating margin 16.6% 11.8% 14.9% 14.5%
(1)
Amortization of the step-up to fair value of acquired inventory and backlog.
(2)
The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.
(Unaudited)
Year Ended December 31, 2022
General
Fire & Eliminations Corporate
(In millions) HVAC Refrigeration Security and Other Expenses Carrier
Net sales $ 13,408 $ 3,883 $ 3,570 $ (440) $ — $20,421
Segment operating proft $ 2,610 $ 483 $ 1,630 $ (80) $ (128) $ 4,515
Reported operating margin 19.5% 12.4% 45.7% 22.1%
Adjustments to segment operating profit:
Restructuring costs $ 8 $ 10 $ 11 $ 2 $ — $ 31
Amortization of acquired intangibles 46 — 4 — — 50
Acquisition step-up amortization(1) 51 — — — — 51
Acquisition-related costs — — — — 31 31
Chubb gain — — (1,105) — — (1,105)
TCC acquisition-related gain(2) (705) — — — — (705)
Russia/Ukraine asset impairment — 3 1 — — 4
Charge resulting from legal matter 22 — — — — 22
Total adjustments to operating proft $ (578) $ 13 $ (1,089) $ 2 $ 31 $(1,621)
Adjusted operating proft $ 2,032 $ 496 $ 541 $ (78) $ (97) $ 2,894
Adjusted operating margin 15.2% 12.8% 15.2% 14.2%
(1)
Amortization of the step-up to fair value of acquired inventory and backlog.
(2)
The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.
70 Carrier 2023 Annual Report
Reconciliation of Non-GAAP Measures to Corresponding GAAP
(Unaudited)
Year Ended December 31, 2021
General
Fire & Eliminations Corporate
(In millions, except per share amounts) HVAC Refrigeration Security and Other Expenses Carrier
Net sales $ 11,390 $4,127 $ 5,515 $ (419) $ — $20,613
Segment operating proft $ 1,738 $ 476 $ 662 $ (96) $(135) $ 2,645
Reported operating margin 15.3% 11.5% 12.0% 12.8%
Adjustments to segment operating profit:
Restructuring costs $ 33 $ 25 $ 26 $ — $ 5 $ 89
Amortization of acquired intangibles 15 — — — — 15
Acquisition step-up amortization (1)
5 — — — — 5
Acquisition-related costs — — — — 2 2
Chubb transaction costs — — 42 — 1 43
Separation costs — — — 17 3 20
Total adjustments to operating proft $ 53 $ 25 $ 68 $ 17 $ 11 $ 174
Adjusted operating proft $ 1,791 $ 501 $ 730 $ (79) $(124) $ 2,819
Adjusted operating margin 15.7% 12.1% 13.2% 13.7%
(1)
Amortization of the step-up to fair value of acquired inventory and backlog.
(2)
The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.
Reconciliation of Net Cash Flows From Operating Activities to Free Cash Flow
(Unaudited)
Year Ended Year Ended Year Ended
(In millions) December 31, 2023 December 31, 2022 December 31, 2021
Net cash flows provided by operating activities $2,607 $ 1,743 $ 2,237
Less: Capital expenditures 469 353 344
Free cash fow $2,138 $1,390 $1,893
Carrier 2023 Annual Report 71
Board of Directors
David Gitlin Susan N. Story
Chairman & Chief Executive Officer Former President & Chief Executive Officer
Carrier Global Corporation American Water Works Company, Inc.
Jean-Pierre Garnier, Ph.D. Michael A. Todman
Former Chief Executive Officer Former Vice Chairman
GlaxoSmithKline plc Whirlpool Corporation
Operating Partner
Advent International Max Viessmann
Chief Executive Officer & Member of the Executive Board
John J. Greisch Viessmann Group
Lead Independent Director
Former President & Chief Executive Officer Virginia M. Wilson
Hill-Rom Holdings, Inc. Former Senior Executive Vice President &
Senior Advisor Chief Financial Officer
TPG Capital Teachers Insurance and Annuity Association of America
Charles M. Holley, Jr. Beth A. Wozniak
Former Executive Vice President & Chief Financial Officer Chair & Chief Executive Officer
Wal-Mart Stores, Inc. nVent Electric plc
Michael M. McNamara
Co-Founder & Chief Executive Officer
Samara
Former Chief Executive Officer
Flex Ltd.
Commitees
Audit Commitee Governance Commitee
Charles M. Holley, Jr., Chair Virginia M. Wilson, Chair
Susan N. Story Charles M. Holley, Jr.
Michael A. Todman Michael M. McNamara
Virginia M. Wilson Beth A. Wozniak
Compensation Commitee Technology and Innovation Commitee
Michael A. Todman, Chair Michael M. McNamara, Chair
Jean-Pierre Garnier Jean-Pierre Garnier
John J. Greisch John J. Greisch
Susan N. Story Max Viessmann
Beth A. Wozniak
As of 1/31/2024.
72 Carrier 2023 Annual Report
Leadership
David Gitlin * Milena Oliveira
Chairman & Chief Executive Officer Senior Vice President & Chief Marketing and
Communications Officer
Ajay Agrawal *
Senior Vice President, Global Services, Business Development & Gaurang Pandya
Chief Strategy Officer President, HVAC Americas & Commercial
HVAC Europe, Middle East and Africa
Adrian Buton
Senior Vice President, Operations Saif Siddiqui
President, HVAC Asia Pacific
Kyle Crocket *
Vice President, Controller Jurgen Timperman *
President, Fire & Security
Bobby George
Senior Vice President & Chief Digital Officer Nadia Villeneuve *
Senior Vice President & Chief Human Resources Officer
Patrick Goris *
Senior Vice President & Chief Financial Officer Timothy White *
President, Refrigeration
Thomas Heim
President, Residential & Light Commercial Hakan Yilmaz
HVAC Europe, Middle East and Africa Senior Vice President & Chief Technology and Sustainability Officer
Kevin O’Connor *
Senior Vice President & Chief Legal Officer
*
Executive Officer
As of 1/31/2024.
Carrier 2023 Annual Report 73
Shareowner Information
Corporate Ofce Electronic Access or Delivery of Shareowner Communications
Carrier Global Corporation Registered shareowners can help conserve natural resources
13995 Pasteur Boulevard and reduce printing and mailing costs incurred by Carrier by
Palm Beach Gardens, FL 33418 signing up for electronic communications, including annual
561.365.2000 meeting materials, stock plan statements and tax documents, at:
www.corporate.carrier.com www.computershare-na.com/green.
This report is made available to shareowners in advance of Beneficial shareowners may be able to request electronic access
the Annual Meeting of Shareowners scheduled to be held at or delivery by contacting their broker or bank, or Broadridge
8:30 a.m. Eastern time on April 18, 2024, in a virtual-only format. Financial Solutions at: www.investordelivery.com.
The Proxy Statement will be made available to shareowners on
2023 Annual Repor on Form 10-K
or about March 5, 2024, and will provide additional information
Copies of the Carrier 2023 Annual Report on Form 10-K as
about voting and participating in the meeting.
filed with the U.S. Securities and Exchange Commission can be
Stock Listing accessed and downloaded via our website at:
New York Stock Exchange (ticker symbol “CARR”) https://ir.carrier.com/financials/sec-filings.
Transfer Agent and Registrar Copies also can be obtained, without charge, from:
Computershare Trust Company, N.A., is the transfer agent,
Carrier Corporate Secretary
registrar and dividend disbursing agent for Carrier’s common
Carrier Global Corporation
stock. Questions and communications from registered
13995 Pasteur Boulevard
shareowners should be directed to:
Palm Beach Gardens, FL 33418
Computershare Trust Company, N.A. corpsec@carrier.com
By Regular Mail
Investor Relations
P.O. Box 43006
Investor Relations
Providence, RI 02940-3006
Carrier Global Corporation
By Overnight Delivery 13995 Pasteur Boulevard
150 Royall Street, Suite 101 Palm Beach Gardens, FL 33418
Canton, MA 02021 investorrelations@carrier.com
866.507.8028
781.575.3345 (outside U.S.)
www.computershare.com/investor
74 Carrier 2023 Annual Report
Recognition &
Industry Leadership
Ranked No. 8 of Achieved
100 Most Sustainable Companies ESG Leader Rating
Barron’s, 2023 MSCI ESG Ratings, 2023
Named to Among
Carbon Clean200 America’s Most Responsible Companies
Corporate Knights and As You Sow, 2023 Newsweek, 2023
Awarded a Named an
Silver Medal ESG Industry Top-Rated Company
EcoVadis, 2023 Sustainalytics, 2023
Among the Among the
World’s Best Employers World’s Best Companies
Forbes, 2023 TIME, 2023
Among the Founding member of
World’s Most Admired Companies U.S. Green Building Council
Fortune, 2023
Founding member of
Among the International WELL Building Institute
Best Places to Work for LGBTQ+ Equality
Human Rights Campaign Foundation Founding member of
Corporate Equality Index, 2023-2024 Global Food Cold Chain Council
Achieved Member of
Prime ESG Corporate Rating Corporate Coalition for Innovation &
ISS ESG, 2023 Technology toward Net Zero
This report is printed with soy-based inks in a Carrier Global Corporation and its subsidiaries’
facility powered by 100% renewable wind energy. names, abbreviations thereof, logos, and product
All paper used in this report is certified to and service designators are either the registered or
Forest Stewardship Council® (FSC®) standards. unregistered trademarks or trade names of Carrier
The paper for the cover and narrative sections is Global Corporation and its affiliates and subsidiaries.
produced using 80% renewable electricity and Names of other companies, abbreviations thereof,
is manufactured with a minimum of 10% recycled logos of other companies, and product and service
fiber. The paper for the financial section is designators of other companies are either the
manufactured in facilities where more than registered or unregistered trademarks or trade
70% of the energy in their pulp and paper mills names of their respective owners.
comes from renewable biomass fuels.
13995 Pasteur Boulevard
Palm Beach Gardens, FL 33418
www.corporate.carrier.com
Global Leader in Intelligent Climate
and Energy Solutions
Transformation begins with belief. That innovation can make an impact. That taking care of people means taking care of the planet.
That our solutions have the power to improve life today and tomorrow. It is why Carrier is transforming spaces every day. In homes.
In buildings. Across the cold chain. Our inclusive, diverse team combines global and local expertise with an uncompromising
commitment to customers. Together, we deliver intelligent, connected ecosystems and visionary breakthroughs that help support
comfort, health and productivity while promoting sustainable energy usage.
We are Carrier. A global leader in intelligent climate and energy solutions. For people, our planet and generations to come.
The Carrier Way
The Carrier Way is our foundation, our north star. It defines our vision, values and cultural behaviors that allow us to create a
workplace where we work and win, together, and always with a focus on delivering excellence, the right way.
VISION
Our aspiration; why we come to work every day.
Creating solutions that matter for people and our planet.
VALUES
Our absolutes; always do the right thing.
Respect Integrity Inclusion Innovation Excellence
CULTURE
Our behaviors; how we work and win together, while never compromising our values.
Passion for Customers Achieve Results
We win when our customers win. We perform, with integrity.
Play to Win Dare to Disrupt
We strive to be #1 in everything we do. We innovate and pursue sustainable solutions.
Choose Speed Build Best Teams
We focus and move with a bias for action. We develop diverse teams, and empower to move faster.
Code of Ethics and Corporate Policy Manual
Our Code of Ethics focuses on the core values that serve as the foundation of our culture: respect, integrity, inclusion, innovation and
excellence. It embodies our culture and the values that guide how we operate and achieve our goals the right way. Employees are
required to annually review and acknowledge their adherence to our Code of Ethics. We encourage you to visit the Corporate
Responsibility section of our website (www.corporate.carrier.com), to access Carrier’s Code of Ethics, excerpts from our Corporate
Policy Manual and Environmental, Social and Governance ("ESG") framework documents.
MESSAGE FROM OUR LEAD
INDEPENDENT DIRECTOR
Dear Fellow Shareowners,
In 2023, Carrier took bold action to simplify its portfolio and accelerate its journey to
becoming a pure-play global leader in intelligent climate and energy solutions. With the
acquisition of Viessmann Climate Solutions and the planned exit of Carrier’s Fire &
Security segment and commercial refrigeration business, Carrier is becoming a more
focused company, well-positioned to deliver higher growth and superior value to its
shareowners.
The Carrier Board shares the management team’s vision of “performing while
transforming” and is pleased to welcome Maximilian (Max) Viessmann as our newest
director following the successful acquisition of Viessmann Climate Solutions. Max’s
groundbreaking vision in digital transformation and deep knowledge of the climate and
energy industries will be invaluable as Carrier continues to propel its growth strategy.
"Carrier’s transformation is not just 2023 was also a transition year for our Board. I began my tenure as Lead Independent
about adapting to change; it’s about Director, succeeding Dr. J.P. Garnier who, fortunately, has agreed to extend his service on
embracing it. The Carrier Board will the Board until 2025. His extensive global experience and deep understanding of our
continue to help guide Carrier to industry has been and will continue to be invaluable to us during this transformative
sustainable, long-term value period. Michael Todman and Virginia Wilson also ably stepped into new roles in 2023 as
creation and engage with you, our chairs of our Compensation and Governance committees. I am proud to serve on a board
shareowners, along the way." that is so well-positioned to guide Carrier’s management team in its mission to deliver
outsized and sustainable value to shareowners.
Our Board remains committed to maintaining robust oversight, especially on important
governance issues. During the year, responsibility for Carrier's Environment, Social and
Governance programs, goals and objectives was elevated to the full Board. This included
expanding our disclosures, one of which was our submission to the Carbon Disclosure
Project. Additionally, we oversaw the strengthening of Carrier's cybersecurity programs
through enhanced public disclosures, external maturity assessments and a formalized
governance structure to escalate critical cybersecurity risks and incidents to the Board.
To further align the interests of Carrier management with those of its shareowners, we
expanded Carrier’s share ownership requirements in 2023 to apply to all members of
Carrier’s Executive Leadership Team.
Carrier’s transformation is not just about adapting to change; it’s about embracing it. The
Carrier Board will continue to help guide Carrier to sustainable, long-term value creation
and engage with you, our shareowners, along the way. As shareowners, your trust and
support have been instrumental in Carrier’s journey thus far, and we are committed to
delivering long-term, sustainable value to you.
Sincerely,
John J. Greisch
Lead Independent Director
2024 Proxy Statement i
TABLE OF CONTENTS
Message from Our Lead PROPOSAL 2: Advisory Vote to Approve
Independent Director i Named Executive Officer Compensation 32
Compensation Discussion and Analysis 33
Table of Contents ii Report of the Compensation Committee 48
Compensation Tables 49
Notice of 2024 Annual
CEO Pay Ratio 56
Meeting of Shareowners 1
Pay Versus Performance Disclosure 58
Proxy Summary 2
Audit Matters 62
Voting Matters 2
Report of the Audit Committee 62
Director Nominees and Governance 2
Board and Governance Highlights 3 PROPOSAL 3: Ratify Appointment of
Executive Compensation and Performance 4 Independent Auditor for 2024 63
2023 Performance and Business Highlights 5
Independent Auditor 5 PROPOSAL 4: Shareowner Proposal –
Transparency in Lobbying 65
Our Company 6
About Carrier 6 Frequently Asked Questions About the
Our Business Segments 6 Annual Meeting 68
Secular Trends Driving Growth 6
Other Important Information 74
Portfolio Transformation 7
Advancing Solutions for Customers 7
APPENDIX A: Reconciliation of GAAP
Sustainability 8 Measures to Corresponding Non-GAAP
Inclusion & Diversity 10 Measures 76
Carrier Employee Scholar Program 10
Corporate Social Responsibility 10 Important Notice Regarding the Availability of Proxy
Materials for the Annual Meeting of Shareowners to be held
on April 18, 2024. This Notice of the 2024 Annual Meeting of
PROPOSAL 1: Election of Directors 11 Shareowners and Proxy Statement as well as Carrier’s 2023
Annual Report are available free of charge at
Criteria for Board Membership 11 www.proxyvote.com or at www.corporate.carrier.com.
References in either document to our website are for the
The Board’s Self-Evaluation Process 14
convenience of readers, and information available at or through
Board Refreshment and Nomination Process 14 our corporate website is not a part of nor is it incorporated by
Nominees for the 2024 Annual Meeting 15 reference in the Proxy Statement or Annual Report.
Corporate Governance 21 The Board of Directors of Carrier Global Corporation (the
"Board") is soliciting proxies to be voted at our 2024 Annual
Compensation of Directors 28
Meeting of Shareowners on April 18, 2024, and at any
postponed or reconvened meeting. We expect that the Proxy
Share Ownership 30 materials or a notice of internet availability will be mailed and
made available to shareowners beginning on or about
March 5, 2024. At the meeting, votes will be taken on the
matters listed in the Notice of 2024 Annual Meeting
of Shareowners.
ii Carrier Global Corporation
March 5, 2024
NOTICE OF 2024 ANNUAL MEETING
OF SHAREOWNERS
Meeting DATE AND TIME LOCATION
Information April 18, 2024 Virtual Meeting
8:30 a.m. Eastern time www.virtualshareholdermeeting.com/CARR2024
Agenda BOARD READ
RECOMMENDATION MORE
1 Election of the Ten Director Nominees Named in the FOR each Director ► Page 11
Proxy Statement Nominee
2 Advisory Vote to Approve Named Executive FOR ► Page 32
Officer Compensation
3 Ratify Appointment of PricewaterhouseCoopers LLP to FOR ► Page 63
Serve as Independent Auditor for 2024
4 Vote on the Shareowner Proposal set forth in the AGAINST ► Page 65
Proxy Statement, if properly presented
Four voting BY THE INTERNET BY MAIL
methods are Visit the website on your proxy card. Sign, date and return your proxy card in the
available to you. enclosed envelope.
Please review your BY TELEPHONE ONLINE DURING THE MEETING
Proxy Statement Call the telephone number on your Vote online during the meeting by going to:
and vote in one of proxy card. www.virtualshareholdermeeting.com/CARR2024.
the ways
described here.
Your vote is WHO MAY VOTE
important. You are entitled to receive this Notice and to vote at the Annual Meeting if you owned shares of Carrier
common stock at the close of business on February 27, 2024 (the record date for this Annual Meeting).
Please submit your
proxy or voting VIRTUAL MEETING FORMAT
instructions as The 2024 Annual Meeting of Shareowners will be conducted in a virtual format to facilitate attendance and to
soon as possible. provide a consistent experience to all shareowners, regardless of location. The format is designed to ensure
a level of participation commensurate with an in-person meeting and allows shareowners to:
▪ vote and submit questions in advance of the Annual Meeting; and
▪ access a live webcast, vote and submit questions during the Annual Meeting on April 18, 2024.
Please see "Frequently Asked Questions About the Annual Meeting" on page 68 for more information about
participating in the virtual meeting.
By Order of the Board of Directors.
Francesca Campbell
Vice President, Corporate Secretary
2024 Proxy Statement 1
Proposal 1: Proposal 3: Proposal 4:
Our Share Proposal 2: NEO Audit Other
Proxy Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
PROXY SUMMARY
This summary highlights selected information contained elsewhere in this Proxy Statement. It does not contain all of the information
that you should consider, and you should read the entire Proxy Statement carefully before voting.
Voting Matters
We request that you vote on the following proposals at the 2024 Annual Meeting:
Proposal Board Recommendation Page
Proposal 1 Election of the 10 Director Nominees Named in the Proxy Statement Vote FOR each director nominee 11
Proposal 2 Advisory Vote to Approve Named Executive Officer Compensation Vote FOR 32
Proposal 3 Ratify Appointment of PricewaterhouseCoopers LLP to Serve as Vote FOR 63
Independent Auditor for 2024
Proposal 4 Shareowner Proposal – Transparency in Lobbying Vote AGAINST 65
Director Nominees and Governance
Election of Directors
What are you voting on? All nominees are current directors of Carrier and were elected
At the 2024 Annual Meeting,10 director nominees are to be by shareowners at the 2023 Annual Meeting, except for Max
elected to hold office until the 2025 Annual Meeting and until Viessmann who joined the Board in January 2024.
their successors have been elected and qualified.
Our Board recommends a vote FOR each nominee
Susan N. Story, 64 Former President & Chief
Jean-Pierre Garnier, 76 Former Chief Executive Executive Officer, American Water Works
Officer, GlaxoSmithKline plc Company, Inc.
Director Since: 2020 Director Since: 2023
Other Current Directorships: Cellectis S.A. Other Current Directorships: Dominion Energy, Inc.,
Newmont Corporation
Michael A. Todman, 66 Former Vice Chairman,
David L. Gitlin, 54 Chairman & Chief Executive Whirlpool Corporation
Officer, Carrier Global Corporation Director Since: 2020
Director Since: 2020 Other Current Directorships: Brown-Forman
Other Current Directorships: The Boeing Company Corporation, Prudential Financial, Inc., Mondelez
International, Inc.
Max Viessmann, 35 Chief Executive Officer &
John J. Greisch, 68 Former President & Chief
Member of the Executive Board, Viessmann Group
Executive Officer, Hill-Rom Holdings, Inc.
GmbH & Co. KG
Director Since: 2020
Director Since: 2024
Other Current Directorships: Catalent Inc.,
Other Current Directorships: Viessmann Group
Viant Medical
GmbH & Co. KG
Charles M. Holley, Jr., 67 Former Executive Vice Virginia M. Wilson, 69 Former Senior Executive
President & Chief Financial Officer, Wal-Mart Vice President & Chief Financial Officer, Teachers
Stores, Inc. Insurance and Annuity Association of America
Director Since: 2020 Director Since: 2020
Other Current Directorships: Amgen, Inc., Other Current Directorships: Charles River
Phillips 66, Sunrise Group Holdings, LLC Laboratories International, Inc.
Michael M. McNamara, 67 Co-Founder & Chief
Beth A. Wozniak, 59 Chief Executive Officer, nVent
Executive Officer, Samara; Former Chief Executive
Electric plc
Officer, Flex Ltd.
Director Since: 2021
Director Since: 2020
Other Current Directorships: nVent Electric plc
Other Current Directorships: Workday, Inc.
2 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Our Share Proposal 2: NEO Audit Other
Proxy Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Board Nominees Sound Corporate
TENURE AGE Governance
3.3 years average tenure 63 average age
7 members on Board since 3 new Board 3 < 60 1 60-65 6 > 65 years ▪ Regular reviews of strategic
separation from UTC members in last years years direction and priorities
3 years ▪ Regular reviews of significant
risks; active oversight of
DIVERSITY INDEPENDENCE Enterprise Risk Management
4 of 10 (40%) Board nominees are diverse Our 10-member Board of Directors includes ("ERM") program
2 of 5 (40%) Board leadership positions are held our Chairman & Chief Executive Officer, one ▪ Annual review of Board policies,
by diverse members additional non-independent director and governance practices and
Our policy is to build a board representing a broad eight independent directors committee charters
range of personal characteristics and diversity ▪ Annual Board, committee and
All independent directors meet the heightened
of perspectives director evaluations; regular
independence standards for our Audit Committee and
Compensation Committee refreshment actions
3 1 8 2 ▪ 80% of director nominees
Female Racially Diverse Independent Not Independent are independent
(30%) (10%) (80%) (20%) ▪ Robust Lead Independent
Susan N. Story Director with
Virginia M. Wilson Michael A. Todman explicit responsibilities
Beth A. Wozniak
▪ Regular meetings of
independent directors led by
Skills, Experience and Diversity Lead Independent Director
▪ Annual election of all directors
Our director nominees' most significant skills, experience and attributes are highlighted in the following ▪ Majority voting for directors in
matrix. The matrix is intended as a high-level summary and not an exhaustive list of each director's skills uncontested elections
or contributions to the Board. Board committees reflect committee memberships as of the date of
this Proxy Statement. ▪ Rigorous share ownership
requirements for directors and
KEY SKILLS, EXPERIENCES AND ATTRIBUTES senior management
▪ Directors required to hold
company-granted equity
until retirement
BOARD
COMMITTEES ▪ Hedging, short sales and
NAME A C G T
pledging of Carrier
securities prohibited
Jean-Pierre Garnier
▪ Eligible shareowners can make
proposals and nominate
David L. Gitlin
directors through proxy access
John J. Greisch ▪ Shareowners may act by
written consent
Charles M. Holley, Jr.
▪ 15% of shareowners may call
Michael M. McNamara special meetings
▪ No supermajority shareowner
Susan N. Story voting requirements
Michael A. Todman ▪ 98% attendance at Board
meetings in 2023
Max Viessmann ▪ 96% attendance at committee
meetings in 2023
Virginia M. Wilson
Beth A. Wozniak
ATTENDANCE QUALIFICATIONS AND COMMITTEES
ATTRIBUTES
Directors attended 98% of
Financial
Knowledge of A Audit Committee Member
the meetings of the Board Company/Industry
and 96% of the meetings of Human Capital
C Compensation
the committees on which Marketing/Sales Committee Chair
Management
they served in 2023.
Innovation, Digital Risk G Governance
Technology and Management/ Committee
Cybersecurity Oversight
T Technology &
International Senior Leadership
Innovation Committee
Business
Operations
Diversity
2024 Proxy Statement 3
Proposal 1: Proposal 3: Proposal 4:
Our Share Proposal 2: NEO Audit Other
Proxy Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Executive Compensation and Performance
Advisory Vote to Approve Named Executive Officer
(NEO) Compensation
What are you voting on? The Board believes that our compensation policies and
practices are effective in achieving the goals of the
We are asking our shareowners to approve, on an advisory compensation program, and that our actions have been
basis, the compensation paid to Carrier's named executive responsive to shareowner feedback related to last year’s
officers disclosed in this Proxy Statement. We hold say-on-pay vote.
say-on-pay votes annually.
Our Board recommends a vote FOR the say-on-pay proposal
The overall objective of the compensation program is to encourage and reward the creation of sustainable, long-term shareowner
value. The current elements of the executive compensation program directly align the interests of the executives and shareowners,
are competitive, motivate achievement of short- and long-term financial goals and strategic objectives, and align realized pay
with performance.
2023 Executive Compensation Program Principal Components
FORM OF
ELEMENT AWARD PERIOD
BASE
SALARY
Cash One year
ANNUAL
BONUS
Cash One year
Performance-
Stock Appreciation Rights (SARs) At-Risk Pay
Vest after three years Based Pay
LONG-TERM 50%
INCENTIVES
(LTI) Performance Share Units (PSUs)
Vest after three years
50%
CEO 2023 Other NEOs 2023
For the calculations above, total target direct compensation for 2023 includes annual base salary, the target value of annual bonus
compensation and the target value of annual LTI awards, but does not include the target value of other special, one-time grants
(e.g., sign-on or retention equity awards).
4 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Our Share Proposal 2: NEO Audit Other
Proxy Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
2023 Performance and Business Highlights
GAAP Adjusted*
Net sales
(dollars in billions)
Operating profit
(dollars in billions)
Operating margin
(percent)
Earnings per share
(dollars per share)
Net cash flows from
operating activities/
Free cash flow
(dollars in billions)
* See Appendix A beginning on page 76 for information regarding non-GAAP measures and a reconciliation of each non-GAAP measure
to the most comparable GAAP measure.
▪ Carrier delivered strong 2023 operating performance as it started executing ▪ Operating profit was lower compared to 2022 due to the previous year’s
its portfolio transformation. In April 2023, the company announced its gains. Strong price/cost management and productivity drove the increase in
acquisition of Viessmann Climate Solutions, which was completed on adjusted operating profits in 2023.
January 2, 2024.
▪ Operating margin decreased 53% compared with last year primarily due to
▪ The company also announced plans to exit its Fire & Security segment and the portfolio transformation-related activities in 2023, while adjusted
commercial refrigeration business. operating margin expanded 30 basis points despite a ~50-basis-point
headwind from consolidating TCC, reflecting strong price/cost and
▪ 2023 net sales increased 8% year-over-year, with organic sales growth of
productivity performance.
3% primarily due to strong price realization. Carrier gained share in all
major segments and grew aftermarket by double digits for a third ▪ GAAP EPS and adjusted EPS benefited from strong operating performance
consecutive year. along with lower net interest expense and a lower share count. GAAP EPS
decreased as a result of portfolio transformation-related activities.
▪ 2023 GAAP operating profit, operating margin and earnings per share
("EPS") comparisons to 2022 were impacted by portfolio transformation- ▪ Cash from operating activities increased 50% versus the prior year driven
related activities in both periods, including large gains in 2022 associated by strong working capital performance. This also led to a free cash flow
with the increase in our ownership interest in Toshiba Carrier Corporation increase of 50% compared to 2022.
(TCC) and the sale of Chubb.
▪ Adjusting for these and other non-operational items, Carrier had another
year of strong financial performance resulting in double-digit adjusted
operating profit growth and adjusted operating margin expansion.
t
Independent Auditor
Ratify Appointment of Independent Auditor for 2024
What are you voting on?
We are asking our shareowners to ratify the appointment of The Audit Committee and the Board believe that the continued
PricewaterhouseCoopers LLP (“PwC”) as Carrier's retention of PwC as our independent auditor is in the best
independent registered public accounting firm for the fiscal interest of the company and our shareowners.
year ending December 31, 2024.
Our Board recommends a vote FOR the ratification of the appointment of PwC to serve as the
company’s independent auditor for 2024
2024 Proxy Statement 5
Proposal 1: Proposal 3: Proposal 4:
Proxy Share Proposal 2: NEO Audit Other
Summary
Our Company Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
OUR COMPANY
About Carrier
Carrier is a global leader in intelligent climate and energy solutions, with a diverse and world-class workforce. Through our
performance-driven culture, we are creating long-term shareowner value by growing earnings and investing strategically to
strengthen our position in the markets we serve.
Our Business Segments
HVAC
As a global leader in intelligent climate and energy solutions, Carrier is at the forefront of heating, ventilating and
cooling solutions for residential, commercial and industrial customers around the world. Through an industry-leading
family of HVAC brands, our global presence, and our innovative and differentiated digital solutions, we are
transforming the built environment to be more energy efficient, sustainable and autonomous. Our solutions help
customers achieve their targeted outcomes, including Abound, which monitors over 1.1 billion square feet of building
space to help improve indoor air quality, and enhance occupant comfort and productivity.
Refrigeration
Carrier is a global leader in cold chain transport equipment and monitoring solutions with the largest distribution
network of nearly 1,700 dealers, distributors and service centers. We differentiate ourselves with both scale and
technology to serve as a trusted partner throughout the cold chain. We are helping lead the shift toward electrification,
more connected technologies and refrigerants with lower global warming potential. Carrier’s Lynx digital ecosystem
offers a suite of advanced analytics solutions that provides customers with enhanced visibility, increased connectivity
and actionable intelligence across their cold chain operations.
Fire & Security
With industry-leading brands like Kidde, Edwards, LenelS2, Det-Tronics and GST, customers trust us for all their
safety and security needs, from the most complex jobs to the simplest conveniences. We offer a comprehensive suite
of lifecycle solutions, connected technologies, mobile applications and cloud-based services. We lead the market in
innovation, from best-in-class water mist technology with Marioff to industry-first smart, integrated indoor air quality,
smoke and carbon monoxide detectors for the home.
Secular Trends Driving Growth
As a global leader in intelligent climate and energy solutions for buildings and homes, and across the cold chain, Carrier is uniquely
positioned to lean into secular trends that are transforming our industry and the world. These trends include a growing middle class,
climate change, energy security and stability, and digitalization.
As cities grow, competing demands for natural resources strain infrastructure and food supply. Heating and cooling of buildings and
homes, together with food waste, contribute an estimated 25% of annual global greenhouse gas emissions,1 significantly impacting
global warming and climate change.
Carrier is addressing these challenges head-on through breakthrough innovation, electrification, energy-efficient solutions, the use of
refrigerants with lower global warming potential, connected ecosystems and more to help mitigate climate change and help enable
the transition to clean energy.
1
Based on estimates from the International Energy Agency, the U.S. Energy Information Administration and the UNEP Food Waste Index Report 2021.
6 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Proxy Share Proposal 2: NEO Audit Other
Summary
Our Company Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Portfolio Transformation
At Carrier, we are evolving our business to take on the challenges of climate change. On January 2, 2024, we completed the
acquisition of the climate solutions business (the “VCS Business”) of Viessmann Group GmbH & Co. KG (“Viessmann Group”).
The addition positions Carrier as a digitally enabled, end-to-end sustainable climate and energy solutions provider that
addresses all heating, cooling, renewables, solar photovoltaic technology, battery storage and energy management needs for
the home and office.
The combination enhances Carrier’s existing portfolio with access to the iconic Viessmann brand, a leading provider of highly
efficient and renewable climate solutions with a more than 100-year record of innovation and sustainability and a differentiated
direct-to-installer channel model. In addition to our acquisition of Toshiba Carrier Corp. in 2022, Viessmann Climate
Solutions’ 12,000 team members further strengthen Carrier’s position as the leading HVAC provider globally, now positioning
Carrier in the fast-growing residential and light commercial space in Europe.
The acquisition of Viessmann Climate Solutions, together with the planned exits of our Fire & Security segment and commercial
refrigeration business, will transform Carrier into a more focused, higher-growth business, further strengthening the company’s
global leadership position in intelligent climate and energy solutions.
Advancing Solutions for Customers
Creating visionary breakthroughs for a better tomorrow
Carrier develops intelligent climate and energy solutions that support our commitment to achieving net-zero greenhouse gas
emissions across our value chain by 2050. Our comprehensive offerings help customers reach and exceed their goals and stay
ahead of regulatory changes.
We introduced more electric technologies and energy-efficient products to reduce dependency on fossil fuels, and we increased
the use of refrigerants with lower global warming potential. We increased our annual investment in research and development,
investing more than $2 billion in the last four years. In 2023, for the ninth year in a row, we released more than 100 new products.
We also have more than 14,000 active patents and pending patent applications worldwide combined.
Carrier opened four additional i3 Labs in the United States, India, China and Japan. The innovation incubators are creative
spaces where we ignite the development of disruptive technologies and empower our teams to test and develop solutions quickly,
choosing speed to deliver differentiated customer solutions.
Building intelligent, connected ecosystems
We create digital solutions that leverage data-driven insights and artificial intelligence (AI) to help customers achieve their desired
outcomes, while increasing our recurring revenues. Carrier expanded the capabilities and deployment of our key digital platforms,
Abound and Lynx.
Internally, we continued to invest in Carrier IO, a single platform for connecting assets to the cloud. We continued to reduce the
complexity of our enterprise resource planning landscape, enabling more agile and cost-efficient internal operations. In addition,
we implemented digital initiatives to optimize factory operations to expedite time to market, inform decision-making and streamline
overall manufacturing processes.
Our new Generative AI Task Force is guiding the company’s secure and responsible use of AI technology to drive efficiency and
innovation. By applying the power of generative AI, Carrier is tackling a range of high-impact use cases related to operational
efficiency, customer experience and more.
Accelerating aftermarket growth through lifecycle solutions
Our portfolio of digitally enabled lifecycle solutions expanded with offerings such as Abound Net Zero Management, Lynx Logix,
InteliSense and more. Our comprehensive aftermarket offerings include remote monitoring and diagnostics, predictive maintenance,
spare parts, repairs, modifications and upgrades, rentals and other cutting-edge digital services.
For the third consecutive year, Carrier achieved double-digit aftermarket growth in 2023. Our expanded Abound and Lynx offerings
accelerated recurring revenues while helping customers achieve their sustainability goals. Across all business segments, insights
from our connected devices help increase energy efficiency, optimize performance and implement solutions before issues arise.
We also grew our catalog of parts, services and connected solutions.
2024 Proxy Statement 7
Proposal 1: Proposal 3: Proposal 4:
Proxy Share Proposal 2: NEO Audit Other
Summary
Our Company Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Sustainability
Carrier is developing visionary breakthroughs today to create a better tomorrow. Our solutions help customers achieve their
decarbonization targets. We also incorporate sustainable practices throughout our global operations.
Carrier is leading the way to a more sustainable future. Our 2030 ESG goals underscore Carrier’s commitment to the things that
matter and to continuously challenge ourselves to think bigger and to be better. Expanding on three decades of environmental
targets, our goals include measures to improve our planet, our people and our communities through sustainable solutions,
investments and practices. We strive to be a catalyst for positive and sustainable change as we innovate, empower our people and
operate with integrity. That is The Carrier Way.
Learn about our goals and progress at
corporate.carrier.com/esg-report
In addition, Carrier committed to setting near- and long-term greenhouse gas emission reduction goals in line with the Science Based
Targets initiative to limit global warming to 1.5°C. In accordance with this initiative, we unveiled our road map to achieve net-zero
greenhouse gas emissions across our value chain by 2050. We also joined the Corporate Coalition for Innovation & Technology
toward Net Zero, a business alliance dedicated to helping countries meet decarbonization and climate change goals.
Carrier's Road Map to Net Zero
8 Carrier Global Corporation
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Proxy Share Proposal 2: NEO Audit Other
Summary
Our Company Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Sustainable Solutions
Carrier’s road map involves strategically transforming our portfolio through electrification, integration and resilience. By providing
sustainable solutions, we are also advancing toward our goal of helping customers avoid more than 1 gigaton of greenhouse gas
emissions by 2030. Our products, services and digital capabilities help customers meet their energy, carbon and food-waste
reduction goals. Energy-efficient heat pumps, all-electric refrigeration and building solutions, refrigerants with lower global warming
potential and connected technologies are just a few of the ways we are improving efficiencies in buildings, in homes and across the
cold chain.
Sustainable Investments
We have invested more than $965 million in sustainable research and design since 2020. Additionally, our global venture capital
group, Carrier Ventures, expanded its portfolio of strategic partnerships with high-growth companies to accelerate the development of
sustainable innovations and disruptive technologies for building and cold chain net-zero solutions.
We focus on growth areas of electrification, energy management, and residential and light
Sustainable Innovations
commercial HVAC technologies.
We value strategic partnerships that enhance our research and development expertise and
Strategic Collaboration
our channel to market or that become a part of our product offerings.
Disruptive Technologies We prioritize software, analytics and telematics.
We seek out companies that share our core values of respect, integrity, inclusion, innovation
Commitment to Excellence
and excellence.
Sustainable Practices
We incorporate sustainable practices aimed at reducing greenhouse gas emissions, energy consumption, water withdrawal and
waste to landfill. We are expanding the use of high-efficiency equipment, refrigerants with lower global warming potential, electric
technologies and renewable energy. We achieved zero waste to landfill certification at 11 additional manufacturing sites in 2023 by
transitioning to more sustainable methods of waste management.
2024 Proxy Statement 9
Proposal 1: Proposal 3: Proposal 4:
Proxy Share Proposal 2: NEO Audit Other
Summary
Our Company Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Inclusion & Diversity
Our inclusion philosophy, _belong, underscores the importance of culture in a diverse workplace where
everyone can come to work – every day – and feel like they belong. To build upon that philosophy, in 2023, we
introduced ally, outlining our principles for how employees can contribute to building an inclusive culture,
globally. Our ally principles include advocate, listen, learn and yield.
2023 Diversity Representation
Global executive Global women U.S. People of Color U.S. People of Color
diversity* executives executives professionals
27% in 2015 20% in 2015 13% in 2015 18% in 2015
50% 32% 33% 27%
in 2023 in 2023 in 2023 in 2023
* Global women and U.S. People of Color.
Our global Employee Resource Groups (ERGs) include Carrier Black Alliance, Carrier Hispanics & Latinos Employee Engagement
Resource Group, Military & Veterans, Pride, Women Empowerment at Carrier and United Carrier Asian Network. They reflect the
diversity of Carrier’s workforce; foster a culture of inclusion, allyship and sponsorship for all; and continue to be open to all
employees. Our ERGs led sessions on networking and career planning and held grassroots events throughout the year. In Japan,
with our recent acquisition of Toshiba Carrier Corp., we expanded our efforts with the creation of an inclusion and diversity council.
We maintain partnerships with several colleges and universities to strengthen our talent pipeline, and we increased student
participation in our six-week leadership program. Mentors from Carrier led workshops on inclusion and diversity, and
career preparation.
Carrier Employee Scholar Program
Carrier is committed to the continued development and engagement of our people. We promote continuous learning through our
Employee Scholar Program, which covers the cost of an employee’s tuition, academic fees and books at approved universities.
~$175M 50+ 8,800+ 1,300+
invested countries degrees current
since inception with employee participation earned participants
in 1996 since inception since inception
Corporate Social Responsibility
Carrier supports organizations that promote the planet by advancing sustainable climate solutions, people by developing a skilled and
diverse workforce, and the communities in which we live, work and operate. We encourage you to visit the Corporate Responsibility
section of our website (www.corporate.carrier.com) to learn more.
We continued to support Habitat for Humanity through volunteer efforts, financial contributions and product donations from our
Healthy Homes suite of indoor air quality and fire safety solutions. Along with other companies, we also supported trainings at the
United Nations World Food Programme Transport Training Centre in Ghana to enhance cold chain transport and logistics capacities
across West Africa. In addition, our Kidde business continued to grow its award-winning Cause For Alarm fire safety education
initiative to support communities that are at higher risk of residential fires.
10 Carrier Global Corporation
Proposal 3: Proposal 4:
Proxy Our Proposal 1: Election of Share Proposal 2: NEO Audit Other
Independent Shareowner FAQs Appendix
Summary Company Directors Ownership Compensation Matters
Auditor Proposal
Information
PROPOSAL 1
Election of Directors
WHAT ARE YOU VOTING ON?
The Board presents 10 nominees for election as directors at the 2024 Annual Meeting. Each director nominee has consented
to being named as a nominee in the Proxy materials and to serve if elected. Each director elected at the Annual Meeting will
serve until the 2025 Annual Meeting or until a successor is duly qualified and elected.
Our director nominees hold or have held senior positions as leaders of various large and complex global businesses. Our
nominees are or have been chief executive officers, chief financial officers, chief accounting officers and members of senior
management. Through these roles, our nominees have developed expertise in finance, human capital management,
innovation, digital and technology, international business operations, risk management, sustainability, and strategic planning.
With this blend of skills and experience, our directors bring a seasoned and practical understanding of governance, public
policy, compensation and sustainable practices to the Board’s deliberations.
Detailed biographical information for each director nominee follows. We have included career highlights, other directorships
and other leadership and service experience. Our Board considered all of the aforementioned attributes as well as the results
of our annual self-evaluation process when deciding to renominate each of the nominees.
BOARD RECOMMENDATION: Vote FOR each director nominee
Criteria for Board Membership
The Board reviews the appropriate attributes, skills and experience required of directors and the Board as a whole through its
annual self-evaluation process described below. These criteria, which are set forth in Carrier's Corporate Governance Principles,
are designed to reflect Carrier’s evolving business requirements and to promote the long-term interests of Carrier, its shareowners
and other stakeholders.
The Board recognizes that the long-term interests of Carrier and its shareowners are also advanced by responsibly
addressing the concerns of other stakeholders, including Carrier employees, customers, suppliers and communities,
and stewardship of our planet.
Key Attributes
The Board believes that the following attributes are essential for Carrier directors:
▪ Objectivity and independence ▪ Loyalty to the interests of Carrier and its shareowners
▪ Sound judgment ▪ Ability and willingness to devote the time necessary to fulfill
▪ High integrity a director’s duties
▪ Effective collaboration ▪ Ability to contribute to the diversity of perspectives in the
Board’s deliberations
2024 Proxy Statement 11
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Director Independence
Under Carrier's Corporate Governance Principles, a substantial majority of our directors must be independent; meaning that the
director does not have a direct or indirect material relationship with Carrier other than as a director. The Governance Committee
assesses director independence pursuant to the New York Stock Exchange ("NYSE") listing standards, applicable law and Carrier's
Director Independence Policy (the “Policy”), which is available on the Corporate Responsibility section of our website.
Before joining the Board, and annually thereafter, each director completes a questionnaire seeking information about relationships
and transactions that may require disclosure or affect their director responsibilities that may affect the independence determination, or
that may affect the heightened independence standards that apply to members of the Audit Committee and Compensation
Committee. The Governance Committee’s assessment considers all known relevant facts and circumstances about any relationships
bearing on the independence of a director or nominee. The assessment also considers sales and purchases of products and services
between Carrier, including its subsidiaries, and other companies or charitable organizations where a director and a nominee (and
immediate family members) may have relationships that are pertinent to the independence determination.
Based on this assessment, the Board has determined that all of the nominees for election at the 2024 Annual Meeting, except for
Messrs. Gitlin and Viessmann, are independent under NYSE listing standards and the Policy, because none of them has a business,
financial, family or other relationship with Carrier that is considered material. With respect to the two non-independent nominees,
Mr. Gitlin is currently an employee of Carrier, and Mr. Viessmann is the Chief Executive Officer, a member of the Executive Board and
a significant beneficial owner of the Viessmann Group, from which Carrier acquired the VCS Business and with which Carrier has
entered into various related agreements as discussed further below.
Additionally, the Board has determined that each member of the Audit Committee meets the independence requirements for audit
committee membership under the NYSE listing standards and Rule 10A-3(b)(1) under the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). Also, each member of the Compensation Committee and Governance Committee meets the
independence and other requirements for compensation committee and governance committee membership as set forth in the NYSE
listing standards, the company's Corporate Governance Principles and Director Independence Policy, and the rules of the Securities
and Exchange Commission (“SEC”) applicable to boards of directors in general, and compensation committees and governance
committees in particular.
Additional Factors
In addition to the above attributes, in evaluating the suitability of a candidate the Board considers their:
▪ General understanding of global business, finance, risk ▪ Educational and professional background
management, technology and other disciplines, and policy ▪ Personal accomplishments
matters relevant to the success of a large publicly
traded company ▪ Diversity with respect to a broad range of
personal characteristics
▪ Understanding of Carrier’s business and industry
▪ Senior leadership experience
The Board believes that our current directors possess and demonstrate these attributes and diverse perspectives and that they bring
a strong blend of skills and experience to our deliberations.
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Key Skills and Experience
In addition to the attributes expected of each director, the Board, through its self-evaluation process and in consultation with the
Governance Committee, has identified below the skills and experience that are essential to the oversight and implementation of
Carrier’s business and strategy requirements.
We place paramount importance on accurate financial reporting and robust financial
controls and compliance. Therefore, we seek directors who have served in senior
Financial leadership roles of a financial function and/or the management of a large business that has
resulted in a proficiency with complex financial management, financial reporting, capital
allocation, capital markets, and mergers and acquisitions.
Experience in effectively recruiting, engaging, developing and retaining a talented
workforce is crucial. We believe that our employees are our most important asset and that,
Human Capital
in turn, our success and growth depend in large part on our ability to attract, retain and
Management develop a diverse population of talented and high-performing employees at all levels of the
company.
Innovation, Digital, Experience with or oversight of innovation (including developing and adopting new
technologies), digital solutions, engineering, information systems and cybersecurity are skill
Technology and
sets that are vital to overseeing Carrier's transformation from an equipment manufacturer to
Cybersecurity a provider of digitally enabled lifecycle solutions.
International business experience ensures that valued business, political and cultural
International
perspectives are included in the Board’s deliberations. Carrier has operations around the
Business Operations world, and a significant portion of our sales derive from outside the United States.
Knowledge or experience with Carrier’s businesses and/or products and services,
Knowledge of whether acquired through service as a senior leader or as a board member of a relevant
Company/Industry business, affords a deeper understanding of Carrier's strategic, operating, regulatory and
competitive environment.
Marketing and sales experience is beneficial as we focus on forming and strengthening
Marketing/Sales customer relationships to provide our digitally enabled lifecycle solutions that create
recurring revenue opportunities.
Risk Management experience is critical to the Board’s role in overseeing and understanding
Risk Management/
enterprise risk exposures, including compliance, cybersecurity, financial, human capital,
Oversight operational, political, regulatory, reputational and strategic risks.
Extensive leadership experience with a significant enterprise provides a practical
Senior Leadership understanding of Carrier's organization, processes and strategic planning, and the
challenges associated with developing talent and driving change and long-term growth.
The matrix on page 3 displays the most significant skills, experience and attributes of each director. The Governance Committee
regularly reviews the composition of the Board to ensure that it maintains a balance of skills, experience and diversity of perspectives,
and to assess whether there are gaps in light of current and anticipated strategic plans and business requirements.
2024 Proxy Statement 13
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The Board’s Self-Evaluation Process
The Board believes that robust and constructive self-evaluation is an essential element
of good corporate governance. To this end, each year the Board evaluates its own
performance and that of the standing committees and individual directors.
The self-evaluation informs the Board’s consideration of the following: Our Lead Independent
▪ Board leadership and structure Director leads the annual
▪ Membership criteria self-evaluation.
▪ Refreshment objectives, including committee assignments and succession planning
▪ Opportunities to increase the Board’s overall effectiveness, including the addition of
new skills and experience and diverse perspectives
John Greisch, our Lead Independent Director, led the 2023 evaluation process and
conferred with the directors individually to allow for their candid assessments of peer
contributions and performance as well as Board and committee effectiveness.
Mr. Greisch provided a summary of his conversations to the Board, which included
feedback regarding the following topics:
▪ The size and effectiveness of the Board and its committees ▪ The Board's review of strategy and risk, including potential
▪ Board and committee leadership and areas of disruption and ESG oversight
committee assignments ▪ The effectiveness of management's relationship with
▪ The diversity, skills and experience of individual directors the Board
and the Board as a whole ▪ Succession planning for CEO and senior leadership
Board Refreshment and Nomination Process
The Board’s annual evaluation of its effectiveness encompasses the following questions, actions and outcomes, and plays an integral
role in the refreshment and nomination process.
Does the Board have the Based on these 2023-2024 Outcomes
most effective leadership considerations, the Board
and committee structure? adjusts as necessary its ▪ Designated John J. Greisch as Lead
structure, composition, Independent Director
Does the Board have the
recruitment and ▪ Appointed new chairs of Governance Committee and
right membership criteria?
nominations to enhance Compensation Committee
Do the directors reflect the its effectiveness on a
▪ Increased the size of the Board and broadened the
most effective mix of skills continual basis.
and experience and
diversity of perspectives?
} } skills, experience and diversity of its leadership
and members
▪ Refreshed committee membership assignments
▪ Appointed Max Viessmann a director. He brings valuable
expertise in digitalization, sustainability and technology,
and in the climate and energy industries.
▪ Nominated 10 candidates for election at the 2024
Annual Meeting
The Board’s self-evaluation process is expected to contribute to the consideration of each incumbent as part of the refreshment and
nomination process. A shareowner may recommend a director candidate by writing to Carrier’s Corporate Secretary (see "How Do I
Contact the Corporate Secretary's Office" on page 73 for contact information). The Governance Committee or Board also may
engage search firms to assist in identifying and evaluating candidates and to ensure that the Board is considering a larger and more
diverse pool of candidates.
14 Carrier Global Corporation
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The Board believes that new ideas and perspectives are critical to a forward-looking board, as are the valuable experiences and deep
understanding of Carrier’s business that a longer serving director offers. Our Corporate Governance Principles and Bylaws do not
impose term limits on directors because the Board believes that a director who serves for an extended period will often be uniquely
positioned to provide insight and perspective regarding Carrier’s operations and strategic direction. Our Corporate Governance
Principles provide that directors retire at the Annual Meeting after reaching age 75, unless the Board makes an exception to the policy
in special circumstances. Upon the recommendation of the Governance Committee, the Board approved this exception for
Dr. Garnier and nominated him for election at the 2024 Annual Meeting due to his deep and unique understanding of Carrier's
business, industry and growth strategy gained during his tenure as a director of United Technologies Corporation ("UTC"), renamed
Raytheon Technologies Corporation ("Raytheon" or "RTX"), and his extensive experience leading and overseeing European
businesses. The Board believes that Mr. Garnier's unique perspectives, experience and leadership will be critical as Carrier integrates
the VCS Business and completes our announced portfolio transformation.
Nominees for the 2024 Annual Meeting
The Board, upon the recommendation of the Governance Committee, has nominated for election to the Board the 10 individuals
presented in this Proxy Statement. All are current directors of Carrier and were elected by the shareowners at the 2023 Annual
Meeting, except for Mr. Viessmann who joined the Board in January 2024 in connection with the acquisition of the VCS Business.
After joining the Viessmann Group in 2015 to lead its digital transformation efforts, Mr. Viessmann now serves as its Chief Executive
Officer and member of its Executive Board. Mr. Viessmann brings experience to both the Board and the Technology & Innovation
Committee with his global business management, digitalization and alternative energy sources that are invaluable for Carrier's
transformation into a digitally enabled and end-to-end sustainable climate and energy solutions provider.
If, prior to the 2024 Annual Meeting, any nominee becomes unavailable to serve, the Board may select a replacement nominee or
reduce the number of directors to be elected. If the Board selects a replacement nominee before the 2024 Annual Meeting, the proxy
holders will vote the shares for which they serve as proxy for that replacement nominee.
Our Board of Directors recommends a vote FOR the election of each of the
nominees presented in the Proxy.
Jean-Pierre Garnier, Ph.D.
Independent
Former Chief Executive Officer
GlaxoSmithKline plc
AGE: 76 | DIRECTOR SINCE: 2020 | COMMITTEES: Compensation, Technology & Innovation
CAREER HIGHLIGHTS FORMER DIRECTORSHIPS
▪ Advent International (global private equity) ▪ Carmat (non-executive Chairman), 2018 to 2022
▪ Operating Partner, since 2011 ▪ Radius Health, Inc., 2015 to 2022
▪ Pierre Fabre S.A. (pharmaceuticals) ▪ United Technologies Corporation, 1997 to 2020
▪ Chief Executive Officer, 2008 to 2010 ▪ Idorsia Pharmaceuticals Ltd. (non-executive Chairman),
▪ GlaxoSmithKline plc (pharmaceuticals) 2017 to 2020
▪ Chief Executive Officer and Executive Member of the ▪ Actelion Ltd. (non-executive Chairman), 2011 to 2017
Board of Directors, 2000 to 2008 ▪ Renault S.A., 2009 to 2016
▪ SmithKline Beecham plc (pharmaceuticals) ▪ Alzheon, Inc. (non-public), 2015 to 2018
▪ Chief Executive Officer, 2000 OTHER LEADERSHIP EXPERIENCE AND SERVICE
▪ Chief Operating Officer and Executive Member of the ▪ Member, Advisory Board of Newman’s Own Foundation
Board of Directors, 1996 to 2000
▪ Knight Commander of the Order of the British Empire
OTHER CURRENT DIRECTORSHIPS AND COMMITTEES ▪ Officier de la Légion d’Honneur of France
▪ Cellectis S.A., (non-executive Chairman), since 2020
▪ Member, Board of Directors, Max Planck Institute,
2013 to 2019
2024 Proxy Statement 15
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David L. Gitlin
Chairman & Chief Executive Officer
AGE: 54 | DIRECTOR SINCE: 2020 | COMMITTEES: None
CAREER HIGHLIGHTS
▪ Carrier – President, Auxiliary Power, Engine & Control Systems,
▪ Chairman, since 2021 Hamilton Sundstrand
▪ President & Chief Executive Officer, since 2019 – Vice President and General Manager, Power Systems,
▪ United Technologies Corporation (diversified manufacturer) Hamilton Sundstrand
▪ President & Chief Operating Officer, Collins Aerospace – Vice President, Pratt & Whitney Programs,
Systems, 2018 to 2019 Hamilton Sundstrand
▪ President, UTC Aerospace Systems, 2015 to 2018 – General Manager, Rolls-Royce/General Electric
Programs, Hamilton Sundstrand
▪ President, Aircraft Systems, UTC Aerospace Systems,
2013 to 2015 – Various positions at UTC headquarters and Pratt
& Whitney
▪ Various senior positions since joining United Technologies
in 1997, including: OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
– President, Aerospace Customers & Business ▪ The Boeing Company, since 2022
Development, Hamilton Sundstrand (aerospace safety; finance)
John J. Greisch
Lead Independent Director
Former President & Chief Executive Officer
Hill-Rom Holdings, Inc.
AGE: 68 | DIRECTOR SINCE: 2020 | COMMITTEES: Compensation, Technology & Innovation
CAREER HIGHLIGHTS OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
▪ TPG Capital (global private equity) ▪ Catalent, Inc., since 2023 (executive chair)
▪ Senior Advisor, since 2018 ▪ Viant Medical (non-public) (non-executive Chairman), since
▪ Hill-Rom Holdings, Inc. (medical technology) 2018
▪ President & Chief Executive Officer, 2010 to 2018 FORMER DIRECTORSHIPS
▪ Baxter International, Inc. (health care) ▪ Cerner Corporation, 2019 to 2022
▪ President, International Operations, 2006 to 2009 ▪ Idorsia Pharmaceuticals Ltd., 2017 to 2020
▪ Chief Financial Officer, 2004 to 2006 ▪ Hill-Rom Holdings, Inc., 2010 to 2018
▪ President, Bioscience, 2003 to 2004 ▪ Actelion Ltd., 2013 to 2017
▪ FleetPride Corporation (truck and trailer parts distributor) OTHER LEADERSHIP EXPERIENCE AND SERVICE
▪ President & Chief Executive Officer, 1998 to 2001
▪ Member, Board of Directors, Ann & Robert H. Lurie
▪ The Interlake Corporation (metal products), various positions, Children’s Hospital of Chicago
1986 to 1997
▪ Price Waterhouse (public accounting), various positions,
1978 to 1985
16 Carrier Global Corporation
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Charles M. Holley, Jr.
Independent
Former Executive Vice President & Chief Financial Officer
Wal-Mart Stores, Inc.
AGE: 67 | DIRECTOR SINCE: 2020 | COMMITTEES: Audit (Chair), Governance
CAREER HIGHLIGHTS OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
▪ Wal-Mart Stores, Inc. (retail and eCommerce) ▪ Amgen, Inc., since 2017 (audit, chair; governance)
▪ Executive Vice President, 2016 ▪ Phillips 66, since 2019 (audit; public policy; sustainability)
▪ Sunrise Group Holdings, LLC (non-public), since 2023
▪ Executive Vice President & Chief Financial Officer,
2010 to 2015 OTHER LEADERSHIP EXPERIENCE AND SERVICE
▪ Executive Vice President, Finance and Treasurer, ▪ Member, Dean’s Advisory Board, McCombs School of
2007 to 2010 Business, The University of Texas at Austin
▪ Senior Vice President, Finance, 2005 to 2007 ▪ Member, Presidents’ Development Board, The University of
▪ Senior Vice President & Controller, 2003 to 2005 Texas at Austin
▪ Various roles with Wal-Mart International, 1994 to 2002 ▪ Member, MSB Foundation, The University of Texas at Austin
▪ Deloitte LLP (public accounting)
▪ Independent Senior Advisor, U.S. CFO Program,
2016 to 2019
▪ Tandy Corporation (electronics retailer), various roles
▪ Ernst & Young LLP (public accounting), various roles
Michael M. McNamara
Independent
Co-Founder & Chief Former Chief Executive Officer
Executive Officer Flex Ltd.
Samara
AGE: 67 | DIRECTOR SINCE: 2020 | COMMITTEES: Governance, Technology &
Innovation (Chair)
CAREER HIGHLIGHTS FORMER DIRECTORSHIPS
▪ Samara (backyard home manufacturer) ▪ PCH International Holdings (non-executive Chairman),
▪ Co-Founder and Chief Executive Officer, since 2022 2019 to 2023
▪ Airbnb, Inc. (Samara division) ▪ Skyryse, 2019 to 2022
▪ Head, 2020 to 2022 ▪ Slack Technologies, Inc., 2019 to 2021
▪ Eclipse Ventures (venture capital) ▪ Flex Ltd., 2005 to 2018
▪ Venture partner, 2019 to 2022 ▪ Delphi Corporation, 2009 to 2012
▪ Flex Ltd. (product development firm) ▪ MEMC Corporation, 2007 to 2011
▪ Chief Executive Officer, 2006 to 2018 OTHER LEADERSHIP EXPERIENCE AND SERVICE
▪ Various roles since joining Flex Ltd. in 1994, including ▪ Member, Advisory Board, New Legacy Opportunity Fund
Chief Operating Officer ▪ Member, Visiting Committee Advisory Board, MIT Sloan
OTHER CURRENT DIRECTORSHIPS AND COMMITTEES School of Management
▪ Workday, Inc., since 2011 (audit; governance)
2024 Proxy Statement 17
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Susan N. Story
Independent
Former President & Chief Executive Officer
American Water Works Company, Inc.
AGE: 64 | DIRECTOR SINCE: 2023 | COMMITTEES: Audit, Compensation
CAREER HIGHLIGHTS OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
▪ American Water Works Company, Inc. (water and ▪ Dominion Energy, Inc., since 2017 (sustainability and
wastewater utility) corporate responsibility, chair; finance & risk oversight;
compensation and talent development)
▪ President and Chief Executive Officer, 2014 to 2020
▪ Newmont Corporation, since 2020 (audit)
▪ Senior Vice President and Chief Financial Officer,
2013 to 2014 FORMER DIRECTORSHIPS
▪ Southern Company (gas and electric utility holding company) ▪ Raymond James Financial, Inc., 2008 to 2023 (former Lead
Independent Director)
▪ Chief Executive Officer, Southern Company Services, Inc.,
and Executive Vice President, Southern Company, ▪ American Water Works Company, Inc., 2014 to 2020
2011 to 2013 OTHER LEADERSHIP EXPERIENCE AND SERVICE
▪ President and Chief Executive Officer, Gulf Power ▪ Board of Advisors, H. Lee Moffitt Cancer Center and
Company, Inc., 2003 to 2010 Research Institute
▪ Executive Vice President, Engineering and Construction,
2001 to 2003
▪ Senior Vice President, Southern Power Company,
2001 to 2003
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Michael A. Todman
Independent
Former Vice Chairman
Whirlpool Corporation
AGE: 66 | DIRECTOR SINCE: 2020 | COMMITTEES: Audit, Compensation (Chair)
CAREER HIGHLIGHTS FORMER DIRECTORSHIPS
▪ Whirlpool Corporation (home appliances and ▪ Newell Brands, Inc., 2007 to 2020
related products) ▪ Whirlpool Corporation, 2006 to 2015
▪ Vice Chairman, 2014 to 2015
OTHER LEADERSHIP EXPERIENCE AND SERVICE
▪ President, Whirlpool International, 2006 to 2007 and
▪ Chairman, Board of Directors, Boys & Girls Clubs of Benton
2009 to 2014
Harbor, Michigan
▪ President, Whirlpool North America, 2007 to 2009
▪ President, Whirlpool Foundation
▪ Executive Vice President, Whirlpool Corporation, and
▪ Board of Directors, Corewell Health
President, Whirlpool Europe, 2001 to 2005
▪ Board of Directors, Cornerstone Alliance
▪ Various capacities since joining Whirlpool in 1993,
including management, operations, sales and marketing
positions in North America and Europe
▪ Wang Laboratories, Inc., (computers), various roles
▪ Price Waterhouse (public accounting), various roles
OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
▪ Brown-Forman Corporation, since 2014 (lead independent
director; audit, chair; governance and nominating)
▪ Prudential Financial, Inc., since 2016 (lead independent
director; compensation and human capital, chair; executive,
chair; finance)
▪ Mondelez International, Inc., since 2020 (people and
compensation, chair; governance)
Max Viessmann
Chief Executive Officer & Member of the Executive Board
Viessmann Group GmbH & Co. KG
AGE: 35 | DIRECTOR SINCE: 2024 | COMMITTEES: Technology & Innovation
CAREER HIGHLIGHTS OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
▪ Viessmann Group, since 2015 ▪ Viessmann Group, since 2017
▪ Chief Executive Officer and Member of the Executive OTHER LEADERSHIP EXPERIENCE AND SERVICE
Board, since 2017
▪ Chairman, Advisory Council of the German Cancer
▪ The Boston Consulting Group, 2013-2015 Research Center
▪ Angel investor in Europe and Asia, since 2011
2024 Proxy Statement 19
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Virginia M. Wilson
Independent
Former Senior Executive Vice President & Chief Financial Officer
Teachers Insurance and Annuity Association of America
AGE: 69 | DIRECTOR SINCE: 2020 | COMMITTEES: Audit, Governance (Chair)
CAREER HIGHLIGHTS OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
▪ Teachers Insurance and Annuity Association of America ▪ Charles River Laboratories International, Inc., since 2019
(financial services) (audit, chair; governance)
▪ Senior Executive Vice President & Chief Financial Officer, FORMER DIRECTORSHIPS
2010 to 2019
▪ Conduent, Inc., 2017 to 2020
▪ Wyndham Worldwide (hospitality)
▪ Executive Vice President & Chief Financial Officer, OTHER LEADERSHIP EXPERIENCE AND SERVICE
2006 to 2009 ▪ Member, Board of Trustees, Catholic Charities of the
▪ Cendant Corporation (consumer services in real estate and Archdiocese of New York
travel industries)
▪ Executive Vice President & Chief Accounting Officer,
2003 to 2006
▪ MetLife, Inc. (insurance)
▪ Senior Vice President & Controller, 1999 to 2003
▪ Transamerica Life Insurance Companies
▪ Senior Vice President & Controller and other finance roles,
life insurance division, 1995 to 1999
▪ Deloitte & Touche LLP (public accounting)
▪ Audit partner
Beth A. Wozniak
Independent
Chair and Chief Executive Officer
nVent Electric plc
AGE: 59 | DIRECTOR SINCE: 2021 | COMMITTEES: Governance, Technology & Innovation
CAREER HIGHLIGHTS OTHER CURRENT DIRECTORSHIPS AND COMMITTEES
▪ nVent Electric plc (global provider of electrical connection ▪ nVent Electric plc, since 2018
and protection solutions)
OTHER LEADERSHIP EXPERIENCE AND SERVICE
▪ Chair and Chief Executive Officer, since 2023
▪ Officer and Vice-Chair, National Electrical Manufacturers
▪ Chief Executive Officer and Director, 2018 to 2023 Association (NEMA)
▪ Pentair plc (industrial manufacturing)
▪ President, Electrical segment, 2017 to 2018
▪ President, Flow & Filtration Solutions global business unit,
2015 to 2016
▪ Honeywell International, Inc. (technology and manufacturing)
and its predecessor Allied Signal Inc.
▪ Various executive leadership and program management
positions from 1990 to 2015, including:
– President, Environmental and Combustion
Controls business
– President, Sensing and Control business
– Vice President, Business Integration
– Vice President, Six Sigma
– Vice President, Engineering and Program Management
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Corporate Governance
Our Commitment to Sound Corporate Governance Practices
As the summary on page 3 demonstrates, Carrier is committed to strong corporate governance practices. Our governance framework
enables our independent, experienced and accomplished directors to provide advice, insight and oversight that promotes the
long-term interests of the company, our shareowners and other stakeholders.
We encourage you to visit the Corporate Responsibility section of our website (see page 10), where you can access Carrier’s
governance documents. These documents reflect our commitment to integrity, transparent financial reporting and strong financial
controls, our approach to corporate governance and risk management, and our commitment to the environment and sustainability.
These documents include:
▪ Certificate of Incorporation
▪ Bylaws
▪ Corporate Governance Principles
▪ Board Committee Charters
▪ Director Independence Policy
▪ Related Person Transactions Policy
▪ Share Ownership Requirements
▪ Code of Ethics and excerpts from Carrier's Corporate Policy Manual
▪ Information about the Carrier Integrity Line for Anonymous Reporting that allows employees and other stakeholders to ask
questions or raise concerns confidentially and outside the usual management channels
▪ Information about how to communicate concerns with our Board, Lead Independent Director or one or more
independent directors
▪ 2023 Environmental, Social & Governance Report
▪ 2030 Environmental, Social & Governance Goals
Significant Corporate Governance Actions
The Board consistently demonstrates its commitment to sound corporate governance practices, policies and procedures designed
to ensure that our Board effectively exercises its oversight role. We have implemented a number of actions over time to increase
shareowner rights, enhance the Board’s structure, and augment our commitment to sustainability and corporate responsibility.
In 2023, these actions included board refreshments, enhancing cybersecurity oversight, expanding climate-related disclosures and
increasing alignment of senior management interests to company performance.
Increased Diversity of Perspectives
During 2023 and 2024, we appointed Ms. Story and Mr. Viessmann to the Board. Their diverse skills, experience, and backgrounds
bring new perspectives and expertise to our Board and to the committees on which they serve. We also realigned committee
assignments and elected new chairs to our Compensation and Governance committees, additions that we believe add new insights
and diversification to our committees.
Strengthened Alignment of Management's Interests with Carrier Performance
In 2023, the Board strengthened the alignment of senior management's interests to Carrier's financial performance with the adoption
of a new standalone Clawback Policy that requires the Board to pursue clawback for any incentive compensation paid during the prior
three years to Section 16 officers that is based on performance measures that are the subject of a subsequent financial restatement.
The clawback amount is the portion of incentive compensation that would not have been received if the restated financials had been
used to calculate the compensation. This Clawback Policy is in addition to the existing clawback provisions set forth in our Long-Term
Incentive Plan (the "LTI Plan") and Annual Bonus Plan, which allow the company to claw back LTI and bonus awards for reasons
including misconduct, negligence or violations of certain post-employment covenants as discussed in greater detail in the
"Compensation Discussion and Analysis" that begins on page 33. In addition to the Clawback Policy, the Compensation Committee,
acting on behalf of the Board, also amended its Share Ownership Policy to extend share ownership requirements to all Executive
Leadership Team ("ELT") members not previously covered under the policy. The Share Ownership Policy requires ELT members to
own common stock (including RSUs and DSUs, but excluding stock options, SARs and unvested PSUs) that are equal in value to a
position-specific multiplier of their then applicable base salary within five years of attaining their positions. It is the Committee's
opinion that expanding such ownership requirements, which previously only applied to Directors and certain NEOs, further
encourages the alignment of management and shareowner interests.
2024 Proxy Statement 21
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Enhanced Cybersecurity Governance
Our Board understands the importance of maintaining a secure environment for our products, data and systems that effectively
support our business objectives and customer needs. We have taken measures to improve and update our cybersecurity program,
including increasing our cybersecurity disclosures, establishing a cadence for regular updates from our cybersecurity teams to the
Audit Committee and Board, and overseeing assessments of the program's maturity and compliance with international cybersecurity
standards. The Board also oversaw the creation of a management committee composed of several ELT members responsible for
overseeing and escalating to the Board, as appropriate, critical cybersecurity risks and incidents. Additional details on how we
manage risks, including risks associated with cybersecurity, are set forth in “How We Manage Risk” on page 25.
Board Leadership Structure
Chairman and CEO Roles
The Board does not have a policy about whether the roles of Chairman of the Board and Chief Executive Officer ("CEO") should be
separate or combined. Rather, under our Corporate Governance Principles, the Board has flexibility to choose the leadership
structure that it believes will provide the most effective leadership and oversight for the company and its growth strategy. The
Governance Committee routinely reviews our governance practices and Board leadership structure, and the Board selects the
structure that it believes provides the most effective leadership and oversight for the company. In making this decision, the Board
considers a range of factors, including the company’s operating and financial performance, recent or anticipated changes in the CEO
role, the effectiveness of the processes and structures for Board interaction with and oversight of management, and the importance of
maintaining a single voice in leadership communications and Board oversight, both internally and externally, including with investors.
Combined Role of Chairman and CEO under David Gitlin
David Gitlin, Carrier's CEO, has served in the position of Chairman of the Board since April 2021. The Board again elected Mr. Gitlin
to this role in April 2023, and it continues to believe that the interests of shareowners are best served at this time if the roles of
Chairman and CEO remain combined in Mr. Gitlin. The Board's belief is based on the following:
▪ Mr. Gitlin has served as President & CEO of Carrier since June 2019 and as a director since UTC, renamed Raytheon, completed
the spinoff of Carrier (the "Separation") into an independent publicly traded company.
▪ Before joining Carrier, he had been a 22-year veteran of UTC and held numerous senior positions, including President & Chief
Operating Officer of Collins Aerospace Systems, which in 2019 had annual net sales of $26 billion, and President of UTC
Aerospace Systems.
▪ Through the Separation from UTC and the transformation of Carrier into an independent public company, Mr. Gitlin demonstrated
strategic vision and effective leadership.
▪ During 2023, Mr. Gitlin's leadership and vision were critical to executing Carrier's announced transformation into a pure-play global
leader in intelligent climate and energy solutions through the acquisition of the VCS Business and divestiture of the Fire & Security
and commercial refrigeration businesses.
▪ In the midst of the portfolio transformation, Mr. Gitlin has continued to demonstrate effective leadership by delivering strong and
consistent year-over-year growth (see "2023 Performance and Business Highlights" on page 5), while executing on strategic
priorities, including the completion of the acquisition of the VCS Business and the entry into agreements to sell the security access
and commercial refrigeration businesses.
▪ Mr. Gitlin has the requisite vision, experience and business acumen to lead the Board as well as the company.
▪ He has fostered a strong working relationship between the Board and management through transparency and receptiveness to
new ideas and approaches, active and effective engagement with investors and other stakeholders, and by cultivating accessibility
to the management team.
▪ The combined roles of Chairman and CEO promote decisive, unified leadership as Carrier continues to transform its businesses
and operations and to implement its long-term growth strategy.
▪ As delineated in the Corporate Governance Principles, the Board has maintained a robust role for the Lead Independent Director,
and Dr. Garnier and Mr. Greisch have exhibited strong and consistent leadership fulfilling that role and, along with the other
independent directors, exercised active oversight of the Chairman and CEO.
▪ As demonstrated on pages 3 and 21 through 27, the Board has maintained and continually refined strong governance practices
that ensure robust independent oversight, shareowner feedback, and Board and management accountability.
22 Carrier Global Corporation
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Information
Lead Independent Director Responsibilities
As expressly set forth in our Corporate Governance Principles, the Board designates a non-employee director to serve as Lead
Independent Director when the Chairman is not independent. The Lead Independent Director’s responsibilities include the following
and essentially mirror a non-executive Chairman’s responsibilities:
▪ May call and preside over private sessions of the ▪ Oversees the performance evaluation and compensation
independent directors of the CEO
▪ May call special meetings of the Board and preside over ▪ Facilitates succession planning and management
such meetings when the Chairman is not present development
▪ Serves as liaison between the non-employee directors and ▪ Facilitates the Board’s annual self-evaluation process
the Chairman ▪ Authorizes the retention of outside advisors and
▪ Engages with significant constituencies, as requested consultants who report to the Board on board-wide issues
▪ Works with the Chairman to plan and set the agenda for
Board meetings
The Board believes that a Lead Independent Director with well-defined responsibilities enhances the effectiveness of the independent
directors, improves risk management and oversight, and provides a channel for independent directors to candidly raise issues or
concerns for the Board’s consideration.
Board Responsibilities and Meetings
The Board and our directors operate pursuant to Carrier's Certificate of Incorporation, Bylaws, Corporate Governance Principles,
Director Independence Policy, Related Persons Transaction Policy, Share Ownership Requirements Policy and Code of Ethics – all of
which are available on the Corporate Responsibility section of our website (see page 10).
Chair: David L. Gitlin Primary Responsibilities:
Lead Independent Director: ▪ Oversees Carrier's strategy, business and affairs in the best interests of Carrier and its shareowners
John J. Greisch ▪ Advances the long-term interests of Carrier and its shareowners while also responsibly addressing the
Meetings: 6 Stated Meetings concerns of other stakeholders, including Carrier employees, customers, suppliers and communities
(additional Special Meetings ▪ Oversees Carrier's ESG program, including climate-related matters, and delegates to one or more
as required) standing committees oversight of certain program elements
▪ Reviews, approves and monitors business strategies and objectives
▪ Oversees significant risks and risk management activities, pursuant to Carrier's Enterprise Risk
Management ("ERM") program
▪ Selects, evaluates and plans succession of senior executive management, including the CEO
▪ Elects/designates Board and committee leadership and committee members
▪ Undertakes annual self-evaluation and regular refreshment actions, and selects director nominees for
annual election
▪ Establishes and enhances corporate policies and governance practices that promote and maintain the
integrity of Carrier and respect the interests of our shareowners
Our Board engages with, provides informed and meaningful guidance and feedback to, and maintains an open dialogue with
management primarily through stated meetings and additional special meetings where required. At each stated meeting, the agenda
typically includes a review of the company’s financial results and outlook, a briefing on aspects of our long-term strategy, committee
reports, and other matters whether requested by the directors or deemed pertinent by management. In addition, the Board and senior
management hold an annual strategic planning session in October.
The Board met seven times in 2023. Together, directors attended 98% of the meetings of the Board and 96% of meetings of
committees on which they served during 2023.
Carrier’s independent directors meet in regularly scheduled executive sessions without management and in additional sessions
when requested. These sessions are led by our Lead Independent Director and typically occur before and/or after Board meetings.
The Board met in executive session without management present during six of its seven meetings in 2023.
To prepare for Board and committee meetings, the directors receive the agenda and materials in advance to facilitate more informed
discussion and decision-making.
Directors are encouraged to attend the Annual Meeting. All our directors at the time attended the 2023 Annual Meeting, which was
held virtually.
2024 Proxy Statement 23
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Information
Committee Responsibilities, Composition and Meetings
The Board has four standing committees: Audit, Compensation, Governance and Technology & Innovation. The Audit, Compensation,
and Governance committees are composed exclusively of independent directors. All four committees operate pursuant to a written
charter – all of which are available on the Corporate Governance section of our website (see page 21). Each charter is periodically
reviewed by the respective committee to determine whether it should be updated to reflect best practices and/or director feedback.
Committee meetings are generally held in conjunction with stated Board meetings, and additional meetings of the Audit Committee
are held to review quarterly reports before filing with the SEC. The committees may meet more frequently, if necessary. Each
committee has the authority to retain independent advisors to assist in the performance of its responsibilities.
Audit Committee
Chair: Charles M. Holley, Jr. Primary Responsibilities:
Susan N. Story ▪ Assists the Board in overseeing the integrity of Carrier’s financial statements and disclosures in Carrier's
Michael A. Todman Form 10-Q and 10-K, including climate- and cybersecurity-related disclosures; the independence,
Virginia M. Wilson qualifications and performance of Carrier’s independent auditors and internal audit function; the
company’s compliance with its policies and procedures, internal controls, Code of Ethics and applicable
Meetings: 8 laws and regulations; and the policies and practices of Carrier's ERM program; financial risks and other
significant areas of risk, including compliance- and cybersecurity-related risks
▪ Recommends to the Board the appointment of the independent auditor for ratification by shareowners
▪ Responsible for compensation, retention and oversight of the independent auditor
▪ Preapproves all audit services and permitted non-audit services to be performed for Carrier by its
independent auditor
▪ Reviews and approves the appointment and replacement of the senior Internal Audit executive
In January 2024, the Board determined that each of Messrs. Holley and Todman and Mses. Story and Wilson are “audit committee
financial experts” as that term is defined in SEC rules, and that each has accounting and financial management expertise as provided
under the rules of the NYSE.
Compensation Committee
Chair: Michael A. Todman Primary Responsibilities:
Jean-Pierre Garnier ▪ Reviews Carrier’s executive compensation plans, practices and policies to ensure that they adequately
John J. Greisch and appropriately align executive and shareowner interests, and mitigate compensation-based risk
Susan N. Story ▪ Establishes and determines the satisfaction of performance goals for Carrier’s bonus plans for
Meetings: 5 executives, including performance goals for senior executives related to the implementation of Carrier's
ESG program
▪ Approves the annual objectives of the CEO and leads an evaluation of the CEO's performance against
such objectives
▪ Approves the compensation of the CEO, Section 16 officers and certain other senior executives
▪ Reviews and approves Carrier’s practices for annual and LTI awards
▪ Reviews a risk assessment of Carrier’s compensation policies, plans and practices
▪ Reviews and monitors Carrier's employee engagement and inclusion and diversity programs, and
related initiatives and goals of Carrier's ESG program, and conducts regular pay equity reviews of
Carrier's compensation programs
▪ Reviews and approves the Compensation Discussion and Analysis, Compensation Committee Report,
and statements regarding shareowner advisory votes on executive compensation and frequency of such
votes in Carrier's proxy statement.
In January 2024, the Board determined that each of Messrs. Garnier, Greisch and Todman and Ms. Story are "non-employee
directors" as that term is defined in the SEC rules.
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Information
Governance Committee
Chair: Virginia M. Wilson Primary Responsibilities:
Charles M. Holley ▪ Identifies and recommends qualified candidates for election to the Board
Michael M. McNamara ▪ Reviews and recommends appropriate amendments to Corporate Governance Principles and other
Beth A. Wozniak Board policies
Meetings: 3 ▪ Recommends appropriate compensation of non-employee directors
▪ Submits to the Board recommendations for committee assignments and leadership
▪ Oversees the orientation of new Board members and the continuing education of all directors
▪ Assists the Board in its oversight responsibilities related to Carrier's corporate governance framework,
charitable and philanthropic activities, environmental, health and safety programs and related ESG
goals and initiatives, government relations (including the Carrier Political Action Committee ["Carrier
PAC"] and political expenditures), product integrity programs, and positions on significant public issues
Technology & Innovation Committee
Chair: Michael M. McNamara Primary Responsibilities:
Jean-Pierre Garnier ▪ Monitors technology and digital developments and trends, including those in the field of sustainability that
John J. Greisch could have a material impact on Carrier, its customers and suppliers
Max Viessmann ▪ Oversees Carrier's innovation strategy and its impact on Carrier’s performance, growth and
Beth A. Wozniak competitive position
Meetings: 3 ▪ Evaluates Carrier’s competitiveness from a technology, digital and innovation standpoint
▪ Assists the Board in overseeing Carrier’s strategy, risk management and ESG programs, including
technology, innovation and sustainability initiatives and risks
▪ Supports, as requested, the Governance Committee in its oversight of Carrier's environmental, health
and safety and product integrity programs, and the Audit Committee in its oversight of information
technology and cybersecurity programs
How We Manage Risk
Our Risk Management Framework
Carrier encounters an extensive range of risks, including compliance, financial, geopolitical, legal, operational, regulatory, reputational
and strategic. Within these broad categories, specific risks include: climate impacts; cybersecurity; the competitive landscape
(including disruptive technologies); human capital management (including talent acquisition, development and retention); logistics and
supply chain; and the impact of disruptive events (including natural disasters and pandemics).
To manage these and other risks, we have implemented an ERM program, which is a companywide effort that is managed by senior
executives and overseen by the Audit Committee and Board to identify, assess, manage, report and monitor enterprise risks that may
affect our ability to achieve the company’s objectives and strategy.
As part of the ERM program, ownership of enterprise risk is assigned to the appropriate business segment or corporate function that
is responsible for developing and implementing comprehensive mitigation plans. The Board reviews these risks and mitigation plans
on an annual basis in conjunction with Carrier's strategic plan. Mitigation plans are reviewed for effectiveness and include a broad
range of measures to manage and reduce risk, including adjustments to strategic and business initiatives, research and development,
product design, increased protections for our facilities and supply chain, and enhanced internal controls, including employee and
contractor training.
The Board and committees also review enterprise risks with senior management on an on-going basis throughout the year. Each
committee has primary risk oversight responsibility in the areas that align with its focus and charter responsibilities as described in the
table on the following page. At each regular meeting, or more frequently as needed, the Board receives and considers committee
reports that provide additional detail on risk management issues and management’s response to them. For example, cybersecurity
risk is an enterprise risk that the Audit Committee and the Board oversee and review, with four briefings to the Audit Committee and
one briefing to the Board.
2024 Proxy Statement 25
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The Board’s Role in Risk Management
The full Board is responsible for Carrier’s strategic risks, while the Audit Committee oversees the company’s ERM policies and
practices. Responsibility for the oversight of specific risk categories is allocated among the Board and its committees as follows:
Full Board of Directors
▪ Major strategies and business objectives, including Carrier's ESG program and related goals
▪ Significant risks and risk management activities, including climate-related risks, pursuant to Carrier's ERM program
▪ Succession planning
Audit Compensation Governance Technology & Innovation
Committee Committee Committee Committee
▪ ERM policies and practices ▪ Compensation and ▪ Charitable and ▪ Developments and trends
▪ Capital structure and benefit policies philanthropic policies in technology and digital,
significant capital ▪ Compensation of select ▪ Conflicts of interest including sustainability
appropriations senior leaders ▪ Disruption risk by technology
▪ Corporate governance
▪ Compliance program ▪ Compensation plan design and digital developments
▪ Director independence
▪ Cybersecurity risks and compensation- ▪ Effectiveness of Carrier's
related risk ▪ Environment, health technology and digital
▪ Financial reporting and and safety strategy and innovation
related internal controls, ▪ Employee engagement and
Inclusion & Diversity ▪ Government relations, programs
including climate- and
including Carrier PAC and
cybersecurity-related ▪ Incentive plan performance
political expenditures
disclosures metrics and goals, including
those related to ▪ Positions on public issues
▪ Foreign exchange,
interest rates and raw implementation of Carrier's ▪ Product integrity
material hedging ESG program
▪ Significant operational risks ▪ Pay equity
Succession Planning
On an annual basis, the CEO and Chief Human Resources Officer ("CHRO") provide the Board with information about succession
planning for key senior leadership roles, including the CEO. Succession plans include a readiness assessment, biographical
information and future career development plans. The Board’s views are incorporated into succession plans, which are updated
annually based on this feedback. This output is the culmination of a broader, bottoms-up succession planning review and
high-potential identification process that Carrier conducts across the organization on an annual basis.
Government Relations and Public Policy Activities
Carrier engages in political activity and public policy advocacy on issues that impact the company’s business – whether at the local,
state or federal level in the United States, or with foreign governments and international governmental organizations.
The Board believes that participating in the legislative and regulatory process is an important part of responsible corporate citizenship
and that Carrier and its employees have a legitimate interest in public policy debates. The Governance Committee and Board review
and monitor the company’s government relations activities, including those of the Carrier PAC. These activities are governed by and
conducted in accordance with the standards articulated in our Code of Ethics and corporate policy on Government Relations, both of
which are available on the company’s website.
Carrier’s government relations initiatives are intended to educate and inform officials and the public on a broad range of public
policy issues that are important to our business and consistent with the best interests of the company, our shareowners and our
other stakeholders. These initiatives are not based on the personal agendas of individual shareowners or Carrier’s directors, officers
or employees.
The company does not make political contributions to candidates for U.S. federal office and, as a matter of policy, does not contribute
to candidates for state or local office in the United States or for offices in foreign countries. The Carrier PAC, which is entirely funded
by voluntary contributions, is nonpartisan and contributes to candidates for federal office who are supportive of Carrier’s corporate
business interests and public policy goals, regardless of political party.
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Shareowner Engagement
The Board and management believe in transparent and open communication with investors. Management routinely engages with
our shareowners, and offers them an opportunity to discuss with management a wide range of subjects.
Shareowner Engagement in 2023
Proactive engagement with Management hosted an Discussions with our largest
institutional investors holding investor event shareowners after filing our
more than 415 million shares featuring Max Viessmann at
2023 Proxy Statement
of Carrier common stock Carrier’s headquarters in
Palm Beach Gardens,
Florida, in September
Topics Discussed
2023 Topics Discussed Expected 2024 Topics
▪ Business strategy ▪ Carrier’s portfolio transformation
▪ Capital allocation ▪ Strategy
▪ Executive compensation ▪ Carrier’s sustainability targets and commitments, including
those related to 2030 ESG Goals
▪ Financial performance
▪ Governance
Director Orientation and Education
Director Orientation
New directors participate in an orientation to familiarize them with Carrier and the roles and responsibilities of the Board, including
topics tailored to each director’s committee assignments. New directors also learn about the company’s product and service offerings,
strategy, business segments, financial statements, significant financial, accounting and risk management issues, and
compliance programs.
Director Continuing Education
In 2023, an external legal expert on governance matters presented to our directors. Directors also attended virtual reviews of the
company's HVAC segment channel and markets, and received periodic updates on corporate governance developments.
Directors are encouraged to attend outside continuing education programs and are reimbursed by the company for the cost of such
programs and related expenses. Additional presentations and materials, including updates on recent governance developments, are
provided to directors as appropriate.
2024 Proxy Statement 27
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Summary Company Directors Ownership Compensation Matters
Auditor Proposal
Information
Compensation of Directors
Pay Structure
Annual Retainer
Under the terms of the Carrier Board of Directors Deferred
Stock Unit Plan (“Carrier Director DSU Plan”), annual base Non-Employee Director Annual Retainer
retainers for non-employee directors are payable 40% in
cash and 60% in Deferred Stock Units ("DSUs"). A director
may elect to receive the cash retainer in DSUs.
ROLE CASH($) DEFERRED STOCK UNITS($) TOTAL($)
All Non-Employee Directors (base retainer) 124,000 186,000 310,000
Additional Compensation for Services as1
Lead Independent Director 14,000 21,000 35,000
Audit Committee Chair 10,000 15,000 25,000
Audit Committee Member 6,000 9,000 15,000
Compensation Committee Chair 8,000 12,000 20,000
Governance Committee Chair 8,000 12,000 20,000
Technology & Innovation Committee Chair 8,000 12,000 20,000
1
Directors serving in multiple leadership roles receive incremental compensation for each role.
In October 2023, the Board (upon the Governance Committee's recommendation) determined to keep non-employee director
compensation amounts for the April 2024 to April 2025 Board cycle the same as for the prior Board cycle. This marks the fifth
consecutive Board cycle in which the Board compensation has remained the same (apart from a one-time reduction to the DSU
amount during the COVID-19 pandemic and the addition of compensation for the chair of the newly created Technology & Innovation
Committee in 2022).
Non-employee directors do not receive additional compensation for attending regularly scheduled Board or committee meetings,
but they do receive an additional $5,000 cash payment for each special meeting attended in person. There were no such special
meetings in fiscal year 2023.
Annual retainers are paid each year following the Annual Meeting. New non-employee directors joining the Board between the Annual
Meeting and the end of September receive 100% of the annual retainer. Directors joining the Board between October and the next
Annual Meeting receive 50% of the annual retainer. DSUs are 100% vested at the time of grant, but settlement does not occur until
after a non-employee director leaves the Board. At that time, DSUs are converted into shares of Carrier common stock, distributed
either in a lump sum or in 10- or 15-year installments in accordance with the non-employee director’s prior elections.
Under the terms of the Carrier 2020 LTI Plan, the maximum annual compensation (cash and equity awards) that may be paid by the
company to any non-employee director is $1.5 million.
Our non-employee directors are subject to the stock ownership requirements discussed under "Share Ownership Requirements"
which begins on page 30.
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Treatment of Dividends
When Carrier pays a dividend on its common stock, each non-employee director is credited with additional DSUs equal in value to
the dividend paid on the corresponding number of shares of Carrier common stock.
2023 Director Compensation
The following table sets forth information regarding the 2023 compensation paid to our directors.
FEES
EARNED OR STOCK ALL OTHER
NAME PAID IN CASH($) AWARDS($)1 COMPENSATION($)2 TOTAL($)
Jean-Pierre Garnier — 310,000 833 310,833
John J. Greisch — 345,000 2,736 347,736
Charles M. Holley, Jr. 134,000 201,000 4,796 339,796
Michael M. McNamara — 330,000 833 330,833
Susan N. Story — 325,000 4,138 329,138
Michael A. Todman 138,000 207,000 3,299 348,299
Max Viessmann3 — — — —
Virginia M. Wilson 140,668 211,000 25,000 376,668
Beth A. Wozniak 124,000 186,000 880 310,880
1
Stock Awards consist of the grant date fair value of the DSU awards credited to the non-employee director’s account, including any portion of the annual cash retainer
that the non-employee director elected to receive as DSUs. The value of the DSU awards was calculated in accordance with FASB ASC Topic 718 using assumptions
described in Note 14 – Stock-Based Compensation to the accompanying Notes to the Consolidated Financial Statements in Carrier’s 2023 Annual Report on Form10-K.
The number of units credited to each non-employee director in 2023 was calculated by dividing the value of the award by $45.38, the NYSE closing price per share of
Carrier common stock on April 20, 2023, the date of the 2023 Annual Meeting.
2
Amounts in this column include incidental benefits, matching contributions on behalf of Ms. Wilson ($25,000) to an eligible nonprofit organization under the company’s
matching gift program, which covers non-employee directors as well as company employees, and for Mr. Holley, Ms. Story and Mr. Todman spousal travel on the
corporate jet to and from the December meeting of the Board.
3
As disclosed under "Annual Retainer" on page 28, the Carrier Director DSU Plan provides that new non-employee directors joining the Board between October and the
next Annual Meeting receive 50% of the annual retainer. Mr. Viessmann was appointed to Carrier’s Board effective January 2, 2024, therefore there is no reported
compensation for 2023.
2024 Proxy Statement 29
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Election of Share Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
SHARE OWNERSHIP
Share Ownership Requirements
To encourage the alignment among the Board, management and shareowners, effective January 1, 2024, the Compensation
Committee on behalf of the Board expanded the existing share ownership requirements. Prior to the change, the share ownership
requirements extended to Carrier's non-employee directors, the Chairman & CEO, and only certain ELT members. Beginning
January 1, 2024, the share ownership requirements now extend to all ELT members and Carrier's Controller. The share ownership
requirements vary by position and range from 1X to 6X base salary, or the annual cash retainer for non-employee directors. The
share ownership requirements may be satisfied by ownership of company common stock, Deferred Stock Units (“DSU”) and
Restricted Stock Units (“RSUs”), but excluding stock options, Stock Appreciation Rights (“SARs”) and unvested Performance Share
Units (“PSUs”). Individuals who do not meet the foregoing share ownership requirements within the applicable five-year period will not
be permitted to sell shares of company common stock until satisfying these requirements. Each of the Directors and NEOs currently
exceed their respective ownership requirements as outlined below or are on track to meet them within the five-year period.
Non-Employee Director and NEO Share Ownership Requirements
6x 5x 4x 3x
Chief Financial Officer ("CFO");
President, Fire & Security;
Chairman & CEO Non-employee directors Chief Legal Officer ("CLO")
President, Refrigeration;
Former President, HVAC
Beneficial Share Ownership of Directors and Executive Officers
The following table provides information known to the company as of February 15, 2024, regarding the beneficial ownership of our
common stock by: (i) each director and nominee; (ii) NEOs identified in "Compensation Discussion and Analysis" that begins on
page 33; and (iii) the directors and executive officers as a group. None of the directors, the NEOs or the directors and executive
officers together as a group owned more than 1% of our common stock as of that date. Unless otherwise noted, each person named
in the table below has sole voting and investment power for the referenced shares.
DSUs
SARs CONVERTIBLE TOTAL SHARES
EXERCISABLE TO SHARES BENEFICIALLY
DIRECTORS AND EXECUTIVE OFFICERS WITHIN 60 DAYS1 WITHIN 60 DAYS2 OWNED3
Jean-Pierre Garnier 126,279 144,389
David Gitlin 1,289,711 1,991,290
John J. Greisch 42,873 78,290
Charles M. Holley, Jr. 28,574 28,603
Michael M. McNamara 31,377 31,377
Susan N. Story 10,897 10,897
Michael A. Todman 25,183 25,183
Max Viessmann4 1,647 58,610,606
Virginia M. Wilson 24,973 24,973
Beth A. Wozniak 12,980 12,980
Patrick Goris 104,443 178,602
Kevin O'Connor 322,740 388,823
Jurgen Timperman 148,750 187,608
Timothy N. White 13,317
Directors & Executive Officers as a group (17 in total)5 62,598,714
1
The SARs in the table reflect the net number of shares of Carrier common stock that would be issued to the executive officers if their vested SARs were exercised within
60 days of February 15, 2024. Once vested, each SAR can be exercised for the number of shares of Carrier common stock having a value equal to the increase in
value of a share of Carrier common stock from the date the SAR was granted through the exercise date. The net number of shares of Carrier common stock was
calculated using $56.05 per share, which was the closing price on February 15, 2024.
2
The non-employee director DSUs are converted into Carrier common stock upon termination of service. The table reflects the number of shares that the director has the
right to acquire at any time within 60 days of February 15, 2024, following the director’s separation from the Board. Dr. Garnier acquired a portion of the DSUs reflected
in the table in connection with the Separation and his prior service on the UTC Board of Directors.
3
This includes shares for which voting and investment power is jointly held by the director or NEO: Messrs. Gitlin (278,711 shares) and Timperman (38,858 shares).
4
For Mr. Viessmann, total shares beneficially owned includes 58,608,959 shares of Carrier common stock received as part of the purchase price in the acquisition of the
VCS Business and previously reported on Form 4 filed on January 2, 2024.
5
This reflects as of February 15, 2024, the holdings of the directors and executive officers listed in the company’s 2023 Annual Report on Form 10-K.
30 Carrier Global Corporation
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Election of Share Ownership Compensation Matters
Independent Shareowner FAQs
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Appendix
Directors Auditor Proposal
Principal Shareowners
The following table shows all shareowners known to Carrier to beneficially own more than 5% of the outstanding shares of Carrier
common stock.
NAME AND ADDRESS SHARES PERCENT OF CLASS
BlackRock, Inc.1 60,728,408 7.20%
Capital International Investors2 83,664,060 10.00%
Capital Research Global Investors3 92,829,907 11.10%
Capital World Investors4 65,216,592 7.80%
The Vanguard Group5 93,816,461 11.18%
Viessmann Group GmbH & Co. KG6 58,608,959 6.53%
1
A report on Schedule 13G/A, filed January 26, 2024, disclosed that BlackRock, Inc., was the beneficial owner of 60,728,408 shares of common stock as of December
31, 2023. BlackRock, Inc., reported that it held sole voting power with respect to 54,871,786 shares, shared voting power with respect to zero shares, sole dispositive
power with respect to 60,728,408 shares and shared dispositive power with respect to zero shares. The address of BlackRock, Inc., is 50 Hudson Yards, New York, NY
10001. All information regarding BlackRock, Inc., is based on that entity’s report on Schedule 13G/A, filed with the SEC on January 26, 2024.
2
A report on Schedule 13G/A, filed February 9, 2024, disclosed that Capital International Investors was the beneficial owner of 83,664,060 shares of common stock as of
December 29, 2023, which beneficial ownership was disclaimed pursuant to Rule 13d-4 under the Exchange Act. Capital International Investors reported that it held
sole voting power with respect to 83,336,867 shares, shared voting power with respect to zero shares, sole dispositive power with respect to 83,664,060 shares and
shared dispositive power with respect to zero shares. The address of Capital International Investors is 333 South Hope Street, 55th Floor, Los Angeles, CA 90071. All
information regarding Capital International Investors is based on that entity's report on Schedule 13G/A filed with the SEC on February 9, 2024.
3
A report on Schedule 13G/A, filed February 9, 2024, disclosed that Capital Research Global Investors was the beneficial owner of 92,829,907 shares of common stock
as of December 29, 2023, which beneficial ownership was disclaimed pursuant to Rule 13d-4 under the Exchange Act. Capital Research Global Investors reported that
it held sole voting power with respect to 92,803,442 shares, shared voting power with respect to zero shares, sole dispositive power with respect to 92,829,907 shares
and shared dispositive power with respect to zero shares. The address of Capital Research Global Investors is 333 South Hope Street, 55th Floor, Los Angeles, CA
90071. All information regarding Capital Research Global Investors is based on that entity's report on Schedule 13G/A filed with the SEC on February 9, 2024.
4
A report on Schedule 13G/A, filed February 9, 2024, disclosed that Capital World Investors was the beneficial owner of 65,216,592 shares of common stock as of
December 29, 2023, which beneficial ownership was disclaimed pursuant to Rule 13d-4 under the Exchange Act. Capital World Investors reported that it held sole
voting power with respect to 64,967,403 shares, shared voting power with respect to zero shares, sole dispositive power with respect to 65,216,592 shares and shared
dispositive power with respect to zero shares. The address of Capital World Investors is 333 South Hope Street, 55th Floor, Los Angeles, CA 90071. All information
regarding Capital World Investors is based on that entity's report on Schedule 13G/A filed with the SEC on February 9, 2024.
5
A report on Schedule 13G/A, filed February 13, 2024, disclosed that The Vanguard Group was the beneficial owner of 93,816,461 shares of common stock as of
December 29, 2023. The Vanguard Group reported that it held sole voting power with respect to zero shares, shared voting power with respect to 1,041,864 shares,
sole dispositive power with respect to 90,285,868 shares and shared dispositive power with respect to 3,530,593 shares. The address of The Vanguard Group is 100
Vanguard Boulevard, Malvern, PA 19355. All information regarding The Vanguard Group is based on that entity’s report on Schedule 13G/A, filed with the SEC on
February 13, 2024.
6
A report on Schedule 13D, filed January 9, 2024, disclosed that Viessmann Group, its sole general partner, Viessmann Komplementär B.V. (“Viessmann GP”), its
managing limited partner, Viessmann Beteiligungs AG (“Viessmann LP”), and Max Viessmann, as a director and the controlling stockholder of each of Viessmann GP
and Viessmann LP, was the beneficial owner of 58,608,959 shares of common stock as of January 2, 2024. Each of Viessmann Group, Viessmann GP, Viessmann LP
and Max Viessmann reported that it held sole voting power with respect to zero shares, shared voting power with respect to 58,608,959 shares, sole dispositive power
with respect to zero shares and shared dispositive power with respect to 58,608,959 shares. The address of each of Viessmann Group, Viessmann GP, Viessmann LP
and Max Viessmann is Im Birkenried 1, 35088 Battenberg, Germany. All information regarding Viessmann Group, Viessmann GP, Viessmann LP and Mr. Viessmann
appearing in this footnote is based on such persons’ report on Schedule 13D, filed with the SEC on January 9, 2024.
2024 Proxy Statement 31
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Auditor Proposal
Information
PROPOSAL 2
Advisory Vote to Approve Named Executive
Officer Compensation
WHAT ARE YOU VOTING ON?
We are asking our shareowners to approve, on an advisory basis, the compensation of Carrier’s NEOs disclosed in the
Compensation Discussion and Analysis (“CD&A”), the compensation tables and in the related notes and narrative in this
Proxy Statement.
BOARD RECOMMENDATION: Vote FOR
Why Should You Vote For This Proposal?
In accordance with the requirements of Section 14A of the Exchange Act and the related rules of the SEC, our shareowners have the
opportunity to cast an annual advisory vote to approve the compensation of our NEOs as disclosed pursuant to the SEC’s
compensation disclosure rules, which include the CD&A, the compensation tables and the narrative disclosures that accompany the
compensation tables. The advisory vote on executive compensation is commonly referred to as the "say-on-pay" vote. While this vote
is advisory and therefore not binding on the Board, the outcome of the vote and discussions with investors in the coming year will
inform the Compensation Committee’s evaluation of Carrier’s compensation practices and the Committee’s future decisions regarding
compensation. We also expect that investor feedback regarding the clarity and transparency of compensation disclosures, if any, will
be reflected in future proxy statements to the extent appropriate. We currently hold annual say-on-pay votes, and the next say-on-pay
vote will occur at the 2025 Annual Meeting of Shareowners.
The Board and the Compensation Committee believe that Carrier’s executive compensation program has effectively aligned pay
with performance, while facilitating the retention of highly talented executives who are critical to our long-term success. Accordingly,
the Board recommends that shareowners vote FOR the following resolution:
“RESOLVED, that the compensation of Carrier’s NEOs, as disclosed pursuant to the compensation disclosure rules of the Securities
and Exchange Commission, including the Compensation Discussion and Analysis, compensation tables and related information
provided in this Proxy Statement, is hereby APPROVED on an advisory basis.”
Our Board of Directors recommends a vote FOR this proposal.
32 Carrier Global Corporation
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Compensation Discussion and Analysis
This Compensation Discussion and Analysis ("CD&A") provides important information about Carrier’s executive compensation
philosophy and programs for fiscal year 2023. In addition, this CD&A describes compensation decisions made by the Compensation
Committee of the Board (sometimes referred to within this CD&A as the “Committee”), which is responsible for overseeing the
compensation programs for all executives for 2023, including Carrier’s NEOs:
NAMED EXECUTIVE OFFICERS (NEOs) TITLE
David Gitlin Chairman & Chief Executive Officer
Patrick Goris Senior Vice President & Chief Financial Officer
Jurgen Timperman President, Fire & Security
Timothy White President, Refrigeration
Kevin O'Connor Senior Vice President & Chief Legal Officer
Christopher Nelson1 Former President, HVAC
1
Mr. Nelson's employment ended on May 26, 2023.
Executive Summary
The overall objective of the compensation program is to encourage and reward the creation of sustainable, long-term shareowner
value. The current elements of the executive compensation program directly align the interests of the executives and shareowners,
are competitive, motivate achievement of short- and long-term financial goals and strategic objectives, and align realized pay
with performance.
Philosophy and Guiding Principles
Carrier’s compensation programs are designed with a focus on long-term, sustained winning through customer commitment and
operational excellence. We will drive performance against short- and long-term financial goals while executing the company’s
strategic vision to create exceptional shareowner value.
Carrier’s guiding principles for executive compensation were established as follows:
▪ We create compensation plans that are simple and transparent to employees and shareowners.
▪ We strive to attract and retain the best and most diverse teams that are motivated through compensation programs that are
market competitive.
▪ We pay for performance and ensure that incentive plans have a clear connection between increasing shareowner value and
exceeding customer commitments.
▪ We clearly align compensation programs to business priorities and shareowner interests, underpinned by a culture strongly tied to
the Carrier Code of Ethics and The Carrier Way.
Governance Practices
The Committee believes Carrier’s executive compensation program reinforces its pay-for-performance culture and includes corporate
governance practices that are considered by investors to reflect market best practices.
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What We Do What We Do Not Do
Use an independent executive compensation consultant to Provide excise tax gross-ups on severance/change in
advise the Committee control payments
Annually review and update the composition of our Permit repricing of stock options or other equity-based
Compensation Peer Group, as appropriate awards without shareowner approval
Emphasize long-term, performance-based compensation Pay dividends on SARs or PSUs during performance period
and meaningful share ownership guidelines, applicable to all
Permit non-employee directors, executives or other
ELT members, to align executive and shareowner interests
employees to engage in short sales or enter into hedging,
Align a portion of PSU payouts with stock price performance puts, calls or other "derivative" transactions with respect to
through a relative TSR metric company securities
Design transparent, formulaic incentive plans to promote Permit non-employee directors or executives to engage in
short- and long-term business success pledging, hedging or short sales
Have "double-trigger" provisions for severance payable in Provide excessive perquisites
the event of a change in control
Provide single-trigger benefits under change-in-
Have a stand-alone Clawback Policy applicable to Section control agreements
16 officers in accordance with the New York Stock Exchange
Provide time-based RSUs to NEOs
listing requirements
Have additional "clawback" provisions in both the Annual
and Long-Term Incentive plans to recover cash and equity
incentive payments from executives for misconduct and
other circumstances
Maintain a three-year vesting schedule for annual
equity awards
Perform annual compensation risk assessment to ensure
program does not encourage excessive risk-taking
2023 Say-on-Pay Vote
We engage with and value the feedback of our shareowners on the components of our executive compensation program. We also
regularly engage with our independent compensation consultants, industry groups and proxy advisors to work to ensure that we are
continually reviewing and evolving our compensation programs in line with competitive market standards. We share feedback
received on our compensation programs and market practices with the Committee. The Committee carefully considers the long-term
interests of the company and our shareowners when making decisions regarding our compensation programs. For the third
consecutive year, Carrier’s shareowners expressed strong support for our executive compensation program at our 2023 Annual
Meeting, with a vote of 94.2% in support.
Favorable Say-on-Pay Results
2021 2022 2023
94% 94% 94%
Section I: 2023 Financial Performance Summary
Our business strategy emphasizes driving solid top- and bottom-line growth. This includes establishing stretch, but attainable, goals
for sales, adjusted operating profit, free cash flow and earnings per share to deliver sustainable shareowner value creation. Carrier’s
executive compensation program is designed to motivate NEOs to execute this strategy.
2023 was a significant year for Carrier as we continued to deliver strong financial results while beginning a compelling portfolio
transformation which further positions the company as the global leader in intelligent climate and energy solutions. We are pleased to
report that the company performed well against key financial, operational and strategic performance targets in 2023, many of which
are incorporated into our performance-based compensation plans.
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Financial Highlights
GAAP Adjusted*
Net sales
(dollars in billions)
Operating profit
(dollars in billions)
Operating margin
(percent)
Earnings per share
(dollars per share)
Net cash flows from
operating activities/
Free cash flow
(dollars in billions)
* See Appendix A beginning on page 76 for information regarding non-GAAP measures and a reconciliation of each non-GAAP measure
to the most comparable GAAP measure.
▪ Carrier delivered strong 2023 operating performance as it started executing ▪ Operating profit was lower compared to 2022 due to the previous year’s
its portfolio transformation. In April 2023, the company announced its gains. Strong price/cost management and productivity drove the increase in
acquisition of Viessmann Climate Solutions, which was completed on adjusted operating profits in 2023.
January 2, 2024.
▪ Operating margin decreased 53% compared with last year primarily due to
▪ The company also announced plans to exit its Fire & Security segment and the portfolio transformation-related activities in 2023, while adjusted
commercial refrigeration business. operating margin expanded 30 basis points despite a ~50-basis-point
headwind from consolidating TCC, reflecting strong price/cost and
▪ 2023 net sales increased 8% year-over-year, with organic sales growth of
productivity performance.
3% primarily due to strong price realization. Carrier gained share in all
major segments and grew aftermarket by double digits for a third ▪ GAAP EPS and adjusted EPS benefited from strong operating performance
consecutive year. along with lower net interest expense and a lower share count. GAAP EPS
decreased as a result of portfolio transformation-related activities.
▪ 2023 GAAP operating profit, operating margin and earnings per share
("EPS") comparisons to 2022 were impacted by portfolio transformation- ▪ Cash from operating activities increased 50% versus the prior year driven
related activities in both periods, including large gains in 2022 associated by strong working capital performance. This also led to a free cash flow
with the increase in our ownership interest in Toshiba Carrier Corporation increase of 50% compared to 2022.
(TCC) and the sale of Chubb.
▪ Adjusting for these and other non-operational items, Carrier had another
year of strong financial performance resulting in double-digit adjusted
operating profit growth and adjusted operating margin expansion.
Cumulative Total Shareholder Return (TSR) (dollars per share)
▪ TSR is a financial metric used in our LTI Plan.
▪ The graph compares the cumulative TSR of our common
stock against the cumulative total return of the S&P 500
Index and the Dow Jones Industrials Index for the period
from April 3, 2020, to December 31, 2023, assuming in
each case a fixed investment of $100 at the respective
closing prices of April 3, 2020, the date of Carrier's
Separation, including reinvestments of dividends.
▪ Our cumulative performance outpaced the S&P 500 Index
and the Dow Jones Industrials Index over the same period.
2024 Proxy Statement 35
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Executive Compensation Program Overview
Carrier’s compensation programs are designed to reward strong financial performance that is aligned with long-term, sustainable
shareowner value. The largest portion of compensation for the CEO and NEOs is at-risk compensation. As described in the table
below, both our annual bonus and LTI awards are contingent on company performance relative to key financial metrics and multiyear
cliff vesting requirements.
In accordance with the principle of aligning pay with performance, the Carrier Board, at the Committee’s recommendation, approved
an annualized total target direct compensation package for the CEO for 2023, of which 91% was at risk. In addition, in 2023, 80% (on
average) of total target direct compensation for other NEOs was at risk. Under the Annual Bonus and LTI plans, compensation is
considered to be at risk because it is performance-based (payouts depend on achievement relative to pre-established performance
goals), or may not have value in the case of a decrease in the company share price (even if vesting requirements are met), and is
subject to restrictive covenants and clawback provisions.
The following table summarizes the principal components of the 2023 executive compensation program. These elements are
intended to promote and reward financial performance through a variety of performance metrics and time horizons.
2023 Executive Compensation Program Principal Components
2023 TOTAL TARGET DIRECT
COMPENSATION MIX 1
FORM OF
ELEMENT AWARD PROGRAM COMPONENTS PERIOD CEO OTHER NEOs
BASE Fixed compensation component
Cash One year
SALARY payable in cash
Variable compensation component
payable in cash based on
ANNUAL performance against annually
Cash One year
BONUS established goals and assessment of
individual and business
segment performance
Stock
Drive long-term stock price
Appreciation
appreciation; align the interests of
Rights Three years At-Risk Performance-
executives with shareowners; serve
(SARs) Pay Based Pay
to retain executive talent
50%
LONG-TERM
INCENTIVES Incentivize focus on long-term
(LTI) shareowner value creation through
Performance
profitable growth and increase in
Share Units
share price over time; promote Three years
(PSUs)
retention through long-term
50%
performance achievement and
vesting requirements
CEO 2023 Other NEOs 2023
1
For the calculations above, total target direct compensation for 2023 includes annual base salary, the target value of annual bonus compensation and the target value of
annual LTI awards, but does not include the target value of other special, one-time grants (e.g., sign-on or retention equity awards).
36 Carrier Global Corporation
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Section II: Executive Governance Practices
Roles and Responsibilities
Carrier uses a collaborative process to make compensation decisions for executives. The table below summarizes the roles and
responsibilities of the key participants that are involved in this process:
KEY PARTICIPANTS PRIMARY ROLES AND RESPONSIBILITIES RELATING TO EXECUTIVE COMPENSATION DECISIONS
▪ Sets financial, strategic and operational goals and objectives for the company, the business segments and the
CEO as they relate to the annual and long-term incentive plans
▪ Assesses company, business segment and NEO performance relative to the pre-established goals and
objectives set for the year
▪ Recommends CEO pay adjustments to the Board based on its assessment of CEO performance and
Compensation market data
Committee ▪ Reviews the CEO’s recommendations for pay changes for Executive Leadership Team ("ELT") members and
(Composed of four executive officers and makes adjustments, as appropriate
independent, non- ▪ Evaluates the competitiveness of the compensation packages for the CEO, NEOs, and non-NEO ELT members
employee directors who and executive officers
report to the Board)
▪ Approves all executive compensation program design changes, including incentive plans, severance, change in
control, share ownership requirements, perquisites and supplemental benefit arrangements
▪ Reviews risk assessments of Carrier’s compensation plans, policies and practices
▪ Considers shareowner inputs regarding executive compensation decisions and policies
All decisions are subject to review by the other independent directors
Independent ▪ Provides advice and guidance to the Committee concerning compensation levels and our
Compensation compensation programs
Consultant* ▪ Reports directly to the Committee
(Pearl Meyer)
▪ Considers the performance of each NEO and non-NEO ELT member and executive officer, their business
segment and/or function, market benchmarks, internal equity and retention risk when determining pay
recommendations
▪ Presents the Committee with recommendations for each principal element of compensation for ELT members
CEO and Management and executive officers
▪ Does not have any role in the Committee’s determination of CEO compensation
▪ In consultation with the Committee's independent compensation consultant, provides insight on program design
and compensation market data to assist the Committee with its decisions
* During 2023, the Committee was assisted by Pearl Meyer, who reported directly to the Committee, attended all Compensation Committee meetings and communicated
with the Committee Chair between meetings, as necessary. The Committee has reviewed Pearl Meyer’s qualifications, independence and any potential conflicts of
interest. Pearl Meyer did not perform other services for or receive other fees from Carrier. The Committee therefore determined that Pearl Meyer qualified as an
independent consultant. The Committee has the sole authority to modify or approve Pearl Meyer’s compensation, determine the nature and scope of its services,
evaluate its performance, terminate the engagement and hire a replacement or additional consultant at any time.
Compensation Setting Cycle
The Board and Committee generally follow an annual compensation cycle with respect to each new fiscal year as described below.
The independent directors of the Board make all final compensation decisions for the CEO, based on the recommendation of
the Committee. The Committee also reviews and approves compensation for NEOs, non-NEO ELT members and other executive
officers. Additionally, the Committee approves incentive plan designs, which include establishing performance measures, weightings
and targets for annual bonus and LTI, setting target compensation values, granting equity awards and determining payouts, as well
as determining the types and levels of benefits.
APPROVE REVIEW AND ENGAGE EVALUATE
JANUARY – MARCH APRIL – SEPTEMBER OCTOBER – DECEMBER
▪ Review CEO Performance ▪ Evaluate Compensation Peer Group ▪ Determine compensation program
design changes for upcoming year
▪ Approve annual base pay, annual bonus ▪ Consider compensation
payouts (with respect to the prior year), and program changes ▪ Establish performance measures, targets
LTI grants and performance results for PSUs ▪ Review trends and developments and individual performance objectives
▪ Set target compensation for CEO, ELT and related to compensation design
executive officers and governance
▪ Conduct competitive market compensation
review for NEOs and non-NEO ELT members
2024 Proxy Statement 37
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Peer Benchmarking and Compensation Peer Group
To maintain a competitive executive compensation program, the Committee believes the target value of each principal element of
compensation (i.e., base salary, target annual bonus and target LTI award value) should approximate the market median of the
companies that Carrier views as competitors for executive talent. The Committee annually evaluates each compensation element
relative to the market for each ELT member’s role and adjusts, as necessary. However, individual compensation may vary from
market median benchmarks based on the Committee’s assessment of other factors that it determines to be relevant, including
business segment/function and individual performance, job scope, retention risk, internal pay equity, versatility of skills and
experience in a role.
To establish the competitive market rate for each of the principal components of ELT compensation, the Committee selects a group of
publicly traded companies referred to as the "Compensation Peer Group." The Committee annually reviews the Compensation Peer
Group to maintain relevancy and to ensure the availability of data, while seeking to avoid significant changes in the Compensation
Peer Group to ensure a level of year-over-year comparison.
2023 Compensation Peer Group Data1
CARRIER PERCENTILE RANKING 2023
Compensation Peer Group
3M Co. Johnson
Revenue Controls
$22,098 8 of 16 Caterpillar Inc. International plc
($M)
Cummins Inc. Otis Worldwide
Deere & Corporation
Company Parker Hannifin
Eaton Corporation
Corporation plc Stanley Black &
Decker, Inc.
Emerson
Electric Co. TE Connectivity
Market Ltd.
Honeywell
Capitalization $48,203 10 of 16 International Trane
($M) Inc. Technologies plc
Illinois Tool Whirlpool
Works Inc. Corporation
1
Revenues are stated in millions for the latest four quarters ended on or prior to December 31, 2023. Market capitalizations are stated in millions as of
December 31, 2023.
Section III: 2023 CEO and NEO Compensation
The compensation program for the CEO and NEOs, and other executives, primarily consists of the following elements:
▪ Base salary
▪ Annual performance-based cash bonus
▪ LTI compensation: for 2023, was composed of 50% SARs and 50% PSUs (using the company's methodology described below)
2023 Base Salary
To attract and retain talented and qualified executives, we provide competitive base salaries, which we target at the market median.
The Committee reviews the CEO’s recommendations for base salary adjustments for the ELT and other executive officers relative to
market data for similar roles. The Committee has discretion to modify or approve the CEO’s recommendations, and the CEO has no
involvement in the Board’s determination of his own compensation. Actual salaries may vary from market median based on factors
such as job scope and responsibilities, experience in role, breadth of skills, tenure, individual performance, retention risk and internal
pay equity. In 2023, the Committee recommended and the Board approved an increase in Mr. Gitlin's base salary to $1.4 million
based on individual performance, market analysis of similar positions within our Compensation Peer Group and input from its
independent compensation consultant to ensure appropriate external alignment.
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The table below shows both the 2022 and 2023 annual base salary for each NEO. Base salary adjustments became effective on
April 1, 2023.
ANNUAL BASE SALARY ANNUAL BASE SALARY PERCENT
NEO AS OF 12/31/2022 ($) AS OF 12/31/2023 ($) INCREASE
David Gitlin 1,350,000 1,400,000 3.7%
Patrick Goris 760,000 800,000 5.3%
Jurgen Timperman 620,000 650,000 4.8%
Timothy White 620,000 644,800 4.0%
Kevin O'Connor 681,000 708,000 4.0%
Christopher Nelson1 715,000 — —
1
Mr. Nelson's employment ended on May 26, 2023.
2023 Annual Bonus
We provide our NEOs the opportunity to earn annual cash incentive compensation under our Annual Bonus Plan. The Committee
believes its methodology for determining annual bonus awards accomplishes the following objectives:
▪ Establishes challenging but achievable performance goals that are consistent with the Committee’s assessment of opportunities
and risks for the upcoming year, as communicated to investors
▪ Sets annual bonus targets for NEOs that are market competitive
▪ Allows the Committee to assess both overall company performance and individual performance
Annual Bonus Targets
The Committee approves annual bonus targets based on relevant market data for each NEO’s role, including market median levels in
the context of total target compensation and the scope of the NEO's role. Annual bonus targets are expressed as a percentage of
base salary and generally approximate the Compensation Peer Group median.
The 2023 annual bonus targets for each NEO are shown below. Mr. Gitlin's annual bonus target was increased from 160% to 175%
to align his target with that of his peers in the Compensation Peer Group.
2023 ANNUAL BONUS
TARGET VALUE 2023 ANNUAL BONUS
NEO (AS % OF BASE SALARY) TARGET VALUE ($)
David Gitlin 175% 2,450,000
Patrick Goris 100% 800,000
Jurgen Timperman 90% 585,000
Timothy White 90% 580,320
Kevin O'Connor 80% 566,400
Christopher Nelson1 — —
1
Mr. Nelson's employment ended on May 26, 2023, and he was ineligible for a 2023 Annual Bonus payout.
2024 Proxy Statement 39
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Annual Bonus Performance Metrics and Relative Weighting
Our 2023 Annual Bonus Plan was designed to reward NEOs for delivering top- and bottom-line growth and improving free cash flow
("FCF"), the results of which are used to establish a company performance factor as calculated in the 2023 Annual Bonus Final
Company Performance Factor Table (the "Company Performance Factor"), which establishes the overall annual bonus pool.
WHY DID THE COMMITTEE SELECT THESE
FINANCIAL METRIC1 DEFINITION WEIGHT METRICS?
The Committee believes sales performance
aligns with the company’s focus on organic
Sales (a GAAP measure) adjusted for the
growth which can be increased by improving
Sales impact of foreign exchange, acquisitions 1/3
market share, introducing new products
and/or divestitures.
and services, entering new markets, and
pricing effectively.
Operating profit (a GAAP measure),
excluding restructuring costs, amortization of
The Committee believes that adjusted operating
acquired intangibles, and other significant
profit is an appropriate operating earnings goal
Adjusted Operating Profit items of a non-recurring and/or 1/3
because it measures the effectiveness and
nonoperational nature and further adjusted
efficiency of our core operations.
for the impact of acquisitions, divestitures,
foreign exchange and other items.
Net cash flows provided by operating
activities (a GAAP measure) less capital The Committee believes that FCF performance is
expenditures and further adjusted for the a relevant measure of the ability to generate cash
Free Cash Flow (FCF) 1/3
impact of foreign exchange, acquisitions to fund operations and key strategic and
and/or divestitures and related business investments.
transaction costs.
1
Performance goals and results are based on non-GAAP financial measures and additional adjustments as approved by the Committee. See Appendix A beginning on
page 76 for more details.
For the 2023 Company Performance Factor, Messrs. Gitlin, Goris and O'Connor, as corporate NEOs, were measured on corporate
financial metric goals. Messrs. White and Timperman, as business segment NEOs, were measured on an equally weighted
combination of corporate financial metric goals (50%) and their respective business segment financial metric goals (50%).
Corporate NEOs Business Segment NEOs
In addition to the financial metrics, NEOs were assigned 2023 strategic and operational objectives in furtherance of Carrier's priorities
and goals. As a part of the individual performance factor portion of the 2023 Annual Bonus Plan ("Individual Performance Factor"),
each NEO's progress against these goals can result in upward or downward adjustments to the NEO's calculated annual bonus
payout determined by the financial metrics.
NEO Annual Bonus Payout Calculation
Company/Segment
Performance Individual
Annual Bonus Final Annual
Base Salary $ x Target %
x Factor Weight x Performance = Bonus Payout $
(1/3 Sales, 1/3 Adjusted
Factor %
Operating Profit, 1/3 FCF)
The annual bonus award for each executive is calculated by first multiplying each executive’s annual base salary by his annual bonus
target percentage, multiplied by the applicable Company Performance Factor approved by the Committee, which takes into account
business segment performance results if applicable. An Individual Performance Factor is then applied, resulting in a participant's final
annual bonus payout. An individual participant's annual bonus payout cannot exceed 200% of such participant's annual bonus
target value.
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2023 Annual Bonus Final Company Performance Factor
The Annual Bonus Plan financial targets are set in partnership with the Committee and the Board of Directors and represent the
Committee's desire for increases over prior year performance targets and results. These targets are aligned with shareowner value
creation and are intended to be stretch but achievable. The Committee has the authority to reduce the final Company Performance
Factor if it believes measured financial performance does not align with its assessment of overall performance.
Carrier delivered strong 2023 financial results, including increased strong operating performance and increased organic sales as it
executed on its portfolio transformation. For the 2023 Annual Bonus Plan metrics, Carrier performance against established targets
exceeded the annual sales and adjusted operating profit targets, and almost achieved maximum payout for the free cash flow target,
with overall performance against corporate financial targets resulting in a 143.0% Company Performance Factor.
COMPANY
THRESHOLD TARGET MAXIMUM PERFORMANCE
FINANCIAL METRIC1 WEIGHTING 50% PAYOUT 100% PAYOUT 200% PAYOUT ACHIEVEMENT FACTOR
Sales 1/3 110.0% 36.7%
Adjusted Operating
1/3 124.0% 41.3%
Profit
Free Cash Flow 1/3 195.0% 65.0%
Final Company Performance Factor: 143.0%
1
Performance goals and results are based on non-GAAP financial measures. See Appendix A beginning on page 76 for more details.
2023 Annual Bonus Individual Performance Factor
NEOs begin the year with individual financial, strategic and operational objectives. Based on the CEO’s assessment of each NEO’s
individual performance against these, and overall individual performance, he may recommend that the Committee makes an
adjustment to increase or decrease the Individual Performance Factor and final annual bonus payout. The Committee considers
these recommendations and makes any adjustments it deems appropriate. Mr. Gitlin has no role in the Committee’s determination of
his own annual bonus.
The Board of Directors assigned an Individual Performance Factor of 100% for Mr. Gitlin. The CEO, based on his assessment of
individual performance, recommended to the Committee individual performance factors of 100% for each of the eligible NEOs
reflective of their individual performance, delivery on strategic objectives and overall contributions toward achieving the company’s
2023 financial goals.
2023 CEO and NEO Annual Bonus Final Payouts
Based on the factors discussed above, the final 2023 annual bonus payouts for the CEO and NEOs are noted below.
TARGET BONUS COMPANY/SEGMENT INDIVIDUAL
PERCENTAGE % OF 2023 ANNUAL BONUS PERFORMANCE PERFORMANCE TOTAL PAYOUT FINAL ANNUAL
NEO BASE SALARY TARGET VALUE ($) FACTOR FACTOR FACTOR BONUS PAYOUT ($)
David Gitlin 175% 2,450,000 143.0% 100.0% 143.0% 3,503,500
Patrick Goris 100% 800,000 143.0% 100.0% 143.0% 1,144,000
Jurgen Timperman 90% 585,000 143.0% 100.0% 143.0% 836,550
Timothy White 90% 580,320 105.0% 100.0% 105.0% 609,340
Kevin O'Connor 80% 566,400 143.0% 100.0% 143.0% 809,960
Christopher Nelson1 — — — — — —
1
Mr. Nelson's employment ended on May 26, 2023, and he was ineligible for a 2023 Annual Bonus payout.
2024 Proxy Statement 41
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2023 Long-Term Incentives
Long-term incentives are intended to align the interests of NEOs with shareowners by linking a meaningful portion of executive
compensation to shareowner value creation over a multiyear period. To ensure that the compensation of our NEOs is closely aligned
with the long-term strategic objectives of the company and the interests of shareowners, the 2023 annual LTI awards for company
executives were composed of only performance-based LTI instruments: SARs and PSUs. As such, we did not grant any time-based
Restricted Stock Units ("RSUs") to NEOs.
METRIC WEIGHTING RATIONALE FEATURES
▪ Three-year cliff vesting
▪ 10-year life
SARs Not applicable 50% Stock price appreciation
▪ Exercise price equal to the closing price of our common
stock on the date of grant
Adjusted Earnings ▪ Three-year cliff vesting
Per Share (“EPS”) Stock price appreciation
motivates achievement ▪ Subject to performance measured over a three-year period
PSUs Compound Annual 25%
of long-term business
Growth Rate strategy ▪ Final earned awards contingent on achievement of
(“CAGR”) three-year EPS CAGR targets
Total Shareholder ▪ Three-year cliff vesting
Stock price appreciation
Return (“TSR”)
motivates achievement ▪ Subject to performance measured over a three-year period
PSUs relative to a subset 25%
of long-term business
of the S&P 500 ▪ Final earned awards contingent on Carrier’s TSR relative to
strategy
Industrials Index a subset of the S&P 500 Industrials Index
Stock Appreciation Rights ("SARs")
SARs are a regular component of our LTI program. SARs directly align the long-term interests of our executives with those of
shareowners by tying their value to sustained long-term company performance. The three-year vesting schedules and the extended
terms of the SARs tied to continued employment serve to retain executive talent. SARs provide value to executives only if the price of
our common stock increases after the SARs are granted. SARs are granted with an exercise price equal to the closing price of our
common stock on the date of grant, generally vest 100% on the third anniversary of the date of grant and expire 10 years from the
date of grant, unless terminated earlier following termination of employment.
The number of SARs granted is determined by dividing the targeted U.S. dollar value of SARs by the fair value of one SAR using a
binomial lattice option pricing model.
Performance Share Units ("PSUs")
The Committee believes PSUs are an integral component of our executive compensation program, and no less than 50% percent of
an executive’s target LTI award value should be delivered through PSUs. PSUs support the achievement of long-term financial and
business goals and promote retention through long-term performance achievement and vesting requirements. The number of PSUs
granted is determined by dividing the target dollar grant value of PSUs by the 20-day average closing price of our common stock prior
to the date of grant.
The PSUs paid at the end of the three-year performance period can range from 0% to 200% of the target number of shares, based
upon the achievement of pre-established performance goals. For grants made in 2023, the two performance goals were EPS CAGR
and Relative TSR, each weighted 50%.The Relative TSR metric compares our share price performance with a relative performance
benchmark group index that includes a subset of companies in the S&P 500 Industrials Index ("Performance Peer Group"). The
Performance Peer Group includes companies in the industries most closely linked to Carrier, including those in the following
industries: Building Products, Construction Machinery & Heavy Trucks, Electrical Components & Equipment, Industrial
Conglomerates, and Industrial Machinery. We believe that tracking Carrier's performance against the Performance Peer Group
closely ties realized compensation of our NEOs to Carrier's performance by comparing to the performance of comparable companies
in the market. The Performance Peer Group for PSU awards granted in 2023 included the 29 companies listed below.
2023 PERFORMANCE PEER GROUP1
3M Co. Emerson Electric Co. Johnson Controls International plc Snap-On Incorporated
A. O. Smith Corporation Fortive Corporation Masco Corporation Stanley Black & Decker, Inc.
Allegion plc Generac Holdings Inc. Nordson Corporation Trane Technologies plc
Ametek, Inc. General Electric Co. Otis Worldwide Corporation Wabtec Corporation
Caterpillar Inc. Honeywell International Inc. PACCAR Inc. Xylem Inc.
Cummins Inc. IDEX Corporation Parker Hannifin Corporation
Dover Corporation Illinois Tool Works Inc. Pentair plc.
Eaton Corporation plc Ingersoll-Rand Inc. Rockwell Automation, Inc
1
For 2024, the Committee has approved a revised list of 31 companies to reflect changes to the S&P 500 Industrials sub-industry designations.
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The payout formula, as summarized below, aligns closely to our Compensation Peer Group's prevalent practices to ensure we can
attract and retain talent. The number of shares earned will be interpolated for results between those percentiles. If performance
shares are earned but our absolute TSR is negative, the number of shares earned for the portion tied to Relative TSR will be capped
at target.
THRESHOLD TARGET MAXIMUM
Carrier Global Corporation TSR
Performance Relative to a Subset 25th Percentile 50th Percentile 75th Percentile
of the S&P 500 Industrials Index
Percent of Target Shares Earned 25% 100% 200%
For EPS CAGR, the Committee works closely with management to review and establish rigorous performance metrics that are
consistent with the company's long-term strategic objectives communicated to investors, and sets a three-year growth rate target that
will challenge our executives to drive results that generate shareowner returns. At the end of the three-year performance period, our
NEOs' earned awards are determined based on the level of achievement against this target.
2020 Founder’s Grant PSU Results
On May 13, 2020, in connection with the Separation from UTC, the CEO and a select group of other executives received a one-time
equity grant (the "Founder's Grant"). The Founder's Grant was issued as a combination of SARs and PSUs which vested on May 13,
2023, three years from the date of the grant. The PSU portion of the Founder's Grant vested based on Carrier’s three-year Total
Shareholder Return (TSR) relative to a subset of industrial companies in the S&P 500 index measured from May 2020 to May 2023.
Payout was satisfied at the maximum 200% since the rTSR percentile was above the 85th percentile. Among our NEOs,
Messrs. Gitlin, O'Connor, Timperman and Nelson received the Founder's Grant.
FINANCIAL 0% THRESHOLD TARGET MAXIMUM PERFORMANCE
METRIC WEIGHTING Payout 25% PAYOUT 100% PAYOUT 200% PAYOUT ACHIEVEMENT FACTOR
Relative TSR
100% <35th 200.0% 200.0%
Percentile
The Performance Peer Group for the Founder's Grants was the same as the 2021 Performance Peer Group below, with the addition
of Westinghouse Air Brake Technologies.
2021 PSUs Results
On February 4, 2021, the CEO and other executives received an annual equity grant in the form of 50% SARs and 50% PSUs
("2021 PSUs"). The 2021 PSUs vested on February 4, 2024, based on the results over the three-year period that ended on
December 31, 2023, weighted equally, of the two established performance metrics – EPS CAGR and TSR relative to a subset of
companies in the S&P 500 Industrials Index shown below. The final achieved performance factor was 185.5%.
FINANCIAL 0% THRESHOLD TARGET MAXIMUM PERFORMANCE
METRIC1 WEIGHTING Payout 25% PAYOUT 100% PAYOUT 200% PAYOUT ACHIEVEMENT FACTOR
<6%
EPS CAGR1 50% ($1.71 200.00% 100.0%
or less)
Relative TSR
50% <25th 170.97% 85.5%
Percentile
Final Performance Factor: 185.5%
1
The original EPS starting point at year-end 2020 was $1.66, which included Chubb. In January 2022, Chubb was sold, and the EPS targets were adjusted to reflect the
impact of the sale. The adjusted EPS starting point for year-end 2020 was $1.44.
2021 PERFORMANCE PEER GROUP FOR RELATIVE TSR ("rTSR")
3M Co. Emerson Electric Co. Illinois Tool Works Inc. Roper Technologies, Inc.
A. O. Smith Corporation Fastenal Co. Ingersoll-Rand Inc. Snap-On Incorporated
Allegion plc Flowserve Corporation Johnson Controls International plc Stanley Black & Decker, Inc.
Ametek, Inc. Fortive Corporation Masco Corporation Trane Technologies plc
Caterpillar Inc. Fortune Brands Innovations, Inc. PACCAR Inc. Wabtec Corporation
Cummins Inc. General Electric Co. Parker-Hannifin Corporation W. W. Grainger, Inc.
Dover Corporation Honeywell International Inc. Pentair plc. Xylem Inc.
Eaton Corporation plc Johnson Controls International plc W. W. Grainger, Inc.
2024 Proxy Statement 43
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2023 CEO and NEO Annual Long-Term Incentive Target Values
The Committee primarily considered the following factors in determining the grant date target value of annual LTI awards granted to
each NEO in 2023:
▪ Competitive market median levels in the context of total target compensation, which includes base salary, target annual bonus
opportunity and target LTI
▪ The scope of responsibility of the NEO relative to the other executives in the LTI program and relative importance of the NEO to
the company’s long-term success
▪ The LTI award recommendations of Mr. Gitlin for NEOs other than himself
The target values for the SAR and PSU awards differ from the corresponding values reported in the Summary Compensation Table
and the Grants of Plan-Based Awards Table, on pages 49 and 51, respectively, due to different methodologies used in assigning the
economic value of equity-based awards required for accounting and proxy statement reporting purposes. The Committee makes
equity award decisions based on a formula it believes is appropriate to determine grant date expected value, including using a 20-day
preceding grant date pricing average rather than a single day's stock price, while the accounting and proxy statement values are
determined in accordance with GAAP requirements.
TOTAL TARGET VALUE
NEO TARGET VALUE OF SARs ($) TARGET VALUE OF PSUs ($) 2023 ANNUAL LTI ($)
David Gitlin 5,575,000 5,575,000 11,150,000
Patrick Goris 1,400,000 1,400,000 2,800,000
Jurgen Timperman 950,000 950,000 1,900,000
Timothy White 800,000 800,000 1,600,000
Kevin O'Connor 850,000 850,000 1,700,000
Christopher Nelson1 1,400,000 1,400,000 2,800,000
1
Mr. Nelson's employment ended on May 26, 2023, and his 2023 grants were forfeited.
Actual awards in 2023 for Messrs. Gitlin and O'Connor were consistent with the target values above. Mr. White received 115.6% of
the target award reflective of his long-term value to the company. Due to considerations relating to our announced portfolio
transformation, Messrs Goris, Timperman and Nelson received enhanced annual awards as described further in the "Other
Compensation Elements" section. All of these awards were approved by the Compensation Committee and are reflected in the
Summary Compensation Table and the Grants of Plan-Based Awards Table.
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Section IV: Other Compensation Elements
Benefits
Carrier NEOs are eligible for company-provided benefit plans, including a qualified 401(k) savings plan, health and welfare benefits,
deferred compensation, and other nonqualified supplemental retirement plans. NEOs generally participate in these plans on the same
basis as other eligible U.S. salaried employees. Our Deferred Compensation Plan offers deferral opportunities for base salary and
annual bonus compensation. Our nonqualified supplemental retirement plans use the same formula as our qualified savings plan to
provide benefits that may not be paid under our qualified savings plan due to annual limitations imposed under the Internal Revenue
Code ("IRC").
Carrier also continues to pay benefits under a nonqualified defined benefit plan (the Pension Preservation Plan, or "PPP") to eligible
employees hired prior to January 1, 2010. Benefits are calculated using a final average earnings or cash balance formula based on
dates of hire, and all future benefit accruals were frozen effective December 31, 2019. Messrs. Gitlin and Nelson are the only NEOs
eligible for benefits under the PPP. More information about their benefits can be found in the Pension Benefits and Nonqualified
Deferred Compensation Table on pages 53 and 54, respectively.
Perquisites
Our NEOs receive a limited perquisite package that includes annual physicals and financial planning. The CEO is allowed personal
use of the corporate aircraft for up to 50 hours per year. Personal use of the corporate aircraft is generally prohibited for other NEOs,
except in rare situations and with preapproval by the CEO.
NEOs are eligible to participate in the same company-funded long-term disability program as other employees, with a basic annual
benefit upon disability that is equal to 60% of base salary and certain buy-up options. Messrs. Gitlin, Nelson and Timperman also are
eligible for a grandfathered disability benefit inherited from UTC upon the Separation in 2020 equal to 80% of base salary plus target
bonus compensation.
Mr. Gitlin has company-funded life insurance coverage up to three times his base salary at age 62 (projected or actual) (the "CEO
Life Insurance Policy"), which was a UTC grandfathered benefit.
Employment Agreements, Severance and Change-in-Control Agreements
Carrier has not entered into employment agreements with any of the NEOs. We may provide at-will offer letters to newly hired
executive officers. We also do not have any agreements that would provide automatic “single-trigger” accelerated vesting of equity
compensation or excise tax gross-up payments to any NEOs in the event of a change in control of the company.
Performance Incentive and Retention Bonus Arrangement for Jurgen Timperman
In connection with our previously announced plans to exit the Fire & Security businesses, the Committee in 2023 approved a
performance incentive and retention bonus arrangement for Mr. Timperman. Under this arrangement, Mr. Timperman has the
opportunity to earn a cash bonus award if Fire & Security achieves performance above the financial plan targets for adjusted
operating profit and free cash flow (“Performance Bonus”) in 2023 and 2024. The financial plan targets reflect Carrier’s internal
business plan targets, for which achievement above these targets is challenging, yet achievable. Since Fire & Security achieved the
financial plan targets in 2023, the corresponding portion of the Performance Bonus is reflected in the Summary Compensation Table
for Mr. Timperman, but under the terms of the arrangement, payment will not be made until the earlier of the certification of the 2024
financial plan results or the completion of the divestiture of Fire & Security, with completion date to be as defined by the company.
In addition, Mr. Timperman will be eligible for a cash bonus following completion of the company’s exit of Fire & Security (“Deal
Bonus”), subject to his continued employment. The maximum bonus opportunity over a multiyear period, for both the Performance
Bonus and the Deal Bonus, is $2.5 million, which the Compensation Committee determined is commensurate with the additional
challenges and responsibilities required of Mr. Timperman in connection with the efforts to exceed financial plan targets, while
concurrently leading efforts to divest Fire & Security.
Enhanced Annual Awards for Patrick Goris, Jurgen Timperman and Christopher Nelson
The Compensation Committee approved enhancements to the 2023 annual LTI awards for Mr. Goris (additional $2.2 million),
Mr. Timperman (additional $2.1 million) and Mr. Nelson (additional $2.2 million). These enhanced awards are structured in the same
performance-based mix (SARs and PSUs) as the normal annual LTI awards but are not eligible for retirement vesting, as described
further in the Potential Payments on Termination or Change in Control Table, thus incentivizing long-term retention of those
executives at a critical juncture in Carrier’s portfolio transformation with the acquisition of Viessmann Climate Solutions and the
divestiture of its Fire & Security business. Upon Mr. Nelson's employment ending on May 26, 2023, his enhanced 2023 awards were
forfeited.
2024 Proxy Statement 45
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2024 Supplemental Equity Award for David Gitlin and Patrick Goris
On January 30, 2024, the independent members of the Board approved supplemental equity awards ("Supplemental Equity Awards")
for Mr. Gitlin and Mr. Goris. As Carrier is implementing a significant portfolio transformation, further described on page 7, to drive
profitable growth and create substantial value for shareowners. Carrier is at a pivotal moment in this portfolio transformation with the
acquisition of Viessmann Climate Solutions and the divestiture of its Fire & Security and commercial refrigeration businesses.
The Supplemental Equity Award is designed to incentivize and support Mr. Gitlin and Mr. Goris’ long-term retention, given their critical
role in guiding this transformation and further positioning Carrier as the global leader in intelligent climate and energy solutions
The Supplemental Equity Awards are exclusively performance based with rigorous targets tied to adjusted earnings per share growth
and stock price appreciation with vesting over five years, thereby linking them directly to retention, as well as the company’s
long-term growth and further promoting the alignment of the recipients' compensation with long-term shareowner value creation. Prior
to approving the award, the Compensation Committee and the Board also considered the extremely competitive external market by
direct peers and broader industrial companies for proven senior executive talent such as Mr. Gitlin and Mr. Goris. Mr. Gitlin’s market
attractiveness is further heightened by his leadership through a very successful period for Carrier, resulting in significant shareowner
value creation since its spinoff into an independent company in April 2020. In addition to the required achievement of specific
performance hurdles, the award delivers full value only if Mr. Gitlin and Mr. Goris remain with Carrier through 2029. The Supplemental
Equity Award was approved with the advice and input from the Compensation Committee’s independent compensation consultant,
which included a review of relevant benchmarking data and was in addition to Mr. Gitlin and Mr. Goris’ annual equity grant, which was
approved on the same date.
The Supplemental Equity Award is in the form of (i) PSUs (446,110 for Mr. Gitlin and 44,615 for Mr. Goris), and (ii) SARs (1,725,330
for Mr. Gitlin and 172,535 for Mr. Goris with an exercise price of $56.33 per share), which represents the closing price on the grant
date. The number of PSU shares earned under the Supplemental Equity Awards will be based on the level of performance achieved
against EPS growth performance goals during the three-year performance period of 2024 through 2026 with payout ranging from 0%
to 200% of the target number of shares. Earned PSUs are subject to time-based vesting and will vest in three equal annual
installments in each of 2027, 2028 and 2029, subject to continuous employment through the vesting date. The SARs granted as part
of the Supplemental Equity Award will cliff vest on the five-year anniversary of the grant date, subject to continuous employment
through such date.
These Supplemental Equity Awards deliver full value only if Messrs. Gitlin and Goris remain with Carrier through 2029. Upon a
termination of employment for any reason (other than death or disability) absent a change in control of Carrier, the Supplemental
Equity Award recipients will forfeit their unvested SARs and PSUs. There are no retirement-eligible provisions for the Supplemental
Equity Awards.
Post-Employment Restrictive Covenants
To discourage executives (which includes each of the NEOs) from engaging in activities after termination or retirement that are
detrimental to Carrier, such as disclosing proprietary information, soliciting Carrier employees or engaging in competitive activities,
the LTI Plan includes clawback provisions that would allow Carrier to claw back LTI awards issued during the three-year period
preceding termination or retirement. In addition to these clawback provisions, beginning with LTI awards granted in 2022, as a
condition to award acceptance (and regardless of whether the award recipient receives any benefits in connection with the award),
the Committee requires all LTI award recipients to agree to the following post-employment covenants for the protection of the
company: (i) confidentiality; (ii) non-competition; (iii) employee and customer non-solicitation; and (iv) non-disparagement.
Clawback Provisions
Carrier’s LTI and Annual Bonus plans both provide for the clawback, recoupment and/or recovery of awards under certain
circumstances. Under the Annual Bonus Plan, Carrier can claw back bonuses if a performance goal is recalculated as a result of the
executive’s negligence or misconduct, and the corrected performance goal would have (or likely would have) resulted in a reduced
bonus. Under the LTI Plan, Carrier has the authority to cancel awards, including vested awards, and to recoup any gains realized by
participants from previous LTI awards if a participant is terminated for cause, including as a result of willful misconduct or negligence
that is injurious to the company. Carrier also may claw back LTI awards if the participant violates post-employment non-competition,
non-solicitation or non-disparagement covenants, or if it is discovered within three years that the participant could have been
terminated for cause.
On October 2, 2023, in accordance with the New York Stock Exchange listing requirements, the Board adopted a standalone
Clawback Policy. This policy, filed as an exhibit to Carrier's 2023 Annual Report on Form 10-K, requires the Board to pursue
clawbacks for excess compensation paid to Section 16 officers due to financial restatements resulting from material noncompliance
with reporting requirements. The policy applies to the Annual Bonus Plan and PSU Awards granted under the LTI Plan and includes a
three-year lookback on the award value exceeding amounts that would have been paid under restated financials.
Senior Executive Severance Plan
Carrier maintains a Senior Executive Severance Plan (the “Severance Plan”) to provide certainty in the event a member of the ELT is
involuntary separated, including the NEOs.
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The Severance Plan provides for the payment of severance and other benefits upon an involuntary termination of employment other
than for Cause, Disability (as such terms are defined in the Severance Plan) or death, which are not considered a qualifying
termination under the company’s Change in Control Severance Plan (as described below). Subject to the execution of a release and
covenant agreement, which will contain a release of claims, perpetual covenants of confidentiality and non-disparagement, and
covenants of non-competition and non-solicitation that will extend for a period of two years after termination, the Severance Plan
provides for the following payments and benefits upon a qualifying termination:
▪ A lump-sum payment equal to one-and-a-half times (two times for the CEO) the executive’s annual base salary
▪ In the event an executive’s termination of employment occurs during the last fiscal quarter of the annual bonus performance
period, a prorated bonus for the year of termination, calculated based on target performance for any individual performance goals
and actual performance for the full year with respect to all other performance goals
▪ Continued healthcare benefits for the executive (and eligible dependents) for up to 12 months at no cost to the executive
▪ Outplacement services for up to 12 months
The value of the lump-sum payment referenced above will be offset by the value of any RSU award originally granted to the
executive in connection with the executive’s appointment as a member of the legacy UTC Executive Leadership Group that
vests upon the executive’s termination, as well as by any other severance benefits that the executive is entitled to receive upon
termination of employment.
Change in Control Severance Plan
Carrier also offers a Change in Control Severance Plan under which any NEO who is terminated without cause or resigns for good
reason on, or within the two years of, a change in control (as defined in the plan) would be entitled to receive certain benefits (subject
to the NEO’s execution of a release of claims in favor of Carrier and agreement to a one-year post-termination non-competition
covenant and a two-year post-termination non-solicitation covenant). These benefits include:
▪ A lump-sum cash severance payment equal to three times (for the CEO) or two times (for the other NEOs) the sum of (a) the
officer’s annual base salary and (b) the officer’s target annual bonus
▪ A prorated target annual bonus for the year of termination (reduced by any annual bonus payment to which the NEO is entitled for
the same period of service)
▪ Up to 12 months of healthcare benefit coverage continuation at no premium cost to the NEO
▪ Outplacement services for 12 months
▪ Continued financial planning services for 12 months
The Change in Control Severance Plan provides that in the event that the payments and benefits to an NEO in connection with a
change in control of Carrier, whether pursuant to the Severance Plan or otherwise, would be subject to the golden parachute excise
tax imposed under Sections 280G and 4999 of the IRC, then the NEO will either receive all such payments and benefits and pay the
excise tax, or such payments and benefits will be reduced to the extent necessary so that the excise tax does not apply, whichever
approach results in a higher after-tax amount of the payments and benefits being retained by the NEO.
Section V: Other Compensation Policies and Practices
Share Ownership Requirements
To further encourage the alignment of management and shareowner interests, the Board has adopted the following share ownership
requirements for the CEO, NEOs and non-employee directors.
Non-Employee Director and NEO Share Ownership Requirements
6x 5x 4x 3x
CFO;
President, Fire & Security;
Chairman & CEO Non-employee directors CLO
President, Refrigeration;
Former President, HVAC
Under these requirements, each of our directors and NEOs is required, within five years of attaining that position, to own shares of
Carrier common stock – including DSUs and RSUs but excluding stock options, SARs and unvested PSUs – equal in value to the
applicable multiple of their then base salary (or base annual cash retainer for non-employee directors). The Board has also recently
expanded its share ownership requirements as described in the Share Ownership section beginning on page 30. Non-employee
directors and ELT members who do not meet the foregoing share ownership requirements within the applicable five-year period will
not be permitted to sell shares of Carrier common stock until satisfying these requirements. Each of the non-employee directors and
ELT members currently comply with their respective ownership requirements or are on track to meet them within the five-year period.
2024 Proxy Statement 47
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No Short Sales, Pledging or Hedging of Carrier Securities and No Option Repricing
Carrier does not allow its directors, officers or employees to enter into short sales of Carrier common stock. Similarly, directors,
officers and employees may not pledge or assign an interest in Carrier common stock or other equity interests as collateral for a loan.
Additionally, transactions in put options, call options or other derivative securities that have the effect of hedging the value of Carrier
securities are prohibited, whether or not those securities were granted to or held directly or indirectly, by the director, officer or
employee. Carrier’s LTI Plan prohibits repricing of underwater stock options and SARs without shareowner approval.
Tax Deductibility of Incentive Compensation
For 2023, IRC section 162(m) limited Carrier’s deduction to $1 million for annual compensation paid to covered employees, as
defined in IRC section 162(m).
The Committee believes that the company’s interests are best served by maintaining flexibility in the way compensation is provided,
even if it might result in the non-deductibility of certain compensation under the IRC.
Risk Assessment
In 2023, the Committee and management, with the assistance of Pearl Meyer, conducted a review of Carrier’s compensation
strategies, plans, programs, policies and practices, including executive compensation, major broad-based compensation programs
and sales compensation. The goal of this review was to assess whether any of Carrier’s compensation strategies, plans, programs,
policies or practices, either individually or in the aggregate, would encourage executives or employees to undertake unnecessary or
excess risks that were reasonably likely to have a material adverse impact on Carrier. The review included compensation strategy
and philosophy, annual and LTI design, sales compensation, severance benefits (both absent a change in control of Carrier and
following a change in control of Carrier), corporate governance, compensation policies and practices, such as clawback provisions,
executive share ownership requirements, and prohibition on short sales, pledging and hedging of Carrier securities. Based on the
review, management and the Committee concluded that Carrier’s compensation strategies, plans, programs, policies and practices
did not pose material risk due to a variety of mitigating factors.
Report of the Compensation Committee
The Compensation Committee establishes and oversees the design and function of Carrier’s executive compensation program. We
have reviewed and discussed the foregoing CD&A with the management of the company and have recommended to the Board that
the CD&A be included in Carrier’s Proxy Statement for the 2024 Annual Meeting.
Compensation Committee
Michael A. Todman, Chair
Jean-Pierre Garnier
John J. Greisch
Susan N. Story
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Compensation Tables
Summary Compensation Table
CHANGE
IN PENSION
VALUE AND
NON-EQUITY NONQUALIFIED
INCENTIVE DEFERRED
STOCK OPTION PLAN COMPENSATION ALL OTHER
SALARY BONUS AWARDS AWARDS COMPENSATION EARNINGS COMPENSATION TOTAL
NAME AND POSITION YEAR ($) ($) ($)1 ($)2
($)3 ($)4
($)5 ($)
2023 1,387,500 — 6,127,211 5,894,030 3,503,500 36,319 746,640 17,695,200
David Gitlin
Chairman & Chief 2022 1,337,500 — 4,483,081 4,530,856 2,013,120 — 857,690 13,222,247
Executive Officer
2021 1,275,000 — 4,708,211 4,359,119 3,827,200 — 723,285 14,892,815
2023 790,000 — 2,747,681 2,643,095 1,144,000 — 183,765 7,508,541
Patrick Goris
Senior Vice President
2022 748,750 — 1,453,401 1,468,988 743,740 — 227,564 4,642,443
& Chief Financial
Officer
2021 711,250 — 1,496,298 1,385,258 1,315,600 — 257,120 5,165,526
2023 642,500 — 2,198,289 2,114,464 1,167,800 — 136,794 6,259,847
Jurgen Timperman
President, Fire & 2022 615,000 — 896,804 906,171 460,350 — 168,776 3,047,101
Security
2021 595,000 — 1,093,488 1,012,325 783,000 — 155,501 3,639,314
2023 638,600 — 1,016,807 977,935 609,340 — 151,037 3,393,719
Timothy White
President, 2022 615,000 700,000 755,129 763,089 440,820 — 144,529 3,418,567
Refrigeration
2021 225,000 500,000 1,791,985 1,790,859 853,200 — 608,412 5,769,456
2023 701,250 — 934,351 898,666 809,960 — 182,545 3,526,772
Kevin O'Connor
Senior Vice President 2022 676,000 — 802,354 810,819 507,760 — 196,195 2,993,128
& Chief Legal Officer
2021 658,250 — 889,495 823,433 973,000 — 172,580 3,516,758
2023 312,083 — 2,747,681 2,643,095 — 27,415 135,135 5,865,409
Christopher Nelson
Former President, 2022 703,750 — 1,250,639 1,263,878 695,960 — 255,227 4,169,454
HVAC
2021 665,000 — 1,208,429 1,118,849 1,157,760 — 212,431 4,362,469
1
Stock Awards. Grant date fair value of the PSUs and RSUs granted during the applicable year, calculated in accordance with FASB ASC Topic 718, but excluding the
effect of estimated forfeitures. The grant date fair values shown for PSU awards granted in 2023 to our NEOs assume target-level performance. If the PSU awards are
valued at two times the target number of shares (the maximum potential payout), then for fiscal 2023 the stock award amount would increase by $6,127,211,
$2,747,681, $2,198,289, $1,016,807, $934,351 and $2,747,681 for Messrs. Gitlin, Goris, Timperman, White, O'Connor and Nelson, respectively. For additional
information on awards made in fiscal year 2023, see the Grants of Plan-Based Awards Table and Outstanding Equity Awards Table. The assumptions made in
calculating the fair value of the PSUs granted on February 1, 2023, are set forth in Note 14 – Stock-Based Compensation to the Consolidated Financial Statements set
forth in Carrier's 2023 Annual Report on Form 10-K.
2
Option Awards. Grant date fair value of SARs granted during the applicable year, calculated in accordance with FASB ASC Topic 718, but excluding the effect of
estimated forfeitures. The assumptions made in the valuation of the SARs granted in 2023 are set forth in Note 14 – Stock-Based Compensation to the Consolidated
Financial Statements set forth in Carrier’s 2023 Annual Report on Form 10-K.
3
Non-Equity Incentive Plan Compensation. Amounts earned under the 2023 Annual Bonus Plan, based on the achievement of corporate, segment and individual
performance objectives. See “Compensation Discussion and Analysis – Section III: 2023 CEO and NEO Compensation – 2023 Annual Bonus” for additional detail
regarding the Annual Bonus Plan. For Mr. Timperman, the amount shown for 2023 includes the portion of the Performance Bonus earned based on 2023 performance
($313,350) that will not be paid until the earlier of the certification of the 2024 financial plan results or the completion of the divestiture of the Fire & Security businesses.
4
Change in Pension Value and Nonqualified Deferred Compensation Earnings. The amounts in this column reflect the change, if any, in the year-over-year actuarial
present value of each NEO’s accrued benefit under Carrier’s Pension Preservation Plan ("PPP"). Actuarial value computations are based on the assumptions disclosed
in the Pension Benefits Table. For Messrs. Gitlin and Nelson, the increase in the Carrier PPP benefit is primarily attributable to one year of pension growth coupled with
the increase in the Cash Balance Interest Crediting rate from 4.00% to 4.50%. This is partially offset by the impacts of the increase in the discount rate used to value
Carrier's PPP benefit from 5.25% in 2022 to 5.75% in 2023, which reduces the value of the benefit. The balance for Mr. Nelson includes the impact of commencement of
annuity distributions on June 1, 2023. Carrier’s Deferred Compensation Plan ("DCP") does not provide above-market rates of return, so no amounts are reported here.
2024 Proxy Statement 49
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5
All Other Compensation. The 2023 amounts in this column consist of the following items:
COMPANY
CONTRIBUTIONS
PERSONAL TO
USE OF COMPANY NONQUALIFIED
CORPORATE INSURANCE CONTRIBUTIONS RETIREMENT FINANCIAL HEALTH EXECUTIVE
AIRCRAFT PREMIUMS TO 401(K) PLANS PLANS PLANNING BENEFITS PHYSICAL MISCELLANEOUS TOTAL
NAME ($)a ($)b ($)c ($)d ($)e ($)f ($)g ($)h ($)
D. Gitlin 181,360 115,692 26,100 368,372 17,490 29,548 2,963 5,115 746,640
P. Goris — — 30,030 109,540 16,000 22,870 2,365 2,960 183,765
J. Timperman — — 30,030 70,329 13,115 22,565 — 755 136,794
T. White 14,223 — 30,030 65,023 17,490 22,555 — 1,716 151,037
K. O'Connor 26,921 — 30,030 79,990 17,490 22,683 2,371 3,060 182,545
C. Nelson — — 37,228 79,705 8,673 9,529 — — 135,135
a
Incremental variable operating costs incurred for personal air travel, which includes fuel (calculated on the basis of aircraft-specific average consumption rates and
fleet average fuel costs), fleet average landing and handling fees for both domestic and international trips, crew lodging and meal allowances, catering and hourly
maintenance contract charges, when applicable. Because fleet-wide aircraft utilization is primarily for business purposes (approximately 93% in 2023), capital and
other fixed expenditures are not treated as an incremental cost. When an NEO experienced personal travel during a trip that was classified as primarily business in
nature, the incremental mileage and operating costs incurred as a result of the personal travel were allocated to the NEO. The Carrier Board of Directors authorized
Mr. Gitlin to use up to 50 hours of personal time on the corporate aircraft of which 37.2 were utilized. No tax reimbursements are provided to NEOs for taxable income
resulting from personal use of the aircraft.
b
Premiums paid on behalf of Mr. Gitlin under the grandfathered CEO Life Insurance Policy. Under this plan, Carrier pays the premiums on a cash value life insurance
contract owned by the CEO. Life insurance benefits equal up to three times the CEO’s actual or projected base salary at age 62. Once vested, at age 55, Carrier
funds the policy to maintain coverage following retirement.
c
Dollar value of company matching and age-based company automatic contributions made into the Carrier Retirement Savings Plan.
d
Dollar value of company contributions to the Carrier Savings Restoration Plan (“SRP”) and the Carrier Automatic Contribution Excess Plan (“CACEP”). Under the
SRP, participants are credited with a benefit equal to the company matching contribution that the NEO did not receive under the Carrier Retirement Savings Plan due
to IRC limits. The CACEP provides an additional age-based company automatic contribution for compensation earned over IRC limits.
e
Costs associated with a financial planning benefit available to NEOs provided by a third party.
f
Costs incurred by the company associated with broad-based company-covered healthcare benefits. In addition, certain NEOs are eligible for grandfathered long-term
disability benefits described on page 45. However, because no cost is incurred unless the NEO actually becomes disabled, no amount is reflected in this column.
g
Represents cost of annual executive physical covered by the company.
h
Represents costs to the company related to Board gifts. For Mr. Gitlin, this amount also includes a credit or $2,503 due to his decision to opt-out of the company's
basic life insurance and $2,612 related to Board gifts.
50 Carrier Global Corporation
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Grants of Plan-Based Awards Table
ALL OTHER
ALL OTHER OPTION GRANT DATE
STOCK AWARDS: EXERCISE FAIR
ESTIMATED FUTURE PAYOUTS ESTIMATED FUTURE PAYOUTS AWARDS: NUMBER OF OR BASE VALUE OF
UNDER UNDER NUMBER OF SECURITIES PRICE OF STOCK
NON-EQUITY INCENTIVE PLAN AWARDS2 EQUITY INCENTIVE PLAN AWARDS3 SHARES OF UNDERLYING OPTION AND OPTION
THRESHOLD TARGET MAXIMUM THRESHOLD TARGET MAXIMUM STOCK OR OPTIONS AWARDS AWARDS
GRANT DATE1 ($) ($) ($) (#) (#) (#) UNITS (#) (#)4 ($/SH)5 ($)6
D. Gitlin
— 409,150 2,450,000 4,900,000 — — — — — — —
02/01/2023 — — — 15,977 127,810 255,620 — — — 6,127,211
02/01/2023 — — — — — — — 506,360 46.14 5,894,030
P. Goris
— 133,600 800,000 1,600,000 — — — — — — —
02/01/2023 — — — 7,165 57,315 114,630 — — — 2,747,681
02/01/2023 — — — — — — — 227,070 46.14 2,643,095
J. Timperman
— 97,695 585,000 1,170,000 — — — — — — —
02/01/2023 — — — 5,732 45,855 91,710 — — — 2,198,289
02/01/2023 — — — — — — — 181,655 46.14 2,114,464
T. White
— 96,913 580,320 1,160,640 — — — — — — —
02/01/2023 — — — 2,652 21,210 42,420 — — — 1,016,807
02/01/2023 — — — — — — — 84,015 46.14 977,935
K. O'Connor
— 94,589 566,400 1,132,800 — — — — — — —
02/01/2023 — — — 2,437 19,490 38,980 — — — 934,351
02/01/2023 — — — — — — — 77,205 46.14 898,666
C. Nelson
— 133,600 800,000 1,600,000 — — — — — — —
02/01/2023 — — — 7,165 57,315 114,630 — — — 2,747,681
02/01/2023 — — — — — — — 227,070 46.14 2,643,095
1
The Committee approved the 2023 annual LTI awards at its regularly scheduled meeting on February 1, 2023, effective immediately.
2
Represents the 2023 annual bonus established for each NEO under the Annual Bonus Plan, which is an incentive program designed to reward achievement of annual
performance goals. Threshold amounts are determined based on the assumption that only one of the performance goals is achieved at threshold. The performance
measures and methodology for calculating payouts are described in “Compensation Discussion and Analysis – Section III: 2023 CEO and NEO Compensation – 2023
Annual Bonus.”
3
Number of PSUs granted under the LTI Plan, which vest based on performance relative to three-year EPS growth (weighted at 50%) and a three-year relative TSR goal
(weighted at 50%). The number of shares that were possible to earn at the time of grant ranged from 0% to a maximum of 200% of the target number of PSUs. If the
company’s three-year TSR is negative, the payout for the TSR portion of the award is capped at 100% regardless of the company’s relative TSR performance versus
the companies within a subset of the S&P 500 Industrials Index. Each PSU corresponds to one share of Carrier common stock. Unvested PSUs do not accrue dividend
equivalents. Earned PSUs vest three years from the grant date, subject to the NEO’s continued service with the company, except in certain limited circumstances
described in the footnotes to the Potential Payments on Termination or Change in Control Table. Vested PSUs are settled in unrestricted shares of Carrier common
stock after the end of the performance period following the Committee’s review and approval of performance achievement levels. Threshold amounts are determined
based on the assumption that only one of the PSU performance goals vests at threshold. See “Compensation Discussion and Analysis – Section III: 2023 CEO and
NEO Compensation – 2023 Long-Term Incentives” for more information.
4
SARs vest and become exercisable three years from the grant date, subject to the NEO’s continued service with the company, except in certain limited circumstances
described in the footnotes to the Potential Payments on Termination or Change in Control Table.
5
The SAR exercise price equals the closing price of Carrier common stock on the grant date.
6
Grant date fair value of awards granted in 2023, with vesting assumed at 100% of target for performance-based awards. Values are calculated in accordance with FASB
ASC Topic 718, excluding the effect of estimated forfeitures.
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Outstanding Equity Awards at Fiscal Year-End Table
This table reflects awards that relate to Carrier shares. Upon the Separation that occurred on April 3, 2020, vested UTC SARs were
converted into vested SARs of Carrier, Raytheon and Otis that remain exercisable until the expiration of their term, regardless of
continued employment with Carrier. Only such vested Carrier SARs are included in this table.
OPTION AWARDS STOCK AWARDS
EQUITY INCENTIVE
EQUITY INCENTIVE PLAN AWARDS:
MARKET PLAN AWARDS: MARKET OR
VALUE OF NUMBER OF PAYOUT VALUE
NUMBER OF NUMBER OF SHARES OR UNEARNED OF UNEARNED
SECURITIES SECURITIES NUMBER OF UNITS OF SHARES, UNITS OR SHARES, UNITS
UNDERLYING UNDERLYING OPTION SHARES OR STOCK THAT OTHER RIGHTS OR OTHER RIGHTS
UNEXERCISED UNEXERCISED EXERCISE OPTION UNITS OF STOCK HAVE NOT THAT HAVE NOT THAT HAVE NOT
OPTIONS (#) OPTIONS (#) PRICE EXPIRATION THAT HAVE NOT VESTED VESTED VESTED
NAME / GRANT DATE EXERCISABLE UNEXERCISABLE ($)1 DATE VESTED (#)2 ($)3 (#)4 ($)5
D. Gitlin
6
02/01/2023 — 506,360 46.14 01/31/2033 — — 255,620 14,685,369
7
02/02/2022 — 421,475 47.51 02/01/2032 — — 190,810 10,962,035
8
02/04/2021 — 440,315 38.33 02/03/2031 — — 210,857 12,113,735
05/14/2020 331,000 — 16.55 05/13/2030 — — — —
05/14/2020 330,400 — 16.55 05/13/2030 — — — —
02/04/2020 544,370 — 25.58 02/03/2030 — — — —
02/05/2019 607,182 — 20.19 02/04/2029 — — — —
01/02/2018 320,042 — 21.43 01/01/2028 — — — —
01/03/2017 46,819 — 18.53 01/02/2027 — — — —
01/04/2016 67,250 — 15.98 01/03/2026 — — — —
01/02/2015 39,158 — 19.24 01/01/2025 — — — —
9
11/12/2013 — — — — 101,357 5,822,960 — —
P. Goris
6
02/01/2023 — 227,070 46.14 01/31/2033 — — 114,630 6,585,494
7
02/02/2022 — 136,650 47.51 02/01/2032 — — 61,860 3,553,857
8
02/04/2021 — 139,925 38.33 02/03/2031 — — 67,011 3,849,782
12/01/2020 182,900 — 37.60 11/30/2030 — — — —
J. Timperman
6
02/01/2023 — 181,655 46.14 01/31/2033 — — 91,710 5,268,740
7
02/02/2022 — 84,295 47.51 02/01/2032 — — 38,170 2,192,867
8
02/04/2021 — 102,255 38.33 02/03/2031 — — 48,972 2,813,441
05/14/2020 165,200 — 16.55 05/13/2030 — — — —
9
10/16/2017 — — — — 56,292 3,233,975 — —
T. White
6
02/01/2023 — 84,015 46.14 01/31/2033 — — 42,420 2,437,029
7
02/02/2022 — 70,985 47.51 02/01/2032 — — 32,140 1,846,443
10 10
09/01/2021 42,548 85,097 57.89 08/31/2031 10,651 611,900 — —
K. O'Connor
6
02/01/2023 — 77,205 46.14 01/31/2033 — — 38,980 2,239,401
7
02/02/2022 — 75,425 47.51 02/01/2032 — — 34,150 1,961,918
8
02/04/2021 — 83,175 38.33 02/03/2031 — — 39,836 2,288,578
05/14/2020 110,200 — 16.55 05/13/2030 — — — —
02/04/2020 185,445 — 25.58 02/04/2030 — — — —
9
01/02/2020 217,150 — 25.60 01/02/2030 41,098 2,361,080 — —
C. Nelson
02/02/2022 117,570 — 47.51 02/01/2032 — — 53,230 3,058,064
02/04/2021 113,015 — 38.33 02/03/2031 — — 58,350 3,352,208
02/04/2020 185,445 — 25.58 02/03/2030 — — — —
1
The exercise price of each SAR is equal to the closing price on the NYSE of Carrier common stock on the grant date. For SARs granted prior to April 3, 2020, exercise
prices shown were adjusted upon the Separation by using the conversion methodology detailed in the Employee Matters Agreement, dated as of April 2, 2020,
among the company, UTC and Otis Worldwide Corporation (“Otis”), which is filed as Exhibit 10.3 to the company’s current report on Form 8-K filed with the SEC on
April 3, 2020 (the “Employee Matters Agreement”).
2
Reflects RSUs, including dividend equivalents reinvested as additional RSUs each time Carrier pays a dividend to shareowners during the vesting period for eligible
awards. The reinvested RSUs vest on the same date as the underlying RSUs. For RSUs granted prior to April 3, 2020, the number of RSUs was adjusted upon the
Separation by using the conversion methodology detailed in the Employee Matters Agreement.
3
Calculated by multiplying the number of unvested RSUs by $57.45, the NYSE closing price of Carrier common stock on the last trading day of 2023.
4
PSUs that are subject to vesting contingent on company performance relative to pre-established performance goals measured over a three-year period and the NEO’s
continued service, except in certain limited circumstances as detailed in footnotes to the Potential Payments on Termination or Change in Control Table. The three-year
performance period for awards granted on February 1, 2023, scheduled to vest on February 1, 2026, is January 1, 2023, through December 31, 2025 and the number of
shares shown assumes maximum-level performance. The three-year performance period for awards granted on February 2, 2022, scheduled to vest on
February 2, 2025, is January 1, 2022, through December 31, 2024 and the number of shares shown assumes target-level performance. The three-year performance
period for awards granted on February 4, 2021 was January 1, 2021, through December 31, 2023. The number of shares shown reflects vesting at 185.5% based on
actual performance at the end of the performance period. The service condition for this award was satisfied on February 4, 2024.
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5
Calculated by multiplying the number of unvested PSUs by $57.45, the NYSE closing price of Carrier common stock on the last trading day of 2023.
6
SARs scheduled to vest on February 1, 2026, subject to the NEO’s continued service, except in certain limited circumstances as described in the footnotes to the
Potential Payments on Termination or Change in Control Table.
7
SARs scheduled to vest on February 2, 2025, subject to the NEO’s continued service, except in certain limited circumstances as described in the footnotes to the
Potential Payments on Termination or Change in Control Table.
8
SARs and RSUs that vested on February 4, 2024.
9
One-time legacy RSU grant, which will vest in the event of a mutually agreeable separation following three years of grant date, upon death, disability or qualified
termination following a change in control.
10
SAR and RSU awards granted to Mr. White in connection with his hire, which will vest one-third per year on the anniversary of the grant date, subject to continued
service or earlier as described in the footnotes to the Potential Payments on Termination or Change in Control Table.
Option Exercises and Stock Vested Table
This table reflects exercises of Carrier SARs, or vesting of Carrier PSUs or RSUs, during fiscal year 2023.
OPTION AWARDS STOCK AWARDS
NUMBER OF SHARES VALUE REALIZED NUMBER OF SHARES VALUE REALIZED
ACQUIRED ON EXERCISE ON EXERCISE ACQUIRED ON VESTING ON VESTING
NAME (#)1 ($)2 (#)3 ($)4
D. Gitlin — — 375,703 16,323,438
P. Goris — — 18,457 982,282
J. Timperman 530,611 15,995,959 117,043 5,049,583
T. White — — 10,611 614,801
K. O'Connor — — 137,147 5,909,659
C. Nelson 941,006 24,960,907 125,908 5,465,187
1
SARs exercised during fiscal 2023. Includes exercises by Mr. Nelson after termination of employment as permitted per the applicable post-termination exercise period in
the associated Schedule of Terms for SARs that were outstanding and vested at the time of termination of employment.
2
Calculated by multiplying the number of shares acquired on exercise by the difference between the market price of Carrier common stock on the exercise date and the
exercise price of the SAR.
3
RSUs and Founder's Grant PSUs that vested in 2023.
4
Calculated by multiplying the number of vested RSUs and PSUs by the market price of Carrier common stock on the vesting date.
Pension Benefits
Overview of Pension Preservation Plan ("PPP")
Carrier inherited a frozen executive nonqualified PPP from UTC/RTX upon the Separation. Based on date of hire, participants either
accrued benefits using a final average earnings ("FAE"), cash balance or hybrid formula. Effective December 31, 2019, benefit
accruals under the PPP were frozen, other than with respect to interest credits which continue to accrue for participants eligible for
the cash balance accrual formula. Messrs. Gitlin and Nelson are the only NEOs eligible for this legacy plan. Mr. Gitlin's benefit under
the PPP is composed of both FAE and cash balance benefits, and Mr. Nelson's are determined using the cash balance formula.
Distribution Options
Plan participants may elect the following distribution options:
PLAN FAE BENEFIT FORMULA CASH BALANCE BENEFIT FORMULA
Pension Preservation Plan ▪ Lump-sum payment1 ▪ Lump-sum payment
▪ Annuity payments ▪ Annuity payments
▪ Two- to 10-year annual installments ▪ Two- to 10-year annual installments
NEO Election ▪ Mr. Gitlin: Lump-sum payment ▪ Mr. Gitlin: Lump-sum payment
▪ Mr. Nelson: Annuity payments2
1
Uses a discount rate equal to the Barclay’s Capital Municipal Bond Index averaged over five years (currently 1.962%). Note that this rate uses the November 30, 2023,
yield in the average, which is consistent with ASC 715-30 year-end 2023 disclosure reporting. Actual lump sums paid in 2024 will be based on a PPP lump-sum rate of
1.880% which uses the Barclay’s 10-Year (8-12) Capital Municipal Bond Yields as of December 31, 2023. This non-taxable investment index is intended to yield an
after-tax income stream on the net after-tax proceeds reinvested in tax-free bonds that are comparable to a more tax efficient annuity distribution.
2
Mr. Nelson was hired after 2001. Therefore, his benefit under the PPP is determined under the cash balance benefit formula. Mr. Nelson's employment ended on May
26, 2023, and he started receiving this benefit in the form of a monthly annuity effective June 1, 2023.
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Vesting and Retirement
Under Carrier’s PPP, vesting requires three years of service. The normal retirement age under both the FAE and the cash balance
benefit formulas is 65, but the FAE formula also provides full retirement benefits at age 62 for a participant who retires with at least
10 years of service. Early retirement benefits also are available under the FAE formula beginning at age 55 with at least 10 years of
service, reduced by 0.2% for each month by which retirement precedes age 62. The value of the cash balance account is not
impacted by an employee’s age at retirement. As of December 31, 2023, none of the NEOs were eligible for early retirement under
the FAE formula.
NUMBER OF YEARS PRESENT VALUE
OF CREDITED OF ACCUMULATED PAYMENTS DURING
SERVICE BENEFIT LAST FISCAL YEAR
NAME PLAN NAME (#) ($)1 ($)
D. Gitlin2 Pension Preservation Plan 22 1,863,484 —
P. Goris3 Pension Preservation Plan — — —
J. Timperman3 Pension Preservation Plan — — —
T. White3 Pension Preservation Plan — —
K. O'Connor3 Pension Preservation Plan — — —
C. Nelson4 Pension Preservation Plan 16 407,479 16,620
1
The following assumptions were used to determine the present value of the accumulated pension benefit: (i) the NEOs are assumed to retire at age 62 for the final
average earnings benefit and age 65 for the cash balance benefit, which are the earliest dates at which the NEOs can retire without a reduction of benefits due to age;
(ii) projected lump-sum payments under the PPP final average earnings benefit are calculated using 1.962% for 2023 retirements and grading up to an ultimate
long-term interest rate of 4.0% (for retirements in 2027 and later years). There are no additional service credits for accrual purposes under the PPP. This table does not
include UTC's Employee Retirement Plan, which remained with UTC/RTX and has no relation to Carrier service following the Separation.
2
The estimated lump-sum value of the nonqualified portion of the retirement benefits accrued under the PPP is $3,060,587 for Mr. Gitlin, assuming retirement or
termination on December 31, 2023, payable as of such date or attainment of age 55 (if later) assuming payment following December 31, 2023, on a lump-sum basis.
3
Messrs. Goris, White and O'Connor were hired by Carrier after January 1, 2010, and, therefore, do not participate in the PPP. Mr. Timperman transitioned to a U.S.-
based employee after January 1, 2010, and, therefore. does not participate in the PPP.
4
Mr. Nelson was hired after July 1, 2002, and therefore, his entire pension benefit is determined based on the cash balance formula. Mr Nelson's employment ended on
May 26, 2023, and he commenced 10-year annuity benefits effective June 1, 2023.
Nonqualified Deferred Compensation Table
Carrier offers NEOs the opportunity to participate in certain nonqualified deferred compensation plans that provide the NEOs with
longer-term savings opportunities on a tax-efficient basis.
The Savings Restoration Plan is an unfunded, nonqualified plan that permits NEOs to defer up to an additional 6% of their
compensation once they have exceeded the IRC compensation limits applicable to Carrier's qualified 401(k) plan. This plan also
matches the deferral contributions using the same matching formula that would apply under the 401(k) plan were it not for IRC
contribution limits.
The Automatic Contribution Excess Plan is an unfunded, nonqualified plan providing the age-based company automatic and matching
contributions NEOs would have received under Carrier's qualified 401(k) plan were it not for IRC compensation and contribution
limits.
The Deferred Compensation Plan is an unfunded, nonqualified plan that permits NEOs to defer up to 50% of their base salary and up
to 70% of their annual bonus.
EXECUTIVE REGISTRANT AGGREGATE AGGREGATE AGGREGATE
CONTRIBUTIONS CONTRIBUTIONS EARNINGS WITHDRAWALS/ BALANCE AS OF
IN LAST FY IN LAST FY IN LAST FY DISTRIBUTIONS DECEMBER 31, 2023
NAME PLAN1 ($)2 ($)3 ($)4 ($) ($)5
D. Gitlin Savings Restoration Plan 184,327 110,542 790,222 — 3,510,026
Automatic Contribution Excess Plan — 257,830 187,698 — 1,229,986
P. Goris Savings Restoration Plan 72,224 43,335 58,427 — 329,108
Automatic Contribution Excess Plan — 66,206 39,126 — 215,748
J. Timperman Savings Restoration Plan 46,371 27,823 75,506 — 495,357
Automatic Contribution Excess Plan — 42,507 6,392 — 246,650
T. White Deferred Compensation Plan 96,187 — 11,410 — 107,597
Savings Restoration Plan 39,675 23,805 12,401 — 124,491
Automatic Contribution Excess Plan — 41,218 2,215 — 101,940
K. O'Connor Savings Restoration Plan 52,741 31,644 35,871 — 287,885
Automatic Contribution Excess Plan — 48,346 5,047 — 200,742
C. Nelson6 Savings Restoration Plan 40,683 24,410 488,162 — 1,989,734
Automatic Contribution Excess Plan — 55,295 50,600 — 366,955
1
NEOs are eligible to participate in various deferred compensation plans as detailed above.
2
Amounts shown in this column are included in the Salary and Bonus columns of the Summary Compensation Table on page 49.
3
Amounts shown in this column are included in the All Other Compensation column of the Summary Compensation Table on page 49.
4
Amounts shown reflect hypothetical investment returns to accounts based on fixed income, bond, target date and equity indices selected by the participant.
5
The sum of contributions (both by the NEO and Carrier) and credited earnings on those deferrals, less withdrawals. Of these totals, the following amounts have been
included in the Summary Compensation Table in prior years: $2,045,161 (Mr. Gitlin); $290,240 (Mr. Goris); $422,106 (Mr. Timperman); $107,600 (Mr. White); $327,568
(Mr. O'Connor); and $609,860 (Mr. Nelson).
6
Mr. Nelson ended employment on May 26, 2023, and his balances will begin to be distributed, in accordance with the terms of each respective plan, in the year following
retirement (2024) per the distribution elections by plan.
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Potential Payments on Termination or Change in Control Table
The table on the following page estimates the value of payments and benefits that each NEO would have been entitled to receive had
employment terminated on December 31, 2023, under various hypothetical circumstances. Under Carrier’s programs, benefit
eligibility and the value of benefits a NEO may receive vary depending on the reason for termination and whether the NEO is eligible
for retirement at that time. The equity amounts reflect the applicable unvested portion that would become vested as a result of the
identified termination event.
Mr. Nelson is not included in the table because his employment ended on May 26, 2023 and he was not eligible for termination
payments at year-end. Upon his departure, he did not receive termination payments described in this section, other than any deferred
compensation or retirement benefits described above and equity awards for which he had satisfied retirement criteria. Eligible SARs
were vested, and eligible PSUs will continue to vest subject to performance adjustment, until their scheduled vest date.
Carrier does not provide automatic “single-trigger” accelerated vesting of equity compensation or excise tax gross-up payments to
any NEOs in the event of a change in control of the company. Carrier offers NEOs the opportunity to participate in the nonqualified
deferred compensation plans described above. Please see the Pension Benefits and Nonqualified Deferred Compensation Table
sections above for information regarding the amount and form of benefits that will be paid out in the event of a termination..
TERMINATION REASON D. GITLIN ($) P. GORIS ($) J. TIMPERMAN ($) T. WHITE ($) K. O'CONNOR ($)
Voluntary Termination
Cash Payment — — — — —
Equity1,2 12,608,284 — 2,793,008 705,591 —
Total due to Termination 12,608,284 — 2,793,008 705,591 —
Involuntary Termination (not for cause)
Cash Payment3 — 2,000,000 — 1,547,520 —
Benefit Continuation and Other Programs4 68,410 61,941 57,111 61,664 61,717
Equity5 18,431,244 3,468,877 6,026,983 705,591 4,386,217
Total due to Termination 18,499,654 5,530,818 6,084,094 2,314,775 4,447,934
Death or Disability6
Cash Payment7 2,450,000 800,000 585,000 580,320 566,400
CEO Life Insurance8 7,000,000 — — — —
Equity9,10 43,512,219 13,746,885 13,328,812 4,294,336 8,908,697
Total due to Termination 52,962,219 14,546,885 13,913,812 4,874,656 9,475,097
Termination Following a Change in Control11
Cash Payment12 14,000,000 4,000,000 3,055,000 3,030,560 3,115,200
Benefit Continuation and Other Programs13 68,410 61,941 57,111 61,664 61,717
Equity14 51,748,473 16,381,370 15,156,247 4,741,175 10,438,328
Total due to Termination 65,816,883 20,443,311 18,268,358 7,833,399 13,615,245
1
In the event of voluntary termination, unvested SAR and RSU awards granted under Carrier’s annual LTI Plan that are outstanding for more than one year will vest only
after attaining qualifying retirement under the LTI Plan, defined as either: (i) age 65; (ii) age 55 plus 10 years of service; or (iii) “Rule of 65” – age 50 to 54 plus years of
service add up to 65 or more. For NEOs who have attained qualifying retirement status, unvested PSUs granted under Carrier’s annual LTI Plan that are outstanding for
more than one year will remain eligible to vest at the completion of the performance period to the extent performance targets are achieved. Messrs. Gitlin, Timperman
and White have satisfied a qualifying retirement condition. For non-retirement eligible NEOs, all unvested awards are cancelled, and vested SARs may be exercised up
to 90 days following separation. Special out-of-cycle or enhanced annual awards (SARs, RSUs and PSUs) and one-time RSU awards do not have retirement eligibility
treatment and, therefore, forfeit upon voluntary termination.
2
Equity awards are valued based on the closing price of Carrier common stock on the NYSE on the last trading day of 2023 ($57.45). For SARs, that value is based on
the difference between the closing price and the exercise price (as long as that value is positive) multiplied by the number of SARs. For the 2023 PSU portion of the
annual grant, values shown reflect target performance as of December 31, 2023. For the 2022 PSU portion of the annual grant, values shown reflect estimated payout
based on performance as of December 31, 2023. For the 2021 PSU portion of the annual grant, values shown reflect the actual payout based on performance through
December 31, 2023.
3
In the event of a qualifying involuntary termination (not for cause), the Senior Executive Severance Plan provides cash severance based on the NEO’s annual base
salary in effect at the time of termination in the amount of (i) two times annual base salary for the CEO, and (ii) one and one-half times annual base salary for all other
NEOs. The Senior Executive Severance Plan also provides for a prorated payout of the NEO’s target annual bonus based on the number of days worked in the fiscal
year up until the date of termination. Messrs. Gitlin, Timperman and O'Connor would receive a cash severance payment if the value of their one-time RSU awards is
less than what the cash severance payment would be under the Senior Executive Severance Plan, reduced by the value of the one-time RSU award at termination.
4
In the event of an involuntary termination (not for cause), the Senior Executive Severance Plan provides for the continuation of medical benefits and financial planning
services for 12 months following the termination. The Senior Executive Severance Plan also provides for 12 months of outplacement services for each NEO.
5
In the event of involuntary termination (not for cause), for NEOs who have attained qualifying retirement status, SAR awards granted under Carrier’s annual LTI Plan
that are outstanding for more than one year will vest. PSUs granted under Carrier’s annual LTI Plan that are outstanding for more than one year will remain eligible to
vest at the completion of the performance period to the extent performance targets are achieved. For NEOs who have not yet qualified for retirement, but have awards
granted under Carrier’s annual LTI Plan that are outstanding for more than one year, a prorated portion of SARs will vest. A prorated portion of annual PSU awards will
remain eligible to vest at the completion of the performance period to the extent performance goals are achieved. Special out-of-cycle and enhanced annual awards
(SAR, RSU and PSU) and one-time RSU awards do not have retirement eligibility treatment and, therefore, forfeit upon involuntary termination (not for cause). One-time
RSUs will vest in the case of mutually agreeable separation following three years of service from the date of grant. As of December 31, 2023, Messrs. Gitlin,
Timperman, and O'Connor have met the service condition. Equity awards are valued based on the closing price of Carrier common stock on the NYSE on the last
trading day of 2023 ($57.45). For SARs, that value is based on the difference between the closing price and the exercise price (as long as that value is positive)
multiplied by the number of SARs.
6
Messrs. Gitlin, Timperman and O'Connor also are eligible for a grandfathered long-term disability benefit equal to 80% of their base salary plus target bonus
compensation as part of the Legacy UTC Compensation Arrangement.In the event of an NEO's disability, the NEO's estate would be eligible to receive a prorated
payout of the annual bonus at target. In the event of an NEO's death, the estate would be treated the same.
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7
In the event of the death of the CEO, Mr. Gitlin, the CEO Life Insurance Policy provides a death benefit that the beneficiary would be paid assuming the insured’s death
occurs at the end of the policy year.
8
In the event of a termination due to death, the LTI Plan provides for the accelerated vesting of all outstanding equity awards as of the date of death (including awards
outstanding for less than one-year, special out-of-cycle, enhanced annual awards and one-time RSU awards). Equity awards are valued based on the closing price of
Carrier common stock on the NYSE on the last trading day of 2023 ($57.45). For SARs that value is based on the difference between the closing price and the exercise
price (as long as that value is positive) multiplied by the number of SARs. For the PSU portion of awards, values shown reflect target performance as of
December 31, 2023.
9
In the event of a termination due to disability, the LTI Plan provides that no outstanding awards will be forfeited (including awards outstanding for less than one year and
one-time awards). Awards granted by UTC prior to January 1, 2019, will continue to vest in accordance with their terms that applied prior to the Separation. Awards
granted on or after January 1, 2019, will continue to vest on the earlier of (i) the vesting date specified in the schedule of terms or (ii) 29 months following the date the
NEO incurs the disability. For the PSU portion of awards, values shown reflect target performance as of December 31, 2023.
10
In the event the payments would be subject to the golden parachute excise tax under IRC Section 280G, the Change in Control Severance Plan provides that the NEO
will either receive all such payments and benefits and pay the excise tax, or such payments and benefits will be reduced to the extent necessary so that the excise tax
does not apply, whichever approach results in a higher after-tax amount of the payments and benefits being retained by the NEO. Given the uncertainty of these
calculations, this table does not reflect the impact of the better net after-tax calculation.
11
In the event of a qualifying termination following a change in control, the Change in Control Severance Plan provides cash severance based on the NEO’s annual base
salary and target annual bonus in effect at the time of termination in the amount of (i) three times annual base salary plus target annual bonus for the CEO, and (ii) two
times annual base salary plus target annual bonus for all other NEOs. The Change in Control Severance Plan also provides for a prorated payout of the NEO’s target
annual bonus based on the number of days worked in the fiscal year up until the date of termination.
12
In the event of a qualifying termination following a change in control, the Change in Control Severance Plan provides for the continuation of medical benefits and
financial planning services for 12 months following the termination. The Change in Control Severance Plan also provides for 12 months of outplacement services for
each NEO.
13
In the event of a qualifying termination following a change in control, the LTI Plan provides for the accelerated vesting of all outstanding equity awards (including awards
outstanding for less than one year and one-time awards). Equity awards are valued based on the closing price of Carrier common stock on the NYSE on the last trading
day of 2023 ($57.45). For SARs, that value is based on the difference between the closing price and the exercise price (as long as that value is positive) multiplied by
the number of SARs. PSUs granted under the LTI Plan vest at the greater of target or actual performance. For the 2023 PSU portion of the annual grant, values shown
reflect target performance as of December 31, 2023. For the 2022 PSU portion of the annual grant, values shown reflect estimated payout based on performance as of
December 31, 2023. For the 2021 PSU portion of the annual grant, values shown reflect the actual payout based on performance through December 31, 2023.
CEO Pay Ratio
Background
As required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC adopted a rule requiring companies to
disclose the ratio of the median employee’s total annual compensation relative to total annual compensation of the CEO. The
following section explains the methodology that we used, in accordance with the SEC rules, to identify the median employee and to
calculate the 2023 ratio.
How We Identified the Median Employee
As permitted under the SEC rules, Carrier used the same median employee that it used in its disclosure for fiscal year 2022 since
during the company's last completed fiscal year (2023) there has been no material change to its employee population or employee
compensation arrangements that it reasonably believes would result in a significant change to its pay ratio disclosure.
The following parameters were used for fiscal year 2022 to identify the employee whose pay was at the median of all Carrier
employees globally.
Consistently Applied Compensation Measure
The compensation measure we used to identify the median employee was gross cash compensation paid to employees from
October 1, 2021, to September 30, 2022. Gross cash compensation varies by country and is based on local pay practices, but
generally includes:
▪ Base salary (including any local allowances)
▪ Incentive pay (including cash bonuses, sales incentives and other variable pay programs)
▪ Any other cash awards or payments1
1
In some countries, due to differences in payroll systems and local laws and regulations, gains realized on the vesting and/or exercise of equity awards, as well as
company contributions to government-sponsored benefit plans, may be included.
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Employees Included and Excluded
For the purposes of identifying the median employee, we considered approximately 57,000 active Carrier employees (excluding the
CEO, but including all temporary and seasonal employees). These employees were identified as of October 1, 2022, and were
located in 46 countries in which Carrier has operations (approximately 12,530 were U.S. based).
We then excluded 2,826 employees from 10 countries under the SEC’s de minimis exemption.2 The remaining population of
approximately 54,000 workers in 36 countries represents approximately 95% of active employees on that date.
Methodology and Material Assumptions
Annualized pay. Pay was annualized for employees who worked a partial year between October 1, 2021, and September 30, 2022.
Partial-year employees include mid-year hires, employees on paid or unpaid leave, and employees on active military duty.
Foreign exchange rates. Foreign currencies were converted into U.S. dollars as of the applicable measurement dates to determine
the median employee and the associated total annual compensation.
Calculating the Ratio
Summary Compensation Table Values
2023 total compensation was calculated for the CEO and the median employee for the full year using the same methodology required
by the SEC for reporting in the Summary Compensation Table (see page 49). For the CEO and the median employee, the Summary
Compensation Table values include employee fringe benefits, such as company contributions to healthcare and retirement plans.
Results
The 2023 total annual compensation value for Mr. Gitlin was $17,695,200 and for Carrier’s global median employee was $51,614,
resulting in a ratio of 343:1.
Comparing Carrier’s Ratio to Other Companies
This ratio is a reasonable estimate calculated using a methodology consistent with the SEC rules, as described above. Because
applicable SEC rules permit various methodologies, assumptions and exclusions, our CEO pay ratio may not be comparable to ratios
calculated and disclosed by other companies.
2
The countries and approximate number of Carrier employees excluded from the calculation are as follows: Brazil (314), Bulgaria (14), Denmark (157), Greece (58),
Hungary (437), Kuwait (99), Malaysia (261), Poland (1,369), Slovakia (35), Vietnam (82).
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Pay Versus Performance Disclosure
VALUE OF INITIAL FIXED $100
INVESTED BASED ON
SUMMARY CUMULATIVE ADJUSTED
COMPENSATION AVERAGE SCT TOTAL CUMULATIVE NET INCOME DILUTED
TABLE (SCT) COMPENSATION TOTAL FOR AVERAGE CAP SHAREHOLDER DOW JONES (GAAP) EARNINGS PER
TOTAL FOR ACTUALLY PAID NON-CEO NEOS TO NON-CEO RETURN (TSR) INDUSTRIAL REPORTED SHARE (EPS)
Year CEO ($)1 ("CAP") TO CEO ($)2
($)3 NEOS ($)4 ($)5 INDEX TSR ($)6 ($B)7 ($)8
(a) (b) (c) (d) (e) (f) (g) (h) (i)
2023 17,695,200 42,696,403 5,310,858 8,750,047 441 179 1.349 2.73
2022 13,222,247 (20,060,104) 3,819,391 (6,280,707) 317 157 3.534 2.34
2021 14,892,815 61,128,628 4,734,191 17,061,157 417 176 1.664 2.27
2020 15,440,951 64,414,726 5,764,240 18,823,830 287 145 1.982 1.66
1
The dollar amounts reported in column (b) are the amounts of total compensation reported for Mr. Gitlin (our CEO) for each corresponding year in the “Total” column of
the Summary Compensation Table. Refer to “Compensation Tables – Summary Compensation Table.”
2
The dollar amounts reported in column (c) represent the amount of CAP to Mr. Gitlin, as computed in accordance with Item 402(v) of Regulation S-K. The dollar
amounts do not reflect the actual amount of compensation earned by or paid to Mr. Gitlin during the applicable year. In accordance with the requirements of Item 402(v)
of Regulation S-K, the following adjustments were made to Mr. Gitlin's total compensation for each year to determine the CAP:
REPORTED CHANGE IN
REPORTED REPORTED VALUE THE ACTUARIAL
SCT TOTAL OF EQUITY EQUITY AWARD PRESENT VALUE OF PENSION BENEFIT
Year FOR CEO ($) AWARDS ($)a ADJUSTMENTS ($)b PENSION BENEFITS ($)c ADJUSTMENTS ($)d CAP TO CEO
2023 17,695,200 (12,021,241) 37,058,763 (36,319) — 42,696,403
2022 13,222,247 (9,013,937) (24,268,414) — — (20,060,104)
2021 14,892,815 (9,067,330) 55,303,143 — — 61,128,628
2020 15,440,951 (10,997,911) 60,274,303 (302,617) — 64,414,726
a.
The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns in the Summary
Compensation Table for the applicable year for the CEO.
b.
The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: (i) the year-end fair value of any
equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; (ii) the amount of change as of the end of the
applicable year (from the end of the prior fiscal year) in fair value of any awards granted in prior years that are outstanding and unvested as of the end of the
applicable year; (iii) for awards that are granted and vested in same applicable year, the fair value as of the vesting date; (iv) for awards granted in prior years
that vest in the applicable year, the amount equal to the change as of the vesting date (from the end of the prior fiscal year) in fair value; (v) for awards
granted in prior years that are determined to fail to meet the applicable vesting conditions during the applicable year, a deduction for the amount equal to the
fair value at the end of the prior fiscal year; and (vi) the dollar value of any dividends or other earnings paid on stock or option awards in the applicable year
prior to the vesting date that are not otherwise reflected in the fair value of such award or included in any other component of total compensation for the
applicable year. For 2020 only, the change in fair value uses a starting measurement period beginning at the Separation date of April 3, 2020. The valuation
assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant. The amounts deducted or added in calculating the
equity award adjustments are as follows:
VALUE OF
YEAR-OVER- DIVIDENDS OR
FV AS OF YEAR CHANGE FV AT THE END OTHER EARNINGS
VESTING IN FV OF OF THE PRIOR PAID ON STOCK
YEAR-OVER- DATE OF EQUITY YEAR OF EQUITY OR OPTION
YEAR-END FAIR YEAR CHANGE EQUITY AWARDS AWARDS THAT AWARDS NOT
VALUE (FV) OF IN FV OF AWARDS GRANTED IN FAILED TO MEET OTHERWISE
EQUITY AWARDS OUTSTANDING GRANTED PRIOR YEARS VESTING REFLECTED IN FV TOTAL EQUITY
GRANTED IN THE AND UNVESTED AND VESTED THAT VESTED CONDITIONS IN OR TOTAL AWARD
YEAR EQUITY AWARDS IN THE YEAR IN THE YEAR THE YEAR COMPENSATION ADJUSTMENTS
Year ($) ($) ($) ($) ($) ($) ($)
2023 18,973,490 14,865,035 — 3,220,238 — — 37,058,763
2022 7,609,658 (30,657,192) — (1,220,880) — — (24,268,414)
2021 17,023,203 38,207,535 — 72,405 — — 55,303,143
2020 35,607,693 21,373,460 — 3,293,150 — — 60,274,303
c.
The amounts included in this column are the amounts reported in the "Change in Pension Value and Nonqualified Deferred Compensation Earnings" column
of the Summary Compensation Table for each applicable year for the CEO.
d.
As described in the Pension Benefits Table on page 53 the PPP, the company's nonqualified and unfunded defined benefit plan, was frozen effective
December 31, 2019. Therefore, there are no service costs or prior service costs to report.
3
The dollar amounts reported in column (d) represent the average of the amounts reported for the company’s NEOs as a group (excluding Mr. Gitlin, who has served as
our CEO since 2020) in the “Total” column of the Summary Compensation Table in each applicable year. The names of each of the NEOs (excluding Mr. Gitlin) included
for purposes of calculating the average amounts in each applicable year are as follows: (i) for 2023, Messrs. Goris, Timperman, White, O'Connor and Nelson; (ii) for
2022 and 2021, Messrs. Goris, Nelson, White and Timperman; and (ii) for 2020, Messrs. Goris, Nelson, McLevish, Appel and O'Connor.
4
The dollar amounts reported in column (e) represent the average amount of CAP to the NEOs as a group (excluding Mr. Gitlin), as computed in accordance with Item
402(v) of Regulation S-K. The dollar amounts do not reflect the actual average amount of compensation earned by or paid to the NEOs as a group (excluding Mr. Gitlin)
during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation
for the NEOs as a group (excluding Mr. Gitlin) for each year to determine the CAP, using the same methodology described above in Note 2:
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AVERAGE REPORTED AVERAGE
AVERAGE AVERAGE CHANGE IN THE PENSION
REPORTED SCT REPORTED VALUE AVERAGE ACTUARIAL PRESENT BENEFIT AVERAGE CAP
TOTAL FOR OF EQUITY AWARDS EQUITY AWARD VALUE OF PENSION ADJUSTMENTS TO NON-CEO
Year NON-CEO NEOS ($)a ADJUSTMENTS ($)b BENEFITS ($)c
($)d NEOS
2023 5,310,858 (3,784,413) 7,229,085 (5,483) — 8,750,047
2022 3,819,391 (2,189,525) (7,910,573) — — (6,280,707)
2021 4,734,191 (2,724,373) 15,051,339 — — 17,061,157
2020 5,764,240 (4,198,950) 17,333,302 (74,762) — 18,823,830
a.
The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns in the Summary
Compensation Table for the applicable year for the non-CEO NEOs.
b.
The amounts deducted or added in calculating the total average equity award adjustments for non-CEO NEOs in accordance with the methodology outlined
in footnote 2(b) above are as follows:
AVERAGE FV
YEAR-OVER- YEAR-OVER- AT THE END OF
AVERAGE VALUE
YEAR AVERAGE YEAR AVERAGE THE PRIOR
OF DIVIDENDS OR
CHANGE IN FV AVERAGE FV CHANGE IN FV YEAR OF
YEAR-END OF AS OF VESTING OF EQUITY EQUITY OTHER EARNINGS
AVERAGE FAIR OUTSTANDING DATE OF AWARDS AWARDS THAT PAID ON STOCK OR
VALUE (FV) OF AND EQUITY GRANTED IN FAILED TO OPTION AWARDS
EQUITY AWARDS UNVESTED AWARDS PRIOR YEARS MEET VESTING NOT OTHERWISE TOTAL AVERAGE
GRANTED IN EQUITY GRANTED AND THAT VESTED CONDITIONS IN REFLECTED IN FV EQUITY AWARD
THE YEAR AWARDS VESTED IN THE IN THE YEAR THE YEAR OR TOTAL ADJUSTMENTS
Year ($) ($) YEAR ($) ($) ($) COMPENSATION ($) ($)
2023 4,271,355 2,152,742 — 804,988 — — 7,229,085
2022 1,848,414 (4,513,074) — (5,245,913) — — (7,910,573)
2021 4,292,775 9,886,398 — 872,166 — — 15,051,339
2020 10,834,669 6,498,633 — — — — 17,333,302
c.
The amounts included in this column are the total average amounts reported in the "Change in Pension Value and Nonqualified Deferred Compensation
Earnings" column of the Summary Compensation Table for each applicable year for non-CEO NEOs.
d.
As described in the Pension Benefits Table on page 53, the PPP, the company's nonqualified and unfunded defined benefit plan, was frozen effective
December 31, 2019. Therefore, there are no service costs or prior service costs to report.
5
Cumulative TSR is calculated by (i) dividing the sum of the cumulative amount of dividends for the measurement period, assuming dividend reinvestment; and (ii) the
difference between the company’s share price at the end and the beginning of the measurement period by the company’s share price at the beginning of the
measurement period. The company’s TSR and Dow Jones Industrial Index TSR are calculated using a measurement period beginning at the Separation date of
April 3, 2020, through and including the end of the applicable fiscal year and based on a fixed investment of $100 at the measurement point.
6
Represents the weighted peer group TSR, weighted according to the respective companies’ stock market capitalization at the beginning of each period for which a
return is indicated. The peer group used for this purpose is the following published industry index: Dow Jones Industrial Index.
7
The dollar amounts reported represent the amount of net income reflected in the company’s audited financial statements for the applicable year.
8
Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items.
Financial Performance Measures
As described in greater detail in “Compensation Discussion and Analysis,” the company’s executive compensation program reflects a
pay-for-performance philosophy. The metrics that the company uses for both our long-term and short-term incentive awards are
selected based on an objective of incentivizing our NEOs to increase the value of our enterprise for our shareowners. The most
important financial performance measures used by the company to link executive compensation actually paid ("CAP") to the
company’s NEOs, for the most recently completed fiscal year, to the company’s performance are as follows:
▪ Relative TSR (the company’s TSR as compared to the Performance Peer Group established by the Compensation Committee)
▪ Adjusted EPS
▪ Sales
▪ Adjusted Operating Profit
▪ Free Cash Flow
Analysis of the Information Presented in the Pay Versus Performance Disclosure
While the company utilizes several performance measures to align executive compensation with company performance, not all of
those performance measures are presented in the Pay Versus Performance Disclosure Table. Moreover, the company generally
seeks to incentivize long-term performance, and, therefore, does not specifically align the company’s performance measures with
CAP (as computed in accordance with Item 402(v) of Regulation S-K) for a particular year. In accordance with Item 402(v) of
Regulation S-K, the company is providing the following descriptions of the relationships between information presented in the Pay
Versus Performance Disclosure Table.
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Compensation Actually Paid and Cumulative TSR
As demonstrated by the CAP vs. Cumulative TSR graph below, the amount of CAP to Mr. Gitlin and the average amount of CAP to
the company’s NEOs as a group (excluding Mr. Gitlin) is aligned with the company’s cumulative TSR over the four years presented in
the table.
The alignment of CAP with the company’s cumulative TSR over the period presented is the result of a significant portion of the CAP
to Mr. Gitlin and to the other NEOs being composed of equity awards. As described in more detail in “Compensation Discussion and
Analysis,” the company targets that 75% of the value of total compensation for Mr. Gitlin and more than 60% of the value of total
compensation awarded to the other NEOs is to be composed of equity awards, the value of which is 100% performance-based. In
addition, since the company's Separation, 75% of the annual LTI Plan awards for Mr. Gitlin and the NEOs have been linked to stock
price performance through the use of SARs and the relative TSR metric included in our PSUs.
As reflected in the graphs below, both the company's TSR and our NEO's CAP both increased in 2023, while the company delivered
solid financial results and outpaced comparators in the S&P 500 Index and Dow Jones Industrials Index. This further illustrates the
strong correlation between delivering shareowner value and our NEO's CAP.
Carrier Cumulative TSR vs. Cumulative TSR of Comparators1 CAP vs. Cumulative TSR
1
This graph compares the cumulative TSR of our common stock against the cumulative total return of the S&P 500 Index and the Dow Jones Industrials Index for the
period from April 3, 2020, to December 31, 2023, assuming in each case a fixed investment of $100 at the respective closing prices of April 3, 2020, the date of Carrier's
Separation, including reinvestment of dividends.
Compensation Actually Paid and Net Income
As demonstrated by the graph below, the CAP to Mr. Gitlin and the average amount of CAP to the company’s NEOs as a group
(excluding Mr. Gitlin) is generally aligned with the company’s net income over the four years presented in the table, with the exception
of 2022. In 2023, the CAP to Mr. Gitlin and the company's other NEOs increased as the company delivered solid financial results. As
noted previously, the 2022 GAAP Net Income was significantly higher than in other years due to proceeds received from the
divestiture of the Chubb business, which occurred in January 2022.
While the company does not use net income as a performance measure in the overall executive compensation program, the measure
of net income is correlated with the measure of adjusted operating profit, which is a performance metric in the company's Annual
Bonus Plan. As described in more detail in "Compensation Discussion and Analysis,” approximately 18% of the value of total target
compensation awarded to the NEOs consists of amounts determined under the company's Annual Bonus Plan.
CAP vs. GAAP Net Income
60 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Election of Independent Shareowner FAQs Appendix
Summary Company
Directors
Ownership Compensation Matters
Auditor Proposal
Information
Compensation Actually Paid and Adjusted Earnings Per Share
As demonstrated by the following graph, the CAP to Mr. Gitlin and the average CAP to the company’s NEOs as a group (excluding
Mr. Gitlin) is generally aligned with the company’s adjusted EPS over the four years presented in the table. Adjusted EPS represents
diluted earnings per share, excluding restructuring costs, amortization of acquired intangibles and other significant items. While the
company uses numerous financial and non-financial performance measures for the purpose of evaluating performance for the
company’s compensation programs, the company has assessed and determined that adjusted EPS is the most important financial
performance measure (that is not otherwise required to be disclosed in the table) used to link NEO's CAP to company performance.
In support of this determination, the company utilizes adjusted EPS when setting goals in the company’s LTI compensation program,
comprised of SARs and PSUs in 2023. The company targets 75% of the value of total compensation for Mr. Gitlin and more than 60%
of the value of total compensation awarded to the NEOs is to be comprised of equity awards, of which 100% is performance-based
with a specific emphasis on stock price. 50% of the PSUs awarded to Mr. Gitlin and the NEOs in 2023 are linked to the company's
adjusted EPS CAGR over a three-year performance period.
Adjusted EPS has increased each of the four years following the company's Separation in 2020, further highlighting the company's
exceptional financial performance and creation of shareowner value during this time. As noted previously, CAP declined in 2022 due
to stock price decline, despite continuing to deliver solid financial results, including a 3% increase in adjusted EPS.
CAP vs. Adjusted EPS
2024 Proxy Statement 61
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Other
Summary Company
Election of
Ownership Compensation
Audit Matters Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
AUDIT MATTERS
Report of the Audit Committee
The Audit Committee assists the Board in its oversight responsibilities relating to: the integrity of Carrier’s financial statements; the
independence, qualifications and performance of Carrier’s internal and external auditors; the company’s compliance with its policies
and procedures, internal controls, Code of Ethics and applicable laws and regulations; policies and procedures with respect to risk
assessment and management; and such other responsibilities as delegated by the Board from time to time. The Audit Committee’s
specific responsibilities and duties are set forth in the Audit Committee Charter, which is available on the company’s website
(see page 10).
Management has the primary responsibility for the financial statements and the financial reporting processes, including the system
of internal accounting controls. PricewaterhouseCoopers LLP ("PwC"), an independent registered public accounting firm and the
company’s independent auditor, is responsible for expressing an opinion on the conformity of the company’s audited financial
statements with generally accepted accounting principles in the United States (“GAAP”) and on the effectiveness of the company's
internal control over financial reporting.
In performing its oversight responsibilities, the Audit Committee has reviewed and discussed with management and the independent
auditor the company’s audited financial statements for the year ended December 31, 2023, as well as the representations of
management and the independent auditor's opinion thereon regarding the company's internal control over financial reporting as
required by Section 404 of the Sarbanes-Oxley Act. The Audit Committee discussed with PwC and Carrier’s internal auditors the
overall scope and plans for their respective audits. The Audit Committee met with PwC and the internal auditors, with and without
management present, to discuss the results of their examinations, the evaluation of Carrier's internal controls, management's
representations regarding internal control over financial reporting and the overall quality of Carrier’s financial reporting.
The Audit Committee has discussed with PwC the matters required by the applicable requirements of the Public Company Accounting
and Oversight Board (“PCAOB”). It also has discussed with PwC its independence from Carrier and its management, including the
written disclosures and letter from PwC required by the applicable requirements of the PCAOB. The Audit Committee has concluded
that PwC’s provision of non-audit services as described in the table on page 63 is compatible with PwC’s independence.
PwC represented to the Audit Committee that Carrier’s audited financial statements were fairly presented in accordance with GAAP.
Based on the reviews and discussions referred to above, the Audit Committee has recommended to the Board that the audited
financial statements be included in Carrier’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC.
The Audit Committee recommended to the Board, and the Board approved, the appointment of the firm of PwC as Carrier’s
independent auditor for 2024.
Audit Committee
Charles M. Holley, Jr. Chair
Susan N. Story
Michael A. Todman
Virginia M. Wilson
62 Carrier Global Corporation
Proposal 1: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Proposal 3: Other
Election of Shareowner FAQs Appendix
Summary Company
Directors
Ownership Compensation Matters Independent Auditor Proposal
Information
PROPOSAL 3
Ratify Appointment of Independent Auditor for 2024
WHAT ARE YOU VOTING ON?
As required by our Bylaws, we are asking shareowners to vote on a proposal to ratify the appointment of a firm of
independent registered public accountants to serve as Carrier’s independent auditor until the next annual meeting.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, served as Carrier’s independent auditor in
2023, and the Audit Committee has appointed, and the Board has approved, the firm to serve again as Carrier’s independent
auditor for 2024 until the next Annual Meeting in 2025, subject to shareowner ratification.
BOARD RECOMMENDATION: Vote FOR
Frequently Asked Questions About the Auditor
How Is the Auditor Reviewed by the Company?
The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of the company’s
independent auditor. To fulfill this responsibility, the Audit Committee engages in a comprehensive annual evaluation of the
independent auditor’s qualifications, performance and independence, and periodically considers the advisability and potential
impact of selecting a different independent registered public accounting firm to serve in that capacity.
Is the Audit Partner Rotated?
In accordance with SEC rules and PwC policies, audit partners are subject to rotation requirements that limit the number of
consecutive years a partner may provide service to our company. For lead and concurring audit partners, the maximum number of
consecutive years of service in that role is five. The selection process for the lead audit partner pursuant to this rotation policy
includes meetings between the chair of the Audit Committee and several candidates.
Will the Auditor Participate in the Annual Meeting?
Representatives of PwC will attend the 2024 Annual Meeting. They will be available to respond to appropriate shareowner questions
and will have the opportunity to make a statement if they desire to do so.
What Happens if Shareowners Do Not Ratify the Appointment of PwC?
The vote is an advisory vote and, therefore, it is not binding. The Board, however, would reconsider the appointment if the proposal is
rejected by shareowners.
What Were the Auditor’s Fees in 2023 and 2022?
(IN THOUSANDS) AUDIT($) AUDIT-RELATED($) TAX($) ALL OTHER($) TOTAL($)
2022 14,950 456 2,750 384 18,540
2023 26,658 380 9,875 268 37,181
Audit Fees. Fees in 2023 and 2022 include fees for the audit of Carrier’s consolidated annual financial statements, the review of
interim financial statements in Carrier’s quarterly reports on Form 10-Q and the performance of audits in accordance with statutory
requirements, fees associated with the issuance of comfort letters and consents, and fees for the audit of the effectiveness of
Carrier's internal control over financial reporting. Fees in 2023 also include fees associated with carve-out audit and review
procedures associated with Carrier's announced portfolio transformation and the issuance of comfort letters and consents associated
with our acquisition of the VCS Business. Audit fees for statutory audits were $7.3 million in 2023 and $6.2 million in 2022.
Audit-Related Fees. Fees in 2023 and 2022 include audit-related fees for employee benefit plan audits, advice regarding the
application of generally accepted accounting principles for proposed transactions, special reports pursuant to agreed-upon
procedures, contractually required audits and compliance assessments, and pre-implementation reviews of processes or systems.
2024 Proxy Statement 63
Proposal 1: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Proposal 3: Other
Election of Shareowner FAQs Appendix
Summary Company
Directors
Ownership Compensation Matters Independent Auditor Proposal
Information
Tax Fees. In 2023, tax fees included approximately $0.1 million for U.S. and non-U.S. tax compliance, related planning and
assistance with tax refund claims and expatriate tax services, and approximately $9.8 million for tax consulting and advisory services.
Of the $9.8 million, approximately $6.0 million represent non-recurring fees related to work performed to support Carrier's announced
portfolio transformation, including legal entity separation activity. In 2022, tax fees included approximately $600,000 for U.S. and
non-U.S. tax compliance, related planning and assistance with tax refund claims and expatriate tax services, and approximately
$2.2 million for tax consulting and advisory services.
All Other Fees. In 2023 and 2022, all other fees primarily consisted of due diligence services and accounting research software.
How Does the Audit Committee Monitor and Control Non-Audit Services?
The Audit Committee has adopted procedures requiring its review and approval in advance of all non-audit services provided by the
company’s independent auditor. All of the engagements and fees for 2023 and 2022 were approved by the Audit Committee.
The Audit Committee reviews with PwC whether the non-audit services to be provided are compatible with maintaining the firm’s
independence. The Board also has adopted the policy that in any year fees paid to the independent auditor for non-audit services
shall not exceed the fees paid for audit and audit-related services. Non-audit services consist of those described above, as included
in the tax fees and all other fees categories.
Why Should I Vote For This Proposal?
The Audit Committee and the Board believe that the continued retention of PwC as our independent auditor is in the best interest of
the company and our shareowners.
The Board of Directors recommends a vote FOR the ratification of the appointment
of PricewaterhouseCoopers LLP to serve as the company’s independent auditor
for 2024.
64 Carrier Global Corporation
Proposal 1: Proposal 3:
Proxy Our Share Proposal 2: NEO Audit Proposal 4: Other
Election of Independent FAQs Appendix
Summary Company
Directors
Ownership Compensation Matters
Auditor Shareowner Proposal Information
PROPOSAL 4
Shareowner Proposal – Transparency in Lobbying
WHAT ARE YOU VOTING ON?
We have been advised by John Chevedden, 2215 Nelson Ave., No. 205, Redondo Beach, California 90278, that he has
continuously owned no fewer than 50 shares of Carrier common stock since October 1, 2020, and that he intends to present
the shareowner proposal and supporting statement set forth below on this page 65 for consideration at the 2024 Annual
Meeting. We are not responsible for its accuracy or content.
BOARD RECOMMENDATION: Vote AGAINST – see Statement by our Board of Directors on pages 66 to 67
Shareowner Proposal and Supporting Statement
Proposal 4 – Transparency in Lobbying
Resolved, the shareowners of Carrier request the preparation of a report, updated annually, disclosing:
1 Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.
2 Payments by Carrier used for (a) director or indirect lobbying or (b) grassroots lobbying communications, in each case including
the amount of the payment and the recipient.
3 Carrier's membership in and payments to any tax-exempt organization that writes and endorses model legislation.
4 Description of management's decision-making process and the Board's oversight for making payments described above.
For purposes of this proposal, a "grassroots lobbying communication" is a communication directed to the general public that (a) refers
to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the
communication to take action with respect to the legislation or regulation. "Indirect lobbying" is lobbying engaged in by a trade
association or other organization of which Carrier is a member.
Both "direct and indirect lobbying" and "grassroots lobbying communications" include efforts at the local, state and federal levels.
The report shall be presented to the Governance Committee and posted on Carrier's website.
Supporting Statement
Full disclosure of Carrier's lobbying activities and expenditures is needed to assess whether its lobbying is consistent with its
expressed goals and shareowner interests. Carrier spent $5 million from 2020 - 2022 on federal lobbying. This does not include state
lobbying, where Carrier also lobbies but disclosure is uneven or absent. For example, Carrier spent $318,296 on lobbying in
California from 2020-2022.
Companies can give unlimited amounts to third party groups that spend millions on lobbying and often undisclosed grassroots
activity. These groups may be spending "at least double what's publicly reported."1 Carrier fails to disclose its payments to trade
associations and social welfare (SWGs), or the amounts used for lobbying, to shareowners. Carrier discloses memberships in the
Business Roundtable and National Association of Manufacturers (NAM), which together have spent over $600 million on federal
lobbying since 1998.
Carrier's lack of disclosure presents reputational risk when its lobbying contradicts company public positions. For example, Carrier
publicly supports addressing climate change and, as a provider of healthy, safe, sustainable and intelligent building and cold chain
solutions, ranked eighth on Barron's 2023 list of the 100 most sustainable companies.2 Yet the Business Roundtable opposed the
Inflation Reduction Act and its historic investments in climate action3 and NAM leverages its "influence to obstruct climate policy
progress in the U.S. at the federal, state and local levels."4 And while Carrier does not belong to the controversial American
Legislative Exchange Council, which is attacking "woke" investing,5 it was represented by NAM, which previously sat on its Private
Enterprise Advisory Council.6
Reputational damage stemming from these misalignments could harm shareowner value. Thus it will be a best practice for Carrier to
expand its lobbying disclosure.
1
https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported.
2
https://www.prnewswire.com/news-releases/carrier-ranks-no-8-on-barrons-100-most-sustainable-companies-2023-list-301763675.html.
3
https://www.theguardian.com/environment/2022/aug/19/top-us-business-lobby-group-climate-action-business-roundtable.
4
https://www.greenbiz.com/article/dont-play-both-sides-take-3-steps-now-fix-your-trade-group-gap.
5
https://www.wbur.org/hereandnow/2023/03/22/esg-investing-fossil-fuels.
6
https://www.exposedbycmd.org/2023/02/03/alec-expands-private-board-of-directors-with-woke-capitalism-fighters/.
2024 Proxy Statement 65
Proposal 1: Proposal 3:
Proxy Our Share Proposal 2: NEO Audit Proposal 4: Other
Election of Independent FAQs Appendix
Summary Company
Directors
Ownership Compensation Matters
Auditor Shareowner Proposal Information
Statement by Our Board of Directors Against Proposal 4
Our Board of Directors unanimously recommends a vote AGAINST this shareowner proposal. The Board reviewed Proposal 4 and,
for the following reasons, has determined that its approval would not be in the best interests of the company or our shareowners.
The Board believes it is in the best interests of our shareowners and other
stakeholders for Carrier to be an effective participant in the legislative and
regulatory process.
We are subject to extensive regulation at the federal, state and local levels. Legislative and regulatory initiatives across a broad
spectrum of policy areas often have significant effects on our business, employees, customers and the communities that we serve.
Carrier believes that participating in the legislative and regulatory process (including lobbying and maintaining memberships in trade
associations) benefits our shareowners and stakeholders, enhances shareholder value, and is an important part of responsible
corporate citizenship.
Carrier has already adopted effective policies and procedures related to its lobbying
activities and compliance. Further, these policies and procedures, and much of the
other information requested by the proposal, are publicly disclosed.
Because Carrier believes that participation in the legislative and regulatory process is important, the Board and management have
adopted and publicly disclosed detailed policies and procedures related to such activities, including the following:
▪ Policies and Procedures Governing Lobbying. Carrier's Corporate Policy Manual Sections 12 and 12A sets forth policies and
procedures that address, among other things, Carrier’s political and public policy advocacy, including lobbying activity. The
Corporate Policy Manual is already publicly available on the Carrier website at www.corporate.carrier.com under Corporate
Responsibility – Governance.
These corporate policies require that all lobbying (undertaken by Carrier employees or lobbyists on our behalf) must be pre-
approved by and coordinated with Carrier’s Office of Global Government Relations. All lobbying reports required to be filed for
federal or state lobbyists and any grassroots efforts are reviewed and approved in advance by Carrier’s Vice President – Global
Government Relations or his designee. These reports are publicly available. Written or oral testimony submitted to any legislative
or administrative bodies must also be pre-approved by Carrier’s Vice President of Global Government Relations and Chief Legal
Officer. Finally, our lobbying activities must also comply with our Code of Ethics, which is publicly available on the Carrier website
at www.corporate.carrier.com/ under Corporate Responsibility – Governance – Ethics and Compliance.
▪ Payments Used for Lobbying and Disbursements by Carrier PAC. Carrier publicly discloses federal lobbying expenditures at
https://disclosurespreview.house.gov. As required by law, we file quarterly reports that (i) disclose our lobbying expenditures, which
include dues paid to membership organizations and (ii) detail our lobbying activities. We report these expenditures based on the
Internal Revenue Code’s definition for such expenses, which is broader than what is required by federal law and the definition used
by some of our competitors, but which we believe is a more comprehensive disclosure. This may result in our lobbying
expenditures appearing larger than some of our competitors’ lobbying expenditures.
▪ Carrier files publicly available lobbying reports with state and local agencies as required by state and local law. Further,
contributions by Carrier’s political action committee ("Carrier PAC") are also disclosed on the Federal Election Commission’s
website available at www.fec.gov/data. Carrier PAC's contributions to candidates for U.S. federal and state/local office are subject
to the strict limits set out in Carrier’s Corporate Policy Manual. Carrier adheres to all applicable U.S. laws and regulations with
respect to the operation of the Carrier PAC. Additionally, Carrier's Corporate Policy Manual generally prohibits direct corporate
political contributions to federal, state and local candidates.
▪ Dues for Tax-Exempt, Lobbying Organizations. Carrier is a member of various trade organizations that engage in lobbying and
other political activities to advocate and protect Carrier, our industry and the customers who rely on our products and services.
Carrier is not a member of any organization dedicated to drafting model legislation, although we belong to groups that represent
the interests of their members and such groups' advocacy may result in the drafting of legislative language for specific purposes.
Our participation in trade associations is subject to management oversight and membership requires management approval
pursuant to the Government Relations Policy in our Corporate Policy Manual.
▪ Decision-Making and Oversight for Lobbying-Related Payments. Carrier’s decision-making and oversight process for
lobbying-related payments is already disclosed to Carrier’s shareholders. As described in our Board Governance Committee
Charter (which is available on our website at www.corporate.carrier.com under Corporate Responsibility – Governance), our
Governance Committee, composed solely of independent directors, assists the Board in overseeing Carrier’s government relations
and positions on significant public issues, including the Carrier PAC and political expenditures. The Governance Committee
reviews and discusses the Company’s political activities, including lobbying activities and expenditures. Our Office of Global
Government Relations, which is managed by our Vice President – Global Government Relations, oversees our lobbying activities.
66 Carrier Global Corporation
Proposal 1: Proposal 3:
Proxy Our Share Proposal 2: NEO Audit Proposal 4: Other
Election of Independent FAQs Appendix
Summary Company
Directors
Ownership Compensation Matters
Auditor Shareowner Proposal Information
The Board believes expanded disclosure would put Carrier at a competitive
disadvantage by adding unnecessary cost and revealing our strategies and priorities
in the legislative and regulatory process.
Any unilateral expanded disclosure could benefit parties with interests adverse to Carrier or those motivated by special or short-term
interests, to pressure us to alter our political participation in a manner that could harm the interests of Carrier and our shareowners.
Conclusion
In light of Carrier's existing robust disclosure of its policies, procedures, management and Board oversight of its political giving and
lobbying activities, we do not believe the benefits, if any, of additional disclosures as requested by the proponent, justify the costs and
risks to Carrier associated therewith. Any potential value provided by the requested additional disclosures does not merit the
resources required to provide the report requested by the proposal.
The Board unanimously recommends a vote AGAINST this shareowner
Proposal 4.
2024 Proxy Statement 67
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Information
Appendix
Directors Auditor Proposal
FREQUENTLY ASKED QUESTIONS
ABOUT THE ANNUAL MEETING
YOUR VOTE
Why Am I Being Provided with These Proxy Materials?
is important We are providing these proxy materials to you in connection with the solicitation by the Board of proxies to be
voted at our 2024 Annual Meeting of Shareowners and at any postponed or reconvened meeting.
When and Where Is the Annual Meeting?
The 2024 Annual Meeting will be held on April 18, 2024, at 8:30 a.m. Eastern time, in a virtual-only format.
Who Can Attend the Meeting and Vote?
Shareowners are eligible to attend the 2024 Annual Meeting of Shareowners and vote if they owned shares of Carrier common stock
at the close of business on February 27, 2024, which is referred to as the “record date."
May I Vote and Ask Questions In Advance of the Meeting?
Yes. Eligible shareowners may vote in advance of the Annual Meeting via internet and telephone until 11:59 p.m. Eastern time on
April 17, 2024, and via mail – please see page 70 for detailed instructions – and may submit questions in advance of the Annual
Meeting via internet at www.proxyvote.com until 11:59 p.m. Eastern time on April 17, 2024.
How May I Attend the Meeting?
Eligible shareowners will be able to attend the Annual Meeting virtually, but not in person, by accessing a live audio webcast via
internet at www.virtualshareholdermeeting.com/CARR2024. Once on that website, eligible shareowners will need to log in using the
control number on their proxy card, voting instruction form or notice regarding the availability of proxy materials. Eligible shareowners
may log in at www.virtualshareholdermeeting.com/CARR2024 beginning at 8:15 a.m. Eastern time on April 18, 2024.
How Can I Participate During the Meeting?
We have designed the virtual Annual Meeting to provide substantially the same opportunities to participate as shareowners would
have at an in-person meeting. Our virtual Annual Meeting will be conducted on the internet via live webcast. Shareowners will be able
to attend and participate online and submit questions during the Annual Meeting by visiting www.virtualshareholdermeeting.com/
CARR2024, as further described above.
The virtual Annual Meeting format allows shareowners to communicate with Carrier during the Annual Meeting so they can ask
questions of Carrier’s management and Board, as appropriate. If you wish to submit a question during the Annual Meeting, you may
do so by logging into the virtual meeting platform at www.virtualshareholdermeeting.com/CARR2024, clicking the Q&A button on your
screen and typing your question into the provided text field.
We reserve the right to exclude questions regarding topics that are not pertinent to meeting matters or company business or are
inappropriate. If we receive substantially similar questions, we may group such questions together and provide a single response to
avoid repetition. Any questions that are appropriate and pertinent to the Annual Meeting will be answered in the live Question and
Answer session during the Annual Meeting, subject to time constraints. Any such questions that cannot be answered during the
Annual Meeting due to time constraints will be posted and answered on our Investor Relations website, www.carrier.com, as soon as
practicable after the Annual Meeting.
Additional information regarding the ability of shareowners to ask questions during the Annual Meeting, related rules of
conduct, and other materials for the Annual Meeting will be available during the Annual Meeting at
www.virtualshareholdermeeting.com/CARR2024.
68 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Information
Appendix
Directors Auditor Proposal
Who can I contact if I have technical difficulties accessing or
participating in the Annual Meeting?
If you encounter any difficulties accessing the virtual Annual Meeting during the check-in or meeting time, please call the technical
support number that will be posted on the virtual meeting login page for assistance. Technical support will be available beginning
approximately 15 minutes prior to the start of the Annual Meeting through its conclusion. Additional information regarding matters
addressing technical and logistical issues, including technical support during the Annual Meeting, will be available at
www.virtualshareholdermeeting.com/CARR2024. The virtual Annual Meeting platform is fully supported across browsers (Chrome,
Edge, Firefox and Safari) and devices (desktops, laptops, tablets and cell phones) running the most updated version of applicable
software and plugins. You should ensure that you have a strong internet connection if you intend to attend and/or participate in the
Annual Meeting.
Does the Company Have a Policy Requiring That Directors Attend
Annual Meetings?
The company does not have a written policy requiring that directors attend the Annual Meeting, but directors are encouraged to do so
unless there is an unavoidable scheduling conflict. This year, while the company is not hosting an in-person meeting, directors are
similarly encouraged to participate unless they have a conflict. All of our directors at the time attended the 2023 Annual Meeting,
which was held virtually.
What is the Quorum Requirement for the Annual Meeting?
Under the company’s Bylaws, a quorum is required to transact business at the Annual Meeting. The owners of a majority of the
outstanding shares of Carrier common stock as of the record date, present either in person or by proxy and entitled to vote, will
constitute a quorum. As of the record date, 900,102,917 shares of Carrier common stock were issued and outstanding.
2024 Proxy Statement 69
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Information
Appendix
Directors Auditor Proposal
How Do I Vote?
Registered Shareowners
BY THE INTERNET VOTE BY MAIL
Before the meeting you can vote online at: You can mail the proxy card or voting instruction form enclosed
www.proxyvote.com. with your printed proxy materials. Mark, sign and date your
proxy card or voting instruction form, and return it in the prepaid
envelope we have provided or in an envelope addressed to:
Vote Processing
c/o Broadridge Financial Solutions
51 Mercedes Way
VOTE BY TELEPHONE Edgewood, NY 11717
In the United States or Canada, you can vote by using any
touch-tone telephone and calling the phone number shown on Please allow sufficient time for the delivery of your proxy card
your voting materials. Easy-to-follow voice prompts allow you to if you vote by mail.
vote your shares and confirm that your instructions have been
properly recorded.
Internet and telephone voting facilities will be available 24
hours a day until 11:59 p.m. Eastern time on April 17, 2024.
To authenticate your internet or telephone vote, you will need VOTE DURING THE ANNUAL MEETING
to enter your voter control number as shown on the voting During the meeting go to
materials you received. If you vote online or by telephone, you www.virtualshareholdermeeting.com/CARR2024 and log in
do not need to return a proxy card or voting instruction card. using your voter control number. See page 68 for more
information about the virtual meeting.
If you have already voted online, by telephone or by mail,
then your vote during the Annual Meeting will supersede your
earlier vote.
Beneficial Shareowners
If you own shares in street name through an account with a bank, brokerage firm or other intermediary, then your intermediary will
send you printed copies of the proxy materials or provide instructions on how to access proxy materials electronically. You are entitled
to direct the intermediary how to vote your shares by following the voting instructions that the intermediary provides to you.
Changing Your Vote
If you are a registered shareowner:
▪ If you voted by telephone or the internet, access the ▪ Write to the Carrier Corporate Secretary (see page 73 for
method you used and follow the instructions given for contact information) providing your name and account
revoking a proxy. information, but allow sufficient time for delivery.
▪ If you mailed a signed proxy card, mail a new proxy ▪ Vote during the virtual Annual Meeting.
card with a later date, which will override your earlier
proxy card.
If you are a beneficial shareowner, ask your bank, brokerage firm or other intermediary about how to revoke or change your
voting instructions.
70 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Information
Appendix
Directors Auditor Proposal
How Will My Shares Be Voted?
Each share of Carrier common stock is entitled to one vote. Your shares will be voted in accordance with your instructions. In
addition, if you have returned a signed proxy card or submitted voting instructions by telephone or the internet, the proxy holders –
who are the individuals identified on your proxy card – will have the discretion to vote your shares on any matters not identified in this
Proxy Statement that are brought to a vote at the Annual Meeting. Shareowners are not permitted to vote for a greater number of
persons for election as directors than the number of nominees named in this Proxy Statement.
If your shares are registered in your name and you sign and return a proxy card or vote by telephone or the internet but do not give
voting instructions on a particular matter, the proxy holders will be authorized to vote your shares on that matter in accordance with
the Board’s recommendation. If you hold your shares through an account with a broker and do not give voting instructions on a
matter, your broker is permitted under NYSE rules to vote your shares in its discretion only on Proposal 3 (Ratify Appointment of
Independent Auditor for 2024) and is required to withhold a vote on each of the other Proposals, resulting in a so-called “broker
non-vote.” The impact of abstentions and broker non-votes on the overall voting results is shown in the table below.
How Do Voting Abstentions and Broker Non-Votes Affect the
Voting Results?
VOTE REQUIRED FOR IMPACT OF IMPACT OF BROKER
MATTER APPROVAL ABSTENTIONS NON-VOTES
Election of Directors Votes FOR a nominee Not counted as votes cast. Not counted as votes cast.
must exceed 50% of the No impact on outcome. No impact on outcome.
votes cast.
Advisory Vote to Approve Named Executive Votes FOR the proposal Counted as shares Not counted as shares
Officer Compensation must exceed votes present, or represented by present, or represented by
AGAINST it. proxy and entitled to vote proxy and entitled to vote
on the matter. Impact is on the matter. No impact
same as a vote AGAINST. on outcome.
Ratify Appointment of Independent Auditor for 2024 Votes FOR the proposal Counted as shares Not applicable. There will
must exceed votes present, or represented by not be broker non-votes
AGAINST it. proxy and entitled to vote because brokers are
on the matter. Impact is permitted to vote your
same as a vote AGAINST. shares on this item in
their discretion.
Shareowner proposal regarding transparency in lobbying Votes FOR the proposal Counted as shares Not counted as shares
must exceed votes present, or represented by present, or represented by
AGAINST it. proxy and entitled to vote proxy and entitled to vote
on the matter. Impact is on the matter. No impact
same as a vote AGAINST. on outcome.
What Happens if a Director in an Uncontested Election Receives More
Votes “Against” Than “For” His or Her Election?
In an uncontested election of directors, any nominee for director who is an incumbent director and who receives a greater number
of votes cast “Against” than votes “For” his or her election must, under Carrier’s Corporate Governance Principles, promptly tender
his or her resignation to the Chair of the Governance Committee following certification of the shareowner vote. The Governance
Committee must promptly make a recommendation to the Board about whether to accept or reject the tendered resignation.
The director who tendered a resignation may not participate in the Governance Committee’s recommendation or the
Board’s consideration.
Under our Corporate Governance Principles, the Board must act on the Governance Committee’s recommendation no later than
90 days after the date of the shareowners’ meeting. Regardless of whether the Board accepts or rejects the resignation, Carrier must
promptly file a Report on Form 8-K with the SEC that explains the process by which the decision was reached and, if applicable, the
reasons for rejecting the tendered resignation.
If a director’s resignation is accepted, the Governance Committee also will recommend to the Board whether to fill the vacancy or to
reduce the size of the Board. Under Carrier’s Bylaws, a vacancy arising in these circumstances may be filled at the discretion of the
Board by a majority vote of the directors or at a special meeting of shareowners called by the Board.
2024 Proxy Statement 71
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Information
Appendix
Directors Auditor Proposal
Who Counts the Votes?
Broadridge Financial Solutions (“Broadridge”), an independent entity, will tabulate the votes. A representative of Broadridge will act as
the independent Inspector of Election for the Annual Meeting and in this capacity will supervise the voting and certify the results.
Broadridge has been instructed to keep the vote of each shareowner confidential, and the vote may not be disclosed except in legal
proceedings or for the purpose of soliciting shareowner votes in a contested proxy solicitation.
How May the Company Solicit My Proxy?
Employees of Carrier may solicit proxies on behalf of the Board by mail, email, in person and by telephone. These employees will not
receive any additional compensation for these activities. Carrier will bear the cost of soliciting proxies and will reimburse banks,
brokerage firms and other intermediaries for their reasonable out-of-pocket expenses for forwarding proxy materials to shareowners.
Carrier has retained Innisfree M&A Incorporated to assist in soliciting proxies for a fee of $25,000 plus expenses.
Why Did I Receive a Notice of Internet Availability?
To conserve natural resources and reduce costs, we are sending most shareowners a Notice of Internet Availability of Proxy Materials
(“Notice”), as permitted by SEC rules. The Notice explains how you can access Carrier’s proxy materials on the internet and, if you
prefer, how to obtain printed copies. The Notice also explains how you can choose print delivery of proxy materials for future
annual meetings.
How Can I Receive My Proxy Materials Electronically?
To conserve natural resources and reduce costs, we encourage shareowners to access their proxy materials electronically. If you are
a registered shareowner, you can sign up at www.computershare-na.com/green to get electronic access to proxy materials for future
meetings, rather than receiving them in the mail. Once you sign up, you will receive an email each year explaining how to access
Carrier’s Annual Report and Proxy Statement and how to vote online. Your enrollment for electronic access will remain in effect
unless you cancel it, which you can do up to two weeks before the record date for any future annual meeting.
If you are a beneficial shareowner, you may obtain electronic access to proxy materials by contacting your bank, brokerage firm or
other intermediary, or by contacting Broadridge at www.investordelivery.com.
What Materials Are Mailed to Me When I Share the Same Address as
Another Carrier Shareowner?
If you share an address with one or more other Carrier shareowners, you may have received only a single copy of the Annual
Report, Proxy Statement or Notice of Internet Availability of Proxy Materials for your entire household. This practice, known as
“householding,” is intended to reduce printing and mailing costs.
If you are a registered shareowner and you prefer to receive a separate Annual Report, Proxy Statement or Notice of Internet
Availability of Proxy Materials this year or in the future, or if you are receiving multiple copies at your address and would like to enroll
in “householding” and receive a single copy, please contact Computershare at 1-866-507-8028. Written requests may be sent to
Computershare Trust Company, N.A. by mail to P.O. Box 43006, Providence, RI 02940-3006 or by courier delivery to 150 Royall
Street, Suite 101, Canton, MA 02021. If you are a beneficial shareowner, please contact your bank, brokerage firm or other
intermediary to make your request. There is no charge for separate copies.
Will Any Other Business be Presented at the Annual Meeting?
As of the date of this Proxy Statement, the Board knows of no other matter that will be properly presented for shareowner action at
the Annual Meeting other than those matters discussed in this Proxy Statement. However, if any other matter requiring a vote of the
shareowners properly comes before the Annual Meeting, then the individuals acting under the proxies solicited by the Board will have
the discretion to vote on those matters for you.
72 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Information
Appendix
Directors Auditor Proposal
How Do I Submit Proposals and Nominations for the 2025
Annual Meeting?
Shareowner Proposals Included in the Proxy Statement
To submit a shareowner proposal to be considered for inclusion in Carrier’s Proxy Statement for the 2025 Annual Meeting under SEC
Rule 14a-8, you must send the proposal to our Corporate Secretary. The Corporate Secretary must receive the proposal in writing by
November 5, 2024.
Shareowner Proposals Introduced at the 2025 Annual Meeting
To introduce a proposal for vote at the 2025 Annual Meeting (other than a shareowner proposal included in the Proxy
Statement in accordance with SEC Rule 14a-8), Carrier’s Bylaws require that the shareowner send advance written notice to the
Carrier Corporate Secretary at the company's principal executive offices (at the address below) for receipt no earlier than
December 19, 2024, and no later than January 18, 2025. This notice must include the information specified by Section 1.9 of the
Bylaws, a copy of which is available on our website (see page 10).
Director Nominations Submitted for the 2025 Annual Meeting
Carrier’s Bylaws require that a shareowner who wishes to nominate a candidate for election as a director at the 2025 Annual Meeting
(other than pursuant to the “proxy access” provisions of Section 1.16 of the Bylaws) must send advance written notice to the Carrier
Corporate Secretary at the company's principal executive offices for receipt no earlier than December 19, 2024, and no later than
January 18, 2025. This notice must include the information, documents and agreements specified by Section 1.9 of the Bylaws,
a copy of which is available on our website (see page 10).
Director Nominations by Proxy Access
Carrier’s Bylaws require that an eligible shareowner who wishes to have a nominee of that shareowner included in Carrier’s proxy
materials for the 2025 Annual Meeting pursuant to the “proxy access” provisions of Section 1.16 of our Bylaws must send advance
written notice to the Carrier Corporate Secretary for receipt no earlier than October 6, 2024, and no later than November 5, 2024.
This notice must include the information, documents and agreements specified by Section 1.16 of the Bylaws, a copy of which is
available on our website (see page 10).
Solicitation of Proxies in Support of Non-Company Director Nominees
To comply with the universal proxy rules, shareowners who intend to solicit proxies in support of director nominees other than
the company's nominees must provide notice that sets forth the information required by SEC Rule 14a-19 no later than
February 17, 2025.
How Do I Contact the Corporate Secretary’s Office?
Shareowners may contact Carrier’s Corporate Secretary’s Office in one of the three methods shown below:
WRITE A LETTER SEND AN EMAIL CALL
Carrier Corporate Secretary corpsec@carrier.com 1-561-365-2335
Carrier Global Corporation
13995 Pasteur Boulevard
Palm Beach Gardens, FL 33418
Our Bylaws and other governance documents are available under the Corporate Responsibility section of the company’s website
(see page 10).
2024 Proxy Statement 73
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Other Information Appendix
Directors Auditor Proposal
OTHER IMPORTANT INFORMATION
Cautionary Note Concerning Factors That May Affect Future Results
This Proxy Statement contains statements which, to the extent they are not statements of historical or present fact, constitute
“forward-looking statements” under the securities laws. These forward-looking statements are intended to provide management’s
current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid.
Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,”
“prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “confident,” “scenario” and other
words of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements
may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share
repurchases, tax rates and other measures of financial performance or potential future plans, strategies or transactions of Carrier,
Carrier’s plans with respect to our indebtedness, statements with respect to current and future implications of corporate responsibility
and sustainability topics, research, development and anticipated technology developments, anticipated impacts of our products
including with respect to our customers’ goals relating to sustainability targets and otherwise, anticipated impacts of our portfolio
transformation, anticipated impacts of our compensation programs, secular and macroeconomic trends, and other statements that
are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to
differ materially from those expressed or implied in the forward-looking statements.
In addition, our 2023 Annual Report on Form 10-K includes important information as to risks, uncertainties and other factors that may
cause actual results to differ materially from those expressed or implied in the forward-looking statements. See the Notes to the
Consolidated Financial Statements in our 2023 Annual Report on Form 10-K under the heading “Note 23 – Commitments and
Contingent Liabilities,” the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” under the headings “Business Overview,” “Results of Operations,” “Liquidity and Financial Condition,” and “Critical
Accounting Estimates,” and the section entitled “Risk Factors.” Our 2023 Annual Report on Form 10-K also includes important
information as to these factors in the “Business” section under the headings “General,” “Other Matters Relating to Our Business as a
Whole,” and in the “Legal Proceedings” section. Any forward-looking statement speaks only as of the date on which it is made, and
Carrier assumes no obligation to update or revise any such statement, whether as a result of new information, future events or
otherwise, except as required by applicable law.
Corporate Governance Information, Our Code of Ethics and How to
Contact the Board
Carrier’s Corporate Governance Principles (and related documents), the charters for each committee, our Code of Ethics and
excerpts from our Corporate Policy Manual are available on Carrier’s website provided on page 10. Printed copies will be provided,
without charge, to any shareowner upon a request addressed to the Corporate Secretary through the contact information provided on
page 73.
Our Code of Ethics applies to all directors and employees, including the principal executive, and financial and accounting officers.
Shareowners and other interested persons may send communications to the Board, the Lead Independent Director or one or more
independent directors by: (i) using the contact information provided on the Corporate Responsibility section of Carrier’s website
(see page 10); (ii) letter addressed to the Carrier Corporate Secretary (see page 73 for contact information); or (iii) using Carrier’s
Anonymous Reporting program (contact information is available on Carrier's website provided on page 10). Communications relating
to Carrier’s accounting, internal controls, auditing matters or business practices will be reviewed by the Chief Compliance Officer and
reported to the Audit Committee pursuant to Carrier’s Corporate Governance Principles. All other communications will be reviewed by
the Corporate Secretary and reported to the Board, as appropriate, pursuant to our Corporate Governance Principles.
Transactions With Related Persons
Carrier has a written policy, which is available on our website (see page 10), for the review of transactions with related persons. The
Related Person Transactions Policy requires review, approval or ratification of transactions in which Carrier is a participant and in
which a Carrier director, executive officer, a beneficial owner of more than 5% of Carrier’s outstanding shares, or an immediate family
member of any of the foregoing persons has a direct or indirect material interest. Any such transaction must be reported for review by
the Corporate Secretary who will, in consultation with the company’s Chief Compliance Officer, assess whether the transaction is a
transaction with a related person, as that term is defined under Carrier’s policy. Following this review, the Board’s Governance
Committee will then determine whether the transaction can be approved or not, based on whether the transaction is determined to be
in, or not inconsistent with, the best interests of Carrier and its shareowners. In making this determination, the Governance
Committee takes into consideration, among other factors it deems appropriate, whether the transaction is on terms no less favorable
than terms generally available in transactions with unaffiliated third parties under the same or similar circumstances and the extent of
the related person’s interest in the transaction.
74 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs Other Information Appendix
Directors Auditor Proposal
Each director and executive officer completes and signs a questionnaire at the end of each fiscal year to confirm that there are no
material relationships or related person transactions between such individuals and Carrier other than those previously disclosed to
the company. This ensures that all material relationships and related person transactions are identified, reviewed and disclosed in
accordance with applicable policies, procedures and regulations.
Carrier’s policy generally permits the employment of relatives of related persons possessing the requisite skills and qualifications
consistent with Carrier’s policies and practices for employing a non-related person in similar circumstances, provided the employment
is approved by the Senior Vice President & Chief Human Resources Officer and the Chief Compliance Officer.
As previously disclosed, on January 2, 2024, we completed our acquisition of the VCS Business. Upon the completion of the
acquisition, Max Viessmann was appointed as a member of the Board. In light of Mr. Viessmann’s current service as Chief Executive
Officer and a member of the Executive Board of Viessmann Group, and the ownership by Mr. Viessmann, together with other
members of the Viessmann family, of a majority of the capital stock of Viessmann Group, Viessmann Group became a “related party”
of Carrier. Since the beginning of our last fiscal year until on or about February 20, 2024, the amount of our payments to Viessmann
Group in connection with the agreements described below have amounted to approximately $11.3 billion, excluding 58,608,959
shares of our common stock paid as partial consideration for the acquisition. In connection with the acquisition, Carrier has entered
into the following agreements with Viessmann Group:
Share Purchase Agreement pursuant to which we acquired the VCS Business, which was entered into on April 25, 2023, and which
contained certain closing conditions and termination rights, as well as customary representations, warranties and covenants and
which provides that, for specified time periods following the closing of the acquisition and subject to certain exceptions, certain
aspects of the VCS Business will be operated as they were at the time of the execution of the Share Purchase Agreement;
Investor Rights Agreement under which Viessmann Group has the right to nominate one member of our Board for a period of ten
years following the closing of the acquisition, has agreed to certain voting restrictions, and has customary standstill, lockup and
transfer restrictions, and customary resale, demand and piggyback registration rights;
License Agreement through which Viessmann Group has granted an exclusive, worldwide license to use the “Viessmann” trademarks
in connection with the Viessmann Group in exchange for an annual royalty of €12 million for the first five years of the term of the
License Agreement and royalties thereafter determined based on net sales of licensed products sold by us for the remainder of
the term;
Transitional Services Agreement under which each of Carrier and Viessmann Group will provide to the other on an interim,
transitional basis, various services for agreed-upon charges; and
Additional Agreements entered into, or that Carrier and Viessmann Group intend to enter into, including framework agreements,
lease agreements and a paying agent agreement providing for payments to certain Viessmann Group employees.
Incorporation by Reference
In connection with our discussion of director and executive compensation, we have incorporated by reference in this Proxy Statement
certain information from Note 14 – Stock-Based Compensation to the Consolidated Financial Statements in Carrier’s 2023 Annual
Report on Form 10-K filed with the SEC on February 6, 2024; these are the only portions of such filings that are incorporated by
reference in this Proxy Statement.
The company shall deliver, without charge, a copy of Carrier’s 2023 Annual Report on Form 10-K (excluding exhibits) to shareowners
who make a request to the Corporate Secretary through the contact information provided on page 73.
References in this Proxy Statement to our website or third party websites are for the convenience of readers, and information and
documents available at or through such websites are not incorporated by reference in this Proxy Statement.
Company Names, Trademarks and Trade Names
Carrier Global Corporation and its subsidiaries’ names, abbreviations thereof, logos, and product and service designators are all
either the registered or unregistered trademarks or trade names of Carrier Global Corporation and its subsidiaries. Names,
abbreviations of names, logos and products and service designators of other companies and organizations are either the registered
or unregistered trademarks or trade names of their respective owners. As used herein, the terms “we,” “us,” “our,” “the company” or
“Carrier,” unless the context otherwise requires, mean Carrier Global Corporation and its subsidiaries.
2024 Proxy Statement 75
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
APPENDIX A: RECONCILIATION
OF GAAP MEASURES TO
CORRESPONDING NON-GAAP
MEASURES
Operating Profit, Operating Margin and Earnings Per Share
(UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2023 FOR THE YEAR ENDED DECEMBER 31, 2022
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) REPORTED ADJUSTMENTS ADJUSTED REPORTED ADJUSTMENTS ADJUSTED
Net sales $22,098 $— $22,098 $20,421 $— $20,421
Operating profit 2,296 911 a 3,207 4,515 (1,621) a 2,894
Operating margin 10.4% 14.5% 22.1% 14.2%
Income from operations before income taxes 2,084 960 a,b 3,044 4,292 (1,649) a,b 2,643
Income tax expense (644) 20 c (624) (708) 135 c (573)
Income tax rate 30.9% 20.5% 16.5% 21.7%
Net income attributable to common shareowners $1,349 $980 $2,329 $3,534 ($1,514) $2,020
Summary of Adjustments:
Restructuring costs $97 a $31 a
Amortization of acquired intangibles 149 a 50 a
Acquisition step-up amortization (1) 41 a 51 a
Acquisition-related costs 220 a 31 a
Viessmann-related hedges 96 a —
Chubb gain — (1,105) a
TCC acquisition-related gain (2) 8 a (705) a
KFI deconsolidation 297 a —
Russia/Ukraine asset impairment — 4 a
Charge resulting from legal matter — 22 a
Debt extinguishment (gain), net (3) — (28) b
Bridge loan financing costs (4) 52 a, b —
Total adjustments $960 ($1,649)
Tax effect on adjustments above ($114) $172
Tax specific adjustments 134 (37)
Total tax adjustments $20 c $135 c
Shares outstanding - Diluted 853.0 853.0 861.2 861.2
Earnings per share – Diluted $1.58 $2.73 $4.10 $2.34
1
Amortization of the step-up to fair value of acquired inventory and backlog.
2
The carrying value of our previously held TCC equity investments were recognized at fair value and subsequently adjusted.
3
The company repurchased approximately $1.15 billion of aggregate principal senior notes on March 30, 2022, and recognized a net gain of $33 million and wrote-off
$5 million of unamortized deferred financing costs in Interest (expense) income, net.
4
Includes commitment fees recognized in Operating profit.
76 Carrier Global Corporation
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Free Cash Flow Reconciliation
(UNAUDITED)
FOR THE FOR THE
YEAR ENDED YEAR ENDED
DECEMBER 31, 2023 DECEMBER 31, 2022
(IN MILLIONS)
Net cash flows provided by operating activities $2,607 $1,743
Less: Capital expenditures 469 353
Free cash flow $2,138 $1,390
Reconciliation of 2023 Incentive Compensation Results
(UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2023
(IN MILLIONS) NET SALES OPERATING PROFIT FREE CASH FLOW
Adjusted financial results $22,098 $3,207 $2,138
Performance adjustments:
Constant currency (23) (12) (8)
Gain on Divestiture — (25) —
Performance adjusted results $22,075 $3,170 $2,130
Factors Contributing to Total % Change in Net Sales
(UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2023 vs. 2022
GENERAL
CORPORATE
EXPENSES AND
ELIMINATIONS
HVAC REFRIGERATION FIRE & SECURITY AND OTHER CONSOLIDATED
Organic 5% (2%) 6% —% 3%
FX Translation (1%) 1% (1%) —% —%
Acquisitions / Divestitures, net 9% (1%) (3%) —% 5%
Other —% —% —% —% —%
Total 13% (2%) 2% —% 8%
2024 Proxy Statement 77
Proposal 1: Proposal 3: Proposal 4:
Proxy Our Share Proposal 2: NEO Audit Other
Summary Company
Election of
Ownership Compensation Matters
Independent Shareowner FAQs
Information
Appendix
Directors Auditor Proposal
Use and Definitions of Non-GAAP Financial Measures
Carrier reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”).
We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The
non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as
substitutes for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the
usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial
statements and publicly filed reports in their entirety and not to rely on any single financial measure. A reconciliation of the non-GAAP
measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this Appendix. The tables
provide additional information as to the items and amounts that have been excluded from the adjusted measures.
Organic sales, adjusted operating profit, adjusted operating margin, adjusted net income, adjusted earnings per share (“EPS”) and
adjusted effective tax rate are non-GAAP financial measures.
Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions
and divestitures completed in the preceding 12 months and other significant items of a non-recurring and/or nonoperational nature
(hereinafter referred to as “other significant items”).
Adjusted operating profit represents operating profit (a GAAP measure), excluding restructuring costs, amortization of acquired
intangibles and other significant items. Adjusted operating margin represents adjusted operating profit as a percentage of net sales (a
GAAP measure). Adjusted net income represents net income attributable to common shareowners (a GAAP measure), excluding
restructuring costs, amortization of acquired intangibles and other significant items. Adjusted EPS represents diluted earnings per
share (a GAAP measure), excluding restructuring costs, amortization of acquired intangibles and other significant items. The adjusted
effective tax rate represents the effective tax rate (a GAAP measure), excluding restructuring costs, amortization of acquired
intangibles and other significant items. For the business segments, when applicable, adjustments of operating profit and operating
margins represent operating profit, excluding restructuring, amortization of acquired intangibles and other significant items.
Free cash flow is a non-GAAP financial measure that represents net cash flows provided by operating activities (a GAAP measure)
less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing
Carrier’s ability to fund its activities, including the financing of acquisitions, debt service, repurchases of Carrier’s common stock and
distribution of earnings to shareowners.
Sales, adjusted operating profit and free cash flow used to determine 2023 annual bonus payments (see "Compensation Discussion
and Analysis – Section III: 2023 CEO and NEO Compensation") are non-GAAP measures that are further adjusted for the impact of
acquisitions, divestitures, foreign exchange and other items to show changes in our financial results without giving effect to
period-to-period fluctuations due to the impact of acquisitions, divestitures, foreign currency exchange rates and other items not
included in our established targets.
Management believes that the non-GAAP measures described above are useful in providing period-to-period comparisons of the
results of the company’s ongoing operational performance.
When we provide our expectations for organic sales, adjusted operating profit, adjusted operating margin, adjusted effective tax rate,
adjusted EPS and free cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations
and the corresponding GAAP measures (expected net sales, operating profit, operating margin, effective tax rate, diluted EPS and
net cash flows provided by operating activities) generally is not available without unreasonable effort due to potentially high variability,
complexity and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as
unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, the impact and
timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance.
The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
78 Carrier Global Corporation
2024 Sustainability
and Impact Report
Introduction Environment Sustainable Innovation Social Governance Indices
At Carrier,
when we make changes,
it changes the world.
We are empowering our customers to meet their sustainability goals while
progressing toward ambitious goals of our own. We are helping meet the
challenges of climate change by strategically innovating to expand our
portfolio of solutions through electrification, integration and resilience.
We are continuously working to improve our employees’ experience and
investing in our communities. As a global climate leader, we are making a
positive impact on the industry we invented – and beyond – in ways that
no other company can, driving measurable and meaningful progress for
people, our planet and generations to come.
Carrier 2024 Sustainability and Impact Report 2
Introduction Environment Sustainable Innovation Social Governance Indices
Table of Contents About This Report
Introduction3 Social39 GRI 2-2, 2-4
About This Report���������������������������������������������������������� 3 Global Workforce������������������������������������������������������� 40 Carrier’s 2024 Sustainability and Impact Report covers performance for calendar
year 2023. Where relevant, we include information from 2024. The information and
A Message From Our Chairman Culture & Engagement���������������������������������������������� 41 data included in this report are based on the best available information and data at
& Chief Executive Officer������������������������������������������� 4 publication and are subject to change. In some cases, data is estimated.
Talent & Career Development������������������������������� 42
About Carrier������������������������������������������������������������������ 5
Inclusion������������������������������������������������������������������������� 45 In January 2022, Carrier sold our Chubb fire and security business. This report does not
Secular Trends Driving Growth �������������������������������� 8 include Chubb data for 2022 or 2023; however, Chubb is included in the data provided
Employee Well-Being����������������������������������������������� 48 for previous years.
Portfolio Transformation �������������������������������������������� 8
Health & Safety����������������������������������������������������������� 50
In July 2022, Carrier acquired Toshiba Carrier Corp., now known as Carrier Japan Corp.,
Carrier Sustainability & Impact Strategy�������������� 9
Corporate Social Responsibility��������������������������� 54 a long-standing joint venture between Carrier and Toshiba. Carrier Japan Corp. is a
global provider of residential and light commercial HVAC solutions, including variable
refrigerant flow and heat pump products. Data from Carrier Japan Corp. has been
Environment14 Governance57 integrated into Carrier’s reporting systems and is included in this report for the year
2023. Data from Carrier Japan Corp. is also included for 2022 Scope 1, 2 and 3 only.
Climate Change ���������������������������������������������������������� 15 Leadership ������������������������������������������������������������������� 58
In 2023, we announced the planned exits of our Fire & Security segment and
Water ����������������������������������������������������������������������������� 25 Enterprise Risk Management��������������������������������� 60 commercial refrigeration business over the course of 2024. This report includes data
for these businesses.
Waste����������������������������������������������������������������������������� 26 Environmental, Health & Safety Management���61
Human Rights ������������������������������������������������������������� 62 In January 2024, Carrier acquired Viessmann Climate Solutions. We anticipate
incorporating the data in disclosures for calendar year 2024.
Sustainable Responsible Supply Chains������������������������������������� 64
This report includes, where appropriate, references to Global Reporting Initiative (GRI)
Ethics & Compliance������������������������������������������������� 66
Innovation30 Government Relations��������������������������������������������� 68
Standards. We also use other recognized frameworks in this report, including the
Sustainability Accounting Standards Board (SASB) Standards and the Task Force on
Climate-related Financial Disclosures (TCFD).
Investing in Sustainable Innovation���������������������� 31 Corporate Policy Manual����������������������������������������� 70
Product Development Process����������������������������� 32
Product Responsibility��������������������������������������������� 37 Indices71
Data & Frameworks ��������������������������������������������������� 72
Carrier 2024 Sustainability and Impact Report 3
Introduction Environment Sustainable Innovation Social Governance Indices
I am pleased to share Carrier’s 2024 Sustainability Climate change will increase global energy Investing in our people and serving
and Impact Report, highlighting our progress and consumption as more people turn to HVAC our communities
commitments on our journey to becoming the systems for relief. We have both an obligation
Achieving our goals is only possible because
global leader in intelligent climate and energy and an opportunity to shape our world and
of the dedication and talent of our people.
solutions. Our world is rapidly changing, and we create a better future for generations to come.
We strive to be a catalyst for positive and
have made significant strides in the past year to One of the ways we will do so is by investing
sustainable change by inspiring and empowering
transform into a higher-growth, focused, pure- more than $4 billion by 2030 to develop
our people to innovate and always operate
play company. intelligent climate and energy solutions
with integrity. That is The Carrier Way.
that will reduce environmental impacts. We
Importantly, we continue to perform as we also set ambitious greenhouse gas emission
Our unwavering commitment to Carrier’s
transform, generating another year of consistent reduction goals that have been validated by
values and culture of excellence continues to
growth and margin expansion while providing the Science Based Targets initiative, including
yield significant results both inside and outside
innovative and sustainable end-to-end solutions a target to reach net-zero greenhouse gas
our company. In 2023, our engagement and
for our customers. emissions by 2050.
inclusion scores exceeded benchmark, we
continued to make progress on our journey to
Our 2024 report demonstrates the significant Innovating for tomorrow
progress we have made in areas critical to our have a workforce that reflects the communities
Sustainable innovation and technological in which we live and work, and we invested
portfolio transformation’s success:
differentiation form a core pillar of our research more than $10 million in charitable giving and
and development strategy. We have aligned matching gifts. Operating as one Carrier, we have
Reshaping our impact our ambitious net-zero goal to our business achieved meaningful outcomes that matter to our
With the acquisition of Viessmann Climate growth objectives. Since 2020, we have invested people, our communities and our planet.
Solutions, we now clearly offer a comprehensive approximately $1 billion of our $4 billion
and differentiated suite of sustainable climate commitment in sustainable research and This report highlights the great progress we
technologies and services. This uniquely development. We are creating responsive, have made against our bold goals. I invite you
positions us to play a critical role in addressing connected environments that lay the foundation to explore our report for a deeper dive into our
our customers’ sustainability goals. Powerful for systems to sense, think and act with plans, progress and exciting path forward. We
secular trends are changing the world’s energy
David Gitlin
unparalleled intelligence. Our leading solutions have achieved much, but there is still immense
requirements. Our innovative initiatives, including are designed to meet some of the most complex opportunity ahead. At Carrier, we are leading our
the transition to heat pumps and electrification climate and energy challenges in the world. industry by driving measurable results toward a
Chairman & Chief Executive Officer, Carrier of the cold chain, are just a few of the many sustainable future, which means a better tomorrow
examples of how we are looking to the future to One way we are driving exponential innovation for generations to come.
provide responsible solutions for our customers of is through our innovation incubators. In 2023,
“At Carrier, we are leading today and tomorrow. we opened four new innovation incubator
i3 Labs in the United States, India, China and
our industry by driving Japan, enabling our teams to develop disruptive
measurable results toward sustainable technologies that will advance
David Gitlin
our goals.
a sustainable future.” Chairman & Chief Executive Officer
Carrier
Carrier 2024 Sustainability and Impact Report 4
Introduction Environment Sustainable Innovation Social Governance Indices
About Carrier $22.1B
2023 Net sales
160+
Countries
~53,000
Employees in 2023
Carrier is a global leader in intelligent climate and energy
75+ 100+ 14,000+
solutions, with a diverse and world-class workforce. From the
beginning, we have led in inventing new technologies and
entirely new industries. Today, we continue to lead because we
keep customers at the center of every product and service we Brands New products Active patents
offer and we act quickly to exceed their expectations. Through for the 9th and pending patent
our performance-driven culture, we are creating long-term consecutive year applications worldwide
shareowner value by growing earnings and investing strategically
to strengthen our position in the markets we serve.
$617M
Research and
development
2023 Net Sales HVAC Net sales by region
$15.1B
Americas EMEA Asia Pacific
Breakdown
16% 58% 22% 20%
Net sales by business segment1
Refrigeration
17% $3.8B Net sales mix
67% Fire & Security
New equipment
76%
Parts & service
24%
$3.6B
1
Segment sales include intercompany sales. Read in conjunction with Form 10-K.
Carrier 2024 Sustainability and Impact Report 5
Introduction Environment Sustainable Innovation Social Governance Indices
The Carrier Way Leading People The Carrier Way
The Carrier Way is our foundation. It defines our vision, values and cultural behaviors that allow us to In 2023, we introduced Leading People The Carrier Way, an extension of The Carrier Way. It defines
create a workplace where we work and win, together, and always with a focus on delivering excellence, our Talent Philosophy, our guiding principles for how people leaders develop talent and build the best
the right way. We reinforce The Carrier Way across our company through ongoing communication and teams, and our Leader Success Model, which sets expectations for how people leaders lead others.
education on the behaviors that are critical to our success, such as having a passion for customers. It was developed with input from leaders across the company to support employee development and
set clear expectations for our leaders.
VISION VISION AV
IOR
S DEV
EL
O
OUR TALENT AV
IOR OUR LEADER
S OUR TALENT
DEV
EL
O
OUR L
PHILOSOPHY SUCCESS
PHILOSOPHY
MODEL SUCC
H
H
PM
PM
BE
BE
EN
EN
Our aspiration; why we come to work every day. Our aspiration; why we come to work every day.
T
T
BUILD BUILD
DIFFERENT
DIFFERENT
BEST BEST
ENCY
ENCY
climate
To be the global leader in intelligentTo be theand
global
energy
leader in intelligent climate and energy solutions.
solutions. TEAMS Our guiding principles for how TEAMS
Our expectations
Our guiding
for how principles for how Our expec
PAR
PAR
IAT
IAT
NS
NS
N
People Leaders develop talent N
lead others.
People
People TLeaders Leaders develop talent People Lea
RA
RA
IO
IO
T
PE PE
RFOR ANCE RFOR ANCE
M
and Build Best Teams. M
and Build Best Teams.
LEADING LEADING
We value BEHAVIORS while achieving results. Think
We value BEHAVIORS
“Outside In” while achieving results. Think “Outs
VALUES
THE VALUES We use the “what” and the “how” to assess performance
and potential. We role model The Carrier Way behaviors
and hold each other accountable to do the same.
Wemarket-leading
Seek
One
Know
use the “what” and
Carrier
and potential.
and and
always.
holdamaze
solutions.
the “how” to assess performance
We role model The Carrier Way behaviors
your customers.
each other accountable to do the same.
Seek market-l
One Carrier alw
Know and ama
PEOPLE PEOPLE
Our absolutes; always do the right thing. Our absolutes; always do the right thing.
ER CARRIER
Respect Integrity Innovation Integrity
Inclusion Respect Excellence
Inclusion Innovation Excellence We DEVELOP and help our people grow.
We support a culture of growth, valuing experiences and
cross-company movement to accelerate development.
We DEVELOP and help our people grow.
Define the Future Boldly
We support
Think
cross-company
Make
culture
big, takearisks, of growth,
inspire
change comfortable.
ideas. valuing experiences and
movement to accelerate development.
Define the F
Think big, take
Make change c
WAY
Employees own their development, with support from Employees
Try, own their development, with support from
learn, celebrate. Try, learn, cele
their leader. their leader.
CULTURE CULTURE THE THE We are TRANSPARENT and give
real-time feedback.
We discuss performance and potential, so all employees
We are TRANSPARENT and give
real-time
Generate
Connect
feedback.
Energy
people
We discuss to purpose, and
performance empower.
potential, so all employees
Generate En
Connect peopl
CARRIER CARRIER
Lead
caninclusively, ignite optimism. Lead inclusive
Our behaviors; how we work and win together, while
Ournever
behaviors;
compromising
how we work
our values.
and win together, while never compromising our values. can grow and succeed. Leaders and employees give and
Choose
grow and succeed.
mission over self
Leaders and employees give and
Choose missio
receive two-way feedback candidly and constructively. receive two-way feedback candidly and constructively.
Passion for Customers Achieve Results
Passion for Customers Achieve Results
We win when our customers win. We perform, with integrity.
We win when our customers win. We perform, with integrity. We PERFORM by setting stretch goals and We PERFORM by setting stretch goals and
WAY WAY
holding individuals and teams accountable. holding
Own individuals and teams accountable.
Outcomes Own Outcom
We coach for higher performance, raising the bar every Simplify,
We coachprioritize and focus.
for higher performance, raising the bar every Simplify, priori
Play to Win Dare to Disrupt
Play to Win Dare to Disrupt year, and take timely action. Anticipate,
year, andadjust, clearaction.
the path.
take timely
Make it happen, together.
Anticipate, adj
Make it happen
We strive to be #1 in everything we do. We innovate and pursue sustainable
We strive to be #1solutions.
in everything we do. We innovate and pursue sustainable solutions.
We DIFFERENTIATE based on contributions. We DIFFERENTIATE based on contributions.
Choose Speed Build Best Choose
Teams Speed Build Best Teams We recognize and reward both high performance and
high potential through differentiated investment,
We recognize and reward both high performance and
high potential through differentiated investment,
We focus and move with a bias for action. teams,
We develop diverse We and
focus empower
and a biasfaster.
to move
move with for action. We develop diverse teams, and empower to move faster. development, compensation and career progression. development, compensation and career progression.
Carrier 2024 Sustainability and Impact Report 6
Introduction Environment Sustainable Innovation Social Governance Indices
Carrier Excellence
Carrier Excellence is a continuous improvement mindset and operating system, focusing on Recognition
enhancing efficiency and productivity, and delivering high-quality outcomes across all facets of
Ranked No. 8 of Achieved
our business. It has evolved into an outcomes-driven model to help achieve company strategy.
100 Most Sustainable Companies Prime ESG Corporate Rating
The model is focused on the outcomes we want to achieve: to be our customers’ first choice, Barron’s, 2023 ISS ESG, 2023
put safety first, achieve perfect quality every time, deliver on time at the best cost and drive
Named to Achieved
productivity in all we do.
Carbon Clean200 ESG Leader Rating
Corporate Knights and As You Sow, 2023 MSCI ESG Ratings, 2023
arrier Excellence Awarded a Among
C Silver Medal
EcoVadis, 2023
America’s Most Responsible Companies
Newsweek, 2023
ri Opera
Kan ting
in Ca Among the Named an
osh de
World’s Best Employers ESG Industry Top-Rated Company
H nc
e Forbes, 2023 Sustainalytics, 2023
ment
l Align
a Da
Go il Among the Among the
Outcomes World’s Most Admired Companies World’s Best Companies
yM
Sta
an
Fortune, 2023 TIME, 2023
nda
age
Customers’ first choice
Digital
men
rdization
Safety first Among the
t
Perfect quality Best Places to Work for LGBTQ+ Equality
On-time delivery Human Rights Campaign Foundation
Corporate Equality Index, 2023-2024
Best cost
in g
in k
Pro
Th
ce
Pr
ob
ss
m
le m
ea
nt Solvi
Co
ro ng S
tr
ls e
lu
Va
D rivi n g C h a n g e
Carrier 2024 Sustainability and Impact Report 7
Introduction Environment Sustainable Innovation Social Governance Indices
Secular Trends Portfolio
Driving Growth Transformation
As a global leader in intelligent climate and energy solutions At Carrier, we are evolving to respond to the challenges of climate
for buildings and homes, and across the cold chain, Carrier change. On January 2, 2024, we completed the acquisition of
is uniquely positioned to lean into secular trends that are the climate solutions business of Viessmann Group. The addition
transforming our industry and the world. These trends include: positions Carrier as a digitally enabled, end-to-end sustainable
climate and energy solutions provider that addresses heating,
cooling, renewables, solar photovoltaic technology, battery storage
A Growing Energy Security and energy management needs for the home and office.
Middle Class and Stability
The combination enhances Carrier’s existing portfolio with
access to the iconic Viessmann brand, a leading provider of
highly efficient and renewable climate solutions with a more
Climate Change Digitalization
than 100-year record of innovation and sustainability and a
differentiated direct-to-installer channel model. In addition to our
2022 acquisition of Toshiba Carrier Corp., now known as Carrier
Carrier is addressing these challenges through breakthrough Japan Corp., Viessmann Climate Solutions’ 12,000 team members
innovation, electrification, energy-efficient solutions, the use of further strengthen Carrier’s position as a leading HVAC provider
refrigerants with lower global warming potential and connected globally, now positioning Carrier in the fast-growing residential
ecosystems to help mitigate climate change and enable the and light commercial space in Europe.
transition to clean energy.
The acquisition of Viessmann Climate Solutions, together with
the planned exits of our Fire & Security segment and commercial
refrigeration business, will transform Carrier into a more focused,
higher-growth business, further strengthening the company’s global
leadership position in intelligent climate and energy solutions.
Carrier 2024 Sustainability and Impact Report 8
Introduction Environment Sustainable Innovation Social Governance Indices
Carrier Sustainability Materiality Assessment
& Impact Strategy
GRI 3-1, 3-2, 3-3
Materiality Process
Carrier takes a transparent and data-driven approach to identifying what is important to our
business, stakeholders and the environment. It informs our products, operations, investments
GRI 2-6 and transformation toward becoming the leader in intelligent climate and energy solutions.
Our sustainability and impact strategy is founded on our materiality assessment and ongoing We conducted a materiality assessment to identify potential material topics based on industry
engagement with our stakeholders across our value chain. It is reinforced by our 2030 sustainability trends, best practice reporting frameworks and input from internal and external stakeholders.
and impact goals, associated policies and programs, and performance monitoring and improvement. This assessment considered our entire value chain, including upstream suppliers, downstream
The strategy is embedded into our corporate culture and is overseen at the highest level by our full customers and consumers, and our operations. The topics were prioritized based on their relevance
Board of Directors. Learn more about our sustainability governance and oversight. to Carrier, determined through key stakeholder engagement.
Material Topics
Upstream Carrier Downstream Environmental Products Social & Workforce Economic
Raw Material Sourcing Operations Customers • Climate • Innovation and • Stakeholder engagement • Ethics and
change efficiency compliance
Materials used by Carrier Our offices, manufacturing Dealers and distributors, • Talent attraction
to create our portfolio sites, research and design building owners and • Environmental • Product safety and retention • Corporate
of products facilities, and distribution operators responsibility and quality governance
• Occupational health
centers and safety • Tax transparency
• Cybersecurity
Inbound Transport Consumers and data
Outbound • Inclusion and diversity
and Logistics Commercial and privacy
Transportation of Transportation and industrial end users, • Human and labor rights
materials and products Product Installation and homeowners • Community engagement
to Carrier facilities Logistics and and investment
transportation associated Product End of Life
Vendors with the delivery of Carrier Disposal of products Sustainability topics are often linked to one another, and their interdependencies have been considered
Component suppliers and products to customers, and packaging, in our reporting and in the design of our programs.
other ancillary services and the installation, including recycling
service and repair of We are now in the process of conducting a Double Materiality Assessment in accordance with the
Carrier products European Union’s Corporate Sustainability Reporting Directive to evaluate the environmental and social
impacts as well as the financial materiality of sustainability topics for Carrier.
Carrier 2024 Sustainability and Impact Report 9
Introduction Environment Sustainable Innovation Social Governance Indices
Stakeholder Stakeholders Areas of Interest How We Engage
Customers and Consumers •
Quality of products and services • Customer meetings and materials • Product environmental declarations,
Engagement Purchasers of Carrier
products and services
•
Safety of products during installation
and in use
•
•
Carrier Voice of the Customer
Customer satisfaction surveys •
product labeling and certifications
Product and service training
•
Sustainability performance of • Dealer and distributor councils
• Customer sustainability surveys
GRI 2-25, 2-26, 2-28, 2-29, 3-3, 207-3, 413-1 products and services
• Digital solutions and aftermarket services
Shareowners and Investors • Financial performance • Investor meetings and materials
Carrier advances the long-term interests of • Risk management • Earnings releases
Individuals or organizations
our company and our shareowners by actively that invest in Carrier • Sustainability strategy • Sustainability disclosures
engaging our stakeholders. Apart from ongoing • Organizational transparency • Raters and rankers
direct engagement, stakeholders can contact Employees • Culture and engagement •
The Carrier Way and Leading People • Town halls
Carrier anonymously by phone or online through Individuals employed by Carrier • Inclusion The Carrier Way • Internal job sites
our Speak Up program or through various • Learning and career development • Career profiles •
Internal digital communications channels
• Talent management • Mentoring and facility bulletin boards
channels accessible via our corporate website. • Health and safety
• Pulse engagement surveys •
Confidential ethics and
• Environmental management
• Employment and benefits • Employee Resource Groups whistleblowing channels
• Ethics and compliance •
Performance Connections • Labor unions and work councils
• Labor relations conversations, including goal • Corporate and skill-specific training
alignment, development and feedback
Suppliers • Management and disclosure • Carrier Alliance program • Training sessions and webinars
of environmental, social and •
EcoVadis sustainability questionnaire • Annual Supplier Summit
Direct and indirect suppliers governance risks
•
Industry organizations • Supplier site visits
• Protection of workers’ human rights
•
National and local conferences
Local Communities •
Local employment and local •
Direct engagement through
Local residents, local governments, economic development local activities
community groups and charities •
Philanthropic activities, including •
Carrier’s Our Communities webpage
donations and volunteerism
• Educational opportunities
• Community outreach
Government •
Monitoring, advocacy and compliance with • Industry associations
federal, state and local laws and regulations • Direct engagement
Local, state and federal
governments and regulators • Industry engagement • Public-private partnerships
•
Tax policies and incentives • Input into rulemaking processes
Nonprofit Organizations and •
Contributions to climate action • Corporate dialogues and working groups
and other environmental topics • Direct discussions with organizations
Trade and Industry Associations
•
Social responsibility, including • Carrier’s Sustainability webpage
Organizations that function public health and food security
independently of governments • Carrier’s Our Communities webpage
•
Compliance with regulations,
codes and standards
Academia • Product innovation • Research studies
International academic institutions • Public health and well-being • Product development
that have subject matter expertise • Environmental sustainability • Recruiting and mentorship
in our areas of operation
Carrier 2024 Sustainability and Impact Report 10
Introduction Environment Sustainable Innovation Social Governance Indices
Planet Achieve net-zero greenhouse gas (GHG)
emissions across our value chain by 2050.
Avoid more than 1 gigaton of customer
greenhouse gas emissions.
Reduce absolute Scope 1 and 2 GHG Achieve carbon neutral operations.
emissions by 42% by 2030, from a
2021 baseline. Reduce energy intensity by 10% across
2030 Sustainability Reduce absolute Scope 3 GHG emissions
our operations.
and Impact Goals by 25% by 2030, from a 2021 baseline. Deploy water stewardship programs
across our global operations, prioritizing
Invest over $4B to develop intelligent water-scarce locations.
Carrier is charting a path to a more sustainable
climate and energy solutions that reduce
future. We amended our 2030 goals to reflect Divert more than 95% of operational waste
environmental impacts.
our portfolio transformation. from landfill disposal.
Our 2030 goals underscore Carrier’s
commitment to the things that matter and to
continuously challenge ourselves to think bigger
and to be better. Expanding on three decades
of environmental targets, our goals include People Exceed benchmark employee engagement. Foster the growth of Employee Resource
Groups to drive social impact.
measures to reduce impact on our planet,
and support our people and our communities Aspire to have an inclusive and diverse
through sustainable solutions, investments workforce that represents the communities Achieve world-class safety performance:
and practices. We strive to be a catalyst for in which we live and work. 0.25 total recordable incident rate and
positive and sustainable change as we innovate, 0.10 lost-time incident rate.
empower our people and operate with integrity.
That is The Carrier Way.
Carrier received validation of our near- and
long-term greenhouse gas emission-reduction
goals in line with the Science Based Targets
initiative to limit global warming to 1.5°C above
Communities Promote sustainability and positively
impact communities and our workforce
pre-industrial temperatures. In accordance through education, partnerships, programs
with this initiative, we unveiled our road map and volunteering our time and talent.
to achieve net-zero greenhouse gas emissions
across our value chain by 2050.
Carrier 2024 Sustainability and Impact Report 11
Introduction Environment Sustainable Innovation Social Governance Indices
2023 Highlights
Planet
367M+ 20% Maintained 80%+
metric tons of GHG emissions avoided decrease in GHG emissions for Scope 1 water withdrawal intensity compared of direct spend covered by
since 2020 by customers using our and 2 emissions relative to 20211 with 2021 sustainability screening in 2023
high-efficiency and lower global
warming potential refrigerant products
$965M+ 8% 14
invested in sustainable research and design reduction in energy consumption manufacturing sites achieved zero waste to
since 2020 compared with 2021 landfill certification since 2020
1
Using Scope 2 market-based accounting.
Carrier 2024 Sustainability and Impact Report 12
Introduction Environment Sustainable Innovation Social Governance Indices
People Communities
76 50+ ~12K ~200
engagement score and 74 inclusion score events held in 2023 by our six global employee volunteer hours logged in participants trained in 2023 through the
on our Pulse surveys in 2023, both above Employee Resource Groups with a focus 2023, exceeding our first-year volunteer new United Nations World Food Programme
benchmark1 on inclusion and allyship program goal Transport Training Centre, a collaboration
among Carrier, other leading companies
and the World Food Programme
32% 30% $2.4M+
global women executive population in 2023 decrease in recordable injuries compared contributed to colleges and universities in
with 2021 2023 in support of research, scholarships
and educational programs
50%
global executive diversity2 and 27%
U.S. People of Color professionals3
population in 2023
Scores represent the average of our three surveys for 2023. The benchmarks are global external benchmarks provided by Carrier’s third-party
1
engagement survey provider.
2
Global women and U.S. People of Color.
3
Includes directors, managers and professionals.
Carrier 2024 Sustainability and Impact Report 13
Introduction Environment Sustainable Innovation Social Governance Indices
Environment
We are committed to what matters – improving people’s Climate Change 15
lives and reducing our impact on the planet. We aim to Water 25
design, source, produce, market and deliver our products Waste 26
and services in an environmentally conscious and socially
responsible manner. Throughout our global operations, we
implement sustainable policies, processes and practices.
Carrier 2024 Sustainability and Impact Report 14
Introduction Environment Sustainable Innovation Social Governance Indices
Climate Change
GRI 3-3
A Vision for a
Sustainable Future
As the world recognizes the increasing urgency of climate change,
and secular trends continue to increase the demand for HVAC and
refrigeration products, Carrier is committed to aggressive actions
that minimize our environmental impact and help address the most Secular Trends Societal Needs Environmental Impact
critical challenge our planet has ever faced.
Through our road map to net zero, we are driving reductions in
greenhouse gas emissions across our value chain by 2050.
10%
of the 2.8 billion people
A Growing Middle Class living in the hottest parts of Global greenhouse gas
the world currently have AC¹ emissions originate from:
2X 21%
increased energy demand building energy
Climate Change for space cooling by 2050² consumption5
700M+ ~10%
people go to sleep hungry Food waste6
Energy Security and Stability every night³
¹ International Energy Agency.
² International Energy Agency.
475M
³ World Health Organization. tons of food can be saved annually
⁴ International Institute of Refrigeration. Digitalization with effective refrigeration⁴
5
UNEP Global Status Report for Buildings and Construction.
6
UNEP Food Waste Index Report 2024.
Carrier 2024 Sustainability and Impact Report 15
Introduction Environment Sustainable Innovation Social Governance Indices
Driving Sustainable Change Emission Sources in Carrier’s Value Chain
GRI 305-1, 305-2, 305-3
We are transforming to become the global leader in intelligent climate and energy solutions,
Greenhouse Gas Emissions
and strategically transforming our portfolio through electrification, integration and resilience.
GHG Upstream Operations Downstream
Protocol
Scope Scope 3 Scope 1 + Scope 2 Scope 3
Electrification
Sources • Purchased goods and services Scope 1 • Use of sold products
Reduce dependency on fossil fuels
• Capital goods • Stationary combustion • End-of-life treatment of
and provide sustainable comfort
• Fuel and energy-related • Mobile combustion sold products
solutions for our customers.
activities • Fugitive emissions
• Upstream transportation Scope 2
Integration and distribution
• Purchased electricity
• Operational waste
Offer complete energy management suite • Purchased steam
• Business travel
with efficient heat pumps, optimized battery
energy storage and smart connectivity.
Influence Incentivize and collaborate Implement and embed Innovate and disrupt
• Engage key suppliers on • Implement energy-efficiency • Develop low-carbon,
Resilience sustainability programs and solutions energy-efficient and fully
• Prioritize lower embodied • Eliminate fugitive refrigerant electric technologies
Drive sustainable energy use
carbon materials emissions • Support grid resilience
and grid resilience through through optimized battery
• Facilitate sustainable • Convert fleet to alternative-
autonomous solutions. employee commuting fuel vehicles storage and connectivity
• Reduce operational waste • Secure on-site and • Transition to lower global
purchased renewable energy warming potential (GWP)
• Optimize logistics
Our Greenhouse Gas Footprint
refrigerants
• Leverage virtual meetings
• Expand service and circular
when possible
economy business models
In 2023, we completed a greenhouse gas (GHG) emissions inventory, considering the GHG Protocol
Corporate Accounting and Reporting Standard, of our Scope 1, 2 and 3 emissions. Our Scope 3 Scope 1 <1%
emissions account for about 99% of our carbon footprint, with GHG emissions from our products in
use representing the majority. Scope 1 and Scope 2 each make up less than 1% of our carbon footprint. Scope 2 <1%
Learn more about our GHG emissions inventory. market-based
Scope 3 ~99%
Carrier 2024 Sustainability and Impact Report 16
Introduction Environment Sustainable Innovation Social Governance Indices
Our 2030 Climate
Commitments Road Map to Net Zero
Carrier is evolving our business to take on the challenges of climate change. During COP28, we unveiled our road map to achieve
Our Products net-zero greenhouse gas emissions across our value chain by 2050.
• Achieve net-zero greenhouse gas emissions across our value
3B
chain by 2050.
tons of CO2
• Reduce absolute Scope 3 GHG emissions by 25% by 2030, emissions
from a 2021 baseline.
resulting from our products
• Invest over $4B to develop intelligent climate and energy without any actions
solutions that reduce environmental impacts.
• Avoid more than 1 gigaton of customer greenhouse Gigaton goal In 2020, we set goals to help our
gas emissions. customers avoid more than 1 gigaton
& carbon
of greenhouse gas emissions and
neutrality achieve carbon neutral operations.
Our Operations But we have to be even bolder.
Greenhouse gas emissions
Road to meet 2050
• Achieve carbon neutral operations.
So we’re doing more. net-zero climate targets
• Reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030,
from a 2021 baseline.
We are establishing science-based targets in line
• Reduce energy intensity by 10% across our operations. with limiting global warming to 1.5°C and
committed to net-zero GHG emissions
45% 1. Electrification &
energy efficiency
Learn more about our 2030 sustainability and impact goals. SBTi across our value chain by 2050 –
net-zero and we have a road
map to get there.
35% 2. Digitally enabled &
energy solutions
path
15% 3. Refrigerants
5% 4. Sustainable
materials
NET-ZERO
2050
SBTi near-term absolute
2030
2020
2023
target percent reduction
GHG EMISSIONS
Carrier 2024 Sustainability and Impact Report 17
Introduction Environment Sustainable Innovation Social Governance Indices
Reducing Scope 3 Emissions We set an ambitious goal to help our customers avoid more
than 1 gigaton of GHG emissions from their carbon footprint by
From Products in Use
2030. Since 2020, our high-efficiency and lower GWP refrigerant
products have enabled customers to avoid more than 367 million
metric tons of GHG emissions, which is equal to the annual energy
GRI 305-5 use of nearly 48 million U.S. homes. Learn more about
our methodology and progress.
Our products, services and digital capabilities help customers
meet their energy, carbon and food-waste reduction goals, while Learn more about our sustainable investments.
reducing dependency on fossil fuels through electrification and use
of refrigerants with lower global warming potential. Energy-efficient Electrification & Energy Efficiency
heat pumps, all-electric refrigeration solutions and connected
GRI 302-2 l SASB RT-EE-410a.3
technologies are some of the ways we are improving efficiencies
in buildings, in homes and across the cold chain.
Through acquisitions and rigorous innovation, we are advancing
our portfolio of solutions focused on efficiency and electrification,
Our Scope 3 GHG emissions account for more than 99% of our
in support of the shift from fossil fuels to electric heating.
carbon footprint, with GHG emissions from our products in use
representing the majority. Our emissions from our products in use
We incorporate a sustainable design approach during the Product
were 458,248,000 metric tons of carbon dioxide equivalent (tCO2e)
Development Process. We design products that meet or exceed
in 2023.
energy-efficiency standards set by external standard-setting
bodies such as the American Society of Heating, Refrigerating
We are driving our net-zero strategy through:
and Air-Conditioning Engineers; the U.S. Environmental Protection
Agency’s ENERGY STAR program; and other standards set at the
1 Electrification & Energy Efficiency country, state and local level.
Delivering a portfolio of efficient products that minimize
customer energy use, fossil-fuel consumption and
greenhouse gas emissions, supporting net-zero ambitions.
2 Digitally Enabled & Energy Solutions
Integrating energy management and digital solutions
across our product portfolio to minimize carbon emissions
while building grid resiliency.
In Europe, Riello launched a range of heat pumps for
Carrier launched an all-electric temperature-controlled
3 Refrigerants refrigeration unit in Europe that is energy efficient and easy
residential properties that provide year-round comfort and
control. The solutions are energy-efficient alternatives
Using lower GWP refrigerants to reduce the GHG footprint to install. Compatible with most electric trucks, the new
to conventional wall-mounted gas boilers and use a
of our products while in use. Syberia eCool system delivers zero direct engine emissions
refrigerant with lower global warming potential than a
and ultra-low noise operation, meeting the latest regulations
4 Sustainable Materials for urban areas.
traditional refrigerant. The heat pumps feature quiet
operation and a slim profile for homes and apartments.
Designing products with materials that have lower
embodied carbon.
Carrier 2024 Sustainability and Impact Report 18
Introduction Environment Sustainable Innovation Social Governance Indices
Digitally Enabled & Energy Solutions EcoEnergy Insights, part of the Carrier portfolio and a leading
provider of AI- and IoT-enabled solutions and services, surpassed
Connected platforms, integrated solutions and value-added
5.8 billion kilowatt-hours of cumulative energy savings for clients
services are powering Carrier’s transition from an equipment
worldwide in 2024. This is equivalent to the amount of GHG
manufacturer to a provider of digitally enabled lifecycle solutions.
emissions from more than 960,0001 gasoline-powered passenger
We combine our hardware solutions with software, data and
vehicles driven for one year.
artificial intelligence (AI) to create smarter buildings and homes
and a more connected cold chain. Our innovative, cloud-based
EcoEnergy Insights was recognized as a Top Project of the Year
platforms make Carrier an integral part of customer ecosystems,
recipient at the 2023 Environment + Energy Leader Awards for
driving recurring revenue opportunities. Across all business
improving energy efficiency while enhancing occupant comfort
segments, insights from our connected devices help increase
and optimizing maintenance costs for JoAnn Inc., across 700
energy efficiency, optimize performance and implement solutions
stores. The customer achieved over 50 million kilowatt-hours of
before issues arise.
cumulative energy savings by leveraging the CORTIX platform
along with BluEdge Command Centers, composed of domain
experts and data scientists.
Carrier’s Abound suite of connected lifecycle solutions and
services provides visibility into building assets to help improve
energy efficiency, enhance occupant comfort and productivity, and
streamline compliance reporting. A new offering, Abound Net Zero
Management, tracks and reports energy and carbon performance
to help building owners and managers prioritize specific reduction
measures to meet their energy and sustainability goals.
In 2023, more than 100 building owners, facilities managers
and property developers joined Carrier commercial
Carrier’s Lynx digital ecosystem offers a suite of advanced
HVAC’s Act for Better Tomorrow seminar to discuss how
analytics solutions that provides customers with enhanced
to adopt sustainable energy solutions into daily operations
visibility, increased connectivity and actionable intelligence across
to achieve sustainability goals. Attendees from different
their cold chain operations. Lynx helps reduce loss and supports
sectors shared ongoing efforts in their net-zero journeys.
real-time decisions, ensuring foods and vital medications safely
Carrier showcased a range of innovative and successful
reach people around the world.
customer solutions, including product offerings, lifecycle
solutions and digital services.
1
U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator.
Carrier 2024 Sustainability and Impact Report 19
Introduction Environment Sustainable Innovation Social Governance Indices
• CO2 is Carrier’s preferred natural refrigerant solution for
transport refrigeration. A safe and non-ozone-depleting gas, Climate Equity & Resilience
CO2 has a GWP of 1 and good energy efficiency. Carrier has
pioneered the use of CO2 in applications such as supermarket Working with Our Customers & Communities
refrigeration and marine container refrigeration to sustainably Climate change amplifies disparities, particularly impacting
extend the world’s food supply. marginalized and vulnerable communities. It intensifies extreme
weather events, posing significant health risks, especially
• Residential, light commercial and chiller products are
for those lacking sufficient heating or cooling. Moreover, low-
being introduced into production in 2024 to meet the U.S.
income households disproportionately allocate a larger share
Environmental Protection Agency Technology Transition Rule
of their income to energy expenses. Prioritizing climate equity
of 700 GWP or less by the January 1, 2025, compliance date
through energy-efficient and affordable heating and cooling
for the United States.
solutions can alleviate these health risks and ensure accessibility
for all communities.
Carrier has identified R-454B, known commercially as
Refrigerants Puron Advance, as the primary lower GWP solution As part of our Climate Change Policy, Carrier is committed to
SASB RT-EE-440a.1, RT-IG-440a.1 to replace R-410A in our ducted residential and light promoting equity. We are focusing our efforts on environmental
commercial packaged solutions sold in North America. policies that advance the most efficient heating and cooling
Carrier focuses on delivering the right refrigerant for each We continue to lead sustainability efforts by phasing the technologies that are affordable and accessible for all consumers.
application. The right refrigerant varies by customer and refrigerant into residential systems complete with new
geography due to specific country or regional requirements. mitigation and reclamation components. Additionally, our Learn more about Carrier’s approach to climate risk.
Where technically feasible, we deliver natural or very low GWP industry-leading training programs opened for enrollment
refrigerant solutions (GWP <150) and evaluate options to expand as distributors and dealers ramp up for the changeover
our offering of ultra-low GWP solutions (GWP <30). Carrier has in products, navigating tough residential customer
products available today to meet the demand for lower GWP conversations and phasing out inventory.
solutions, including the sustainable, ultra-low GWP refrigerant
solutions of the CO2OLtec, NaturaLINE, PUREtec, AquaEdge and With a GWP of 466 – a 75% reduction from R-410A – and
AquaForce product families. non-ozone-depleting potential, Puron Advance refrigerant
was selected as the best solution to minimize environmental
• PUREtec hydrofluoroolefin (HFO) refrigerants such as impact and provide longevity based on the United Nations
R-1233zd(E) with a GWP of less than 1 are Carrier’s solution Montreal Protocol Kigali Agreement phasedown plan.
for centrifugal chillers used in HVAC globally. PUREtec HFO Carrier worked closely with regulators and research groups
refrigerants such as R-1234ze(E) are Carrier’s solution for screw to develop standards, codes and regulations that will help
chillers in Europe. HFO/hydrofluorocarbons (HFC) refrigerant ensure the safe use of R-454B.
blends like R-513A are alternative Carrier solutions for selected
centrifugal and screw chillers used in North America.
• We have identified R-32 as our primary lower GWP solution Sustainable Materials
to replace R-410A in scroll chillers. This is expected to result in Carrier is committed to designing and manufacturing products
an 80% reduction in the refrigerant GHG footprint relative to with materials that have lower embodied carbon. Learn more about
R-410A units. how we Design for Sustainability.
Carrier 2024 Sustainability and Impact Report 20
Introduction Environment Sustainable Innovation Social Governance Indices
Against the backdrop of the Inflation Reduction Act, which
provides Americans with access to $370 billion for clean energy Operational Greenhouse Gas Our Performance
& Energy Management
investments in the form of tax credits, incentives and rebates
to improve energy efficiency, we launched a Carrier EcoHome
Scope 1 & 2 Emissions (tCO2e)1
Program. Designed to help homeowners, home builders, and HVAC
dealers and contractors best utilize available long-term tax credits, GRI 305-1, 305-2, 305-4, 305-5
the program also helps consumers further maximize savings while
improving sustainability. Our Approach 203,379
Carrier’s greenhouse gas emission-reduction goals are in line 193,856 158,189
Carrier’s EcoHome Program features strategic financing options with the Science Based Targets initiative and include reducing
available only through Carrier’s network of experienced dealers. absolute Scope 1 and 2 GHG emissions by 42% by 2030, from a
For qualified buyers in 2023, the Carrier EcoHome Program 2021 baseline. Additionally, we aim to achieve carbon neutral 261,614
offered low-rate financing on eligible high-efficiency products 206,465 214,123
operations by 2030, building on our legacy of implementing
such as Carrier’s Infinity series air conditioners and heat pumps. targeted reduction programs across our global facilities. These
Additionally, consumers may qualify for up to $1,750 of additional two goals are associated with the GHG emissions from our
savings with Carrier’s Cool Cash seasonal program offered by operations that make up less than 1% of our total GHG emissions. 2021 2022 2023
most Carrier Factory Authorized Dealers. Eligible buyers have the
Scope 1
potential to increase system savings from $300 up to $3,750 or Our operational emissions are related to the energy used through
more on certain high-efficiency heat pump systems through a Scope 2 market-based
electricity and fuel to power our operations, including factories,
combination of Inflation Reduction Act incentives and Carrier’s offices, fleet vehicles and fugitive refrigerant emissions associated
Cool Cash offerings. with manufacturing. In 2023, our operational emissions decreased by 28,009 tCO2e2 (7%).
Our Scope 1 emissions decreased by 35,667 tCO2e (18%), with
In 2023, Carrier hosted a free webinar highlighting how resilient To progress toward our carbon neutrality operations goal, reduce 27,574 tCO2e directly attributed to emission-reduction projects.
buildings can protect indoor air quality and minimize health climate impact and drive operational efficiencies, our climate and Using market-based accounting, our Scope 2 indirect emissions
impacts caused by climate-related events. Carrier invited and energy strategy includes: increased by 7,658 tCO2e (3.7%) relative to 2022. In the United
hosted over 1,000 industry professionals, including building owners, States, we entered long-term contracts that will provide us with
operators, contractors, managers and engineers; provided the • Reducing overall energy consumption through energy- renewable energy certificates (RECs) to credit against 100% of our
latest scientific research on how best to protect indoor air quality efficiency programs and technologies. annual U.S. electricity consumption.
in buildings; and included actionable insights to help participants
• Reducing reliance on fossil fuels and increasing electrification.
create healthy and resilient indoor environments.
• Managing refrigerants effectively.
• Expanding renewable energy consumption.
This strategy is based on our Energy and Greenhouse Gas
Reduction standard practice and implemented by our
Environmental, Health & Safety (EH&S) and Operations teams.
1
Data reported in 2021 and 2022 was rebaselined and restated to align to Carrier's business portfolio
as of 12/31/23.
2
Using Scope 2 market-based accounting.
Carrier 2024 Sustainability and Impact Report 21
Introduction Environment Sustainable Innovation Social Governance Indices
Reducing Operational Emissions consumption and recognition for innovative ideas that promote Refrigerant Management
efficiency. By creating a culture that prioritizes and celebrates
GRI 302-4, 305-5 l SASB RT-EE-130a.1, RT-IG-130a.1
energy-conscious behavior, Carrier hopes to inspire employees Many refrigerants used in industrial and commercial cooling
We implemented an operational GHG emission-reduction to actively contribute to our sustainability and impact goals and systems are made of greenhouse gases that contribute to climate
strategy focused on addressing high-emissions activities empower them to make a positive difference. change when released to the atmosphere.
across our global footprint. To support this, each reporting site
is required to develop, implement and annually update an Reducing Scope 1 Emissions In 2023, Carrier reduced refrigerant leaks by 40% relative to the
previous year. Three sites across Carrier make up 90% of our total
Energy and Greenhouse Gas Reduction Plan. The plan:
Across Carrier manufacturing sites, our Scope 1 emissions are refrigerant emissions. By strategically focusing on these sites, we
largely attributed to fleet vehicles (38%), natural gas consumption
1 Documents energy consumption data and resulting
(30%) and refrigerants (26%). These sources make up over 90%
were able to reduce the consumption of R-410A. Projects included
a refrigerant recovery system at our Nanhai facility in China. We are
GHG emissions for the site. of our Scope 1 emissions, while other sources also include the also phasing out R-410A in various Carrier products.
2 Identifies significant energy users. combustion of fuels for stationary and mobile equipment and
vehicles in addition to other processes. Carrier’s 18% reduction in Fleet Emissions
Lists projects with an estimated investment, cost Scope 1 emissions in 2023 was achieved through ongoing focus on
3 savings, energy savings and payback, and associated refrigerant management, plant and equipment upgrades and fleet
decarbonization programs.
We continue to implement our fleet decarbonization plan,
focused on converting to hybrid vehicles, piloting electric
GHG reduction details.
vehicle fleets, implementing a global fleet-tracking program
and incorporating incentive programs to make the transition
We also established an internal capital expenditure fund targeted to alternative-fuel vehicles easier for our employees.
at reducing GHG emissions and overall energy consumption. Scope 1: Emission Sources (tCO2e)
The fund prioritizes capital-intensive programs that demonstrate Energy Efficiency & GHG Reductions
strong projected GHG reduction returns and potential cost savings,
identified through emissions modeling and financial analysis. We Carrier committed to reducing energy intensity by 10% across our
routinely monitor the performance of these programs through a operations by 2030, supporting our operational carbon neutrality
process involving key internal and external stakeholders in addition 53,423
51,850 goal. Energy-efficient facilities and processes are key to reducing
to third-party advisors and partners. our operational greenhouse gas emissions. We reduce energy
66,975
60,285 consumption through conservation and efficiency initiatives
In addition to capital-intensive programs and technology-based 55,962
tailored to specific facility conditions and energy use patterns.
solutions, Carrier educates employees on the importance of Informed by regular energy audits, our sites are required to review,
47,607
reducing emissions, encouraging sustainable practices and select and implement best management practices to achieve
the integration of emission-reduction initiatives into standard 69,092 68,175
energy and GHG emission reductions.
practices. Our Shut-It-Off program encourages employees 40,902
to reduce equipment energy use when not in operation. The 13,889 17,869 9,395 In 2023, we reduced our emissions from natural gas consumption
program includes employee education on energy conservation, 2021 2022 2023 by 15% relative to 2022 due to a range of capital investment
regular communication about the importance of reducing energy projects across key facilities.
Fleet vehicles
Natural gas consumption
Refrigerants
Other sources collectively represent less than 10% of Scope 1 emissions and include mobile and
1
stationary fuel combustion items, which account for less than 4% on an individual basis. Other sources1
Carrier 2024 Sustainability and Impact Report 22
Introduction Environment Sustainable Innovation Social Governance Indices
Renovation, Construction & Replacement • After successful pilots to address compressed air leakage Energy Management
points across our Monterrey, Mexico, campus, Carrier
Carrier is focused on developing sustainable building solutions to continued to work with an independent partner to find and GRI 302-1, 302-3, 302-4
enhance energy efficiency and help customers achieve tangible address compressed air leakage points across our facilities.
sustainability and cost-saving advantages. We view the design In 2023, we implemented the program at our Collierville, In 2023, our total energy consumption increased by 52,761 GJ (1.3%).
and specification stage of renovations, new construction and Tennessee, facility, resulting in a reduction of approximately Grid electricity use accounted for 52% of Carrier’s total energy
equipment purchases as a critical opportunity to maximize energy 156 tCO2e annually. Additionally, we installed a compressed consumption and 57% of our operational emissions.1 Our energy
efficiency and reduce GHG emissions. air controller to optimize usage, resulting in an additional intensity for 2023 was 192 GJ/million USD net sales.
525 tCO2e reduction annually. We also rolled out the program
Carrier’s own green building footprint includes several Leadership in Indianapolis, reducing approximately 80%-90% of
in Energy and Environmental Design (LEED)-certified office and
Energy Consumption (GJ)
compressed air leaks across the facility.
manufacturing facilities in our owned and leased portfolio,
featuring energy-efficient Carrier solutions. • Thermal degreasing in the brazing process contributes to
GHG emissions due to the energy required to heat parts
In addition to large-scale renovation and construction projects, and solvents. We began upgrading processes at one of our 2,309,111 1,988,758
our Management of Change process takes into consideration facilities in Monterrey, Mexico, in 2023 to operate at lower 2,044,095
the planning, modification and design of machines, products, temperatures. The process improvements are expected to
processes, operations and building layouts to determine their significantly reduce natural gas consumption and associated
potential effect on energy usage so that further energy and GHG emissions, and save space on the shop floor. In 2023, the
greenhouse gas reduction opportunities can be considered project helped the facility reduce natural gas consumption by 2,270,471 2,137,078 2,245,106
and realized. 26,170 gigajoules (GJ) (61%), the equivalent of 1,317 tCO2e.
• In 2023, as part of an internal initiative, we added Carrier’s
Operation & Maintenance Abound Net Zero Management to Carrier office buildings and 2021 2022 2023
manufacturing facilities across the United States to support
Regular equipment maintenance and optimization increases
the measurement, tracking and reporting of energy and GHG Fuel energy2
efficiency and reduces energy consumption and associated
performance. Learn more about Abound Net Zero Management. Electricity and purchased steam3
GHG emissions. Carrier’s Energy and Greenhouse Gas Reduction
standard requires that all critical energy-intensive equipment,
including HVAC, compressors, boilers, pumps, lighting systems,
production equipment and associated controls, be maintained
according to equipment manufacturer recommendations for
optimum performance.
1
Using Scope 2 market-based accounting.
2
Fuel energy includes propane, natural gas, butane, gasoline, diesel, distillate oil, oil #4, jet fuel, coal,
kerosene and acetylene.
3
The values include purchased electricity from the grid and purchased steam.
Carrier 2024 Sustainability and Impact Report 23
Introduction Environment Sustainable Innovation Social Governance Indices
Renewable Energy
SASB RT-EE-130a.1, RT-IG-130a.1 Providing Expert Energy Solutions
Our renewable energy strategy involves sourcing energy from renewable sources through methods In addition to Carrier providing energy-efficient products to customers, our NORESCO business
such as renewable energy certificates or power purchase agreements. Carrier is also pursuing on-site helps organizations drive a culture of energy efficiency. In tandem with a full range of decarbonization
renewable energy generation, using technology such as solar panels across our global manufacturing and electrification solutions, the Green Operations program helps customers create awareness and
and research and development centers where practical. These initiatives are designed to help us encourage adoption by other community stakeholders.
reduce greenhouse gas emissions, contribute to decarbonizing the electricity grid and improve our
own energy security. Skilled specialists, engineers and project managers develop and implement tailored programs featuring
building occupant energy education, outreach, project promotion, technical education, rollout support
Carrier became an early investor and limited partner in the Climate Asset Management – Nature and implementation of sustainability practices. Programs are tailored to respond to environmental,
Based Carbon Fund, targeting independently validated projects to reduce or avoid the release of GHG workforce and cultural needs.
emissions into the atmosphere. The projects focus on nature-based solutions in developing economies
that aim to deliver biodiversity improvements at scale for climate resilience and community benefits. Solutions include Energy Conservation Through Behavior Change, customized energy education and
awareness programs and STEAM curriculum enhancements.
Carrier Global Renewable Energy Projects
Facility/Provider Type 2023 Production (MWh)
Acciona Green Energy Developments Mixed Renewables 4,733
Beijing Power Exchange Center Wind Power 4,402
Chisholm View Wind Project II Wind Power 3,881
Day County Wind LLC Wind Power 116,157
Ensign Wind LLC Wind Power 13,962
Carrier 2024 Sustainability and Impact Report 24
Introduction Environment Sustainable Innovation Social Governance Indices
Water Our Performance
GRI 303-3
Reducing Our Water
Withdrawal & Impact
In 2023, Carrier’s total water withdrawal increased by 576 Through our water stewardship programs, Carrier prioritizes
GRI 303-1, 303-2, 303-3
megaliters (ML), an increase of 19% compared with 2022. Our data water security, addressing our own business resilience while also
analysis suggests that the increase in water withdrawals occurred considering the needs of local communities and ecosystems.
Our Approach predominately due to the 2022 acquisition of Toshiba Carrier Corp.,
now known as Carrier Japan Corp. Carrier’s EHSOS Manual governs our approach to water
Our 2030 water goal focuses on deploying water stewardship management and requires Carrier reporting sites to:
Our updated water risk assessment identified 13 locations that
programs across our global operations, prioritizing water-
are classified as high-risk for water stress. These sites collectively • Conduct a water balance to identify water sources associated
scarce locations.
withdrew nearly 286 ML of water, representing 8% of our total with processes and water discharges, taking into consideration
withdrawal. This marks a roughly 6% increase from the previous applicable legal requirements.
Carrier uses water across our facilities for potable use as well
year, attributed to changes in the World Resources Institute’s
as industrial purposes. The primary drivers of water withdrawals • Prioritize water consumption reduction and recycling projects
assessment of water-stressed sites for 2023 compared with 2022,
across our operations are heating, cooling, washing for based on water balance assessment and inspections.
as well as changes to our portfolio.
manufacturing and research and development purposes.
Water is also used by our employees for sanitary, canteen and • Collect data related to water consumption and discharges.
food preparation in addition to landscape irrigation. Carrier’s Operational Water Withdrawal & Intensity • Characterize water discharges in connection with permit
Environmental, Health & Safety Operating System (EHSOS) Manual requirements or benchmarks.
governs our approach to water management and outlines the
• Manage changes in operations that may impact water
requirements for our reporting sites to monitor water withdrawal
0.16 0.16 consumption, including equipment modifications, process
and implement programs where feasible. 0.15
alterations, introduction of new chemicals and changes
Our exposure to water risks varies by region and type of facility. to regulations.
3,313
Informed by the World Resources Institute Aqueduct Water Risk 3,139 2,753 • Develop and implement action plans and programs to reduce
Atlas tool, Carrier prioritizes water-stressed sites that score a water consumption.
3 or above in the “overall water stress” category, which takes into
consideration the physical risks of quantity and quality in addition Where opportunities exist to reduce our consumption, sites are
to other considerations. We assess and prioritize sites against 252 270 286 encouraged to implement best management practices, including
water risk criteria on an annual basis. At select sites, we treat water leak management, flow meters, low-flow fixtures, process water
for reuse within our industrial processes and sanitation. Carrier’s 2021 2022 2023 recycling and landscaping plans that minimize water use.
Water Pollution, Prevention and Control standard procedures
Water withdrawal – non-water-scarce sites (ML) Additionally, Carrier promotes a culture of water conservation
require that wastewater generated from a significant water source
must be identified and documented in addition to complying with Water withdrawal – water-scarce sites (ML) to support our water reduction goals by providing standard
applicable regulations covering the quantity of chemicals Water intensity (ML/million USD revenue) operating procedures, conducting training sessions, promoting
or materials under permit. best practices for efficient water use, providing visual reminders
and leveraging other internal communications.
We use a third-party software platform to monitor our water
purchases, withdrawals and compliance requirements monthly.
Carrier 2024 Sustainability and Impact Report 25
Introduction Environment Sustainable Innovation Social Governance Indices
Managing Water Quality
GRI 303-2
Providing Water Solutions
GRI 303-1
Waste
Where required, Carrier's water-consuming manufacturing facilities In addition to portfolio energy monitoring and building GRI 306-1, 306-2, 306-3, 306-4, 306-5 | SASB RT-EE-150a.1,
are equipped with wastewater treatment plants to ensure that assessments, we offer sustainability services through our RT-EE-150a.2
the quality of discharged water conforms to local regulations and NORESCO and Environmental Market Solutions Inc. (EMSI)
water permits. Our internal standard process on Water Pollution, businesses. They specialize in the development, design,
Prevention and Control requires sites to maintain comprehensive
records of the discharge treatment level.
construction and operation of energy and environmental
efficiency projects, including water efficiency and wastewater
Our Approach
treatment projects. Our 2030 sustainability and impact goals include diverting more
All Carrier sites are responsible for managing and monitoring
than 95% of operational waste from landfill disposal.
both treated and untreated wastewater discharges or effluents EMSI provides a series of sustainable technical consulting
in accordance with local regulations. We comply with applicable services for more sustainable, healthier buildings for real estate The waste that Carrier generates in our operations is a result of
water quality regulations and permits and licenses pertaining to developers, organizations and manufacturers in Greater China, industrial and production processes. The primary categories of
water withdrawals and effluent discharges. Northeast Asia and Southeast Asia. EMSI offers stormwater waste produced include metal, wood pallets, plastic, paper, glass
risk management and water efficiency management, finding and cardboard, along with packaging and food waste in our offices.
innovative ways to use rainwater as a resource and drive As of year-end 2023, we recycled more than 54,000 metric tons
In 2023, Carrier embarked on a project to modernize the water-system efficiencies. (87%) of our industrial waste. More than 95% of Carrier’s generated
existing industrial wastewater pretreatment systems at a
solid waste is nonhazardous.
manufacturing facility in Gurgaon, India. The new system
is designed to avoid the addition of individual wastewater In 2023, EMSI provided building water efficiency and Carrier’s EHSOS Manual and Waste Management & Control
chemicals, including harsh acids or bases. The avoidance sustainability design consulting services to INDIGO, a large standard process governs our approach to waste and outlines the
of certain chemicals, such as strong acids, or bases to commercial complex in Beijing. The project aimed to reduce requirements for our reporting sites and field operations to collect
control parameters, such as pH, better supports the safety reliance on municipal water. EMSI analyzed the utilization of waste generation and disposal data and reduce waste generation
of our plant personnel and yields less risk for other potential alternative water sources such as grey and rainwater systems and waste sent to landfills.
issues. Other benefits of the pretreatment system include and looked at ways to increase outdoor water conservation
floor area space savings, an overall cost reduction, less and landscape design, using native vegetation and efficient
maintenance and the addition of electronically monitored/ irrigation technologies to minimize water consumption.
controlled fail-safe mechanisms that help prevent the The optimized landscape design is expected to help:
discharge of wastewater that is outside of permitted
chemical specifications. • Reduce outdoor irrigation water use.
• Increase green space and open space.
• Reduce heat island effect.
• Reduce rainwater runoff.
• Indirectly reduce building energy consumption.
Carrier 2024 Sustainability and Impact Report 26
Introduction Environment Sustainable Innovation Social Governance Indices
Operational Waste Generation,
Management & Intensity
Our Performance • Establishes waste reduction plans, including engineering
and management controls, waste storage and management
options, transportation, and risk and emergency plans.
GRI 306-3, 306-4, 306-5
1,123 • Outlines program maintenance requirements, including
1,095 In 2023, Carrier reduced overall waste generation by 9,488
1,215 the introduction of new or modified equipment and
7,009 1,240
1,169 metric tons (13%) compared with the previous year. This included process changes.
6,543
1,521 a non-hazardous waste reduction of 9,912 metric tons (14%).
6,872
3.69 Our hazardous waste generation increased by 423 metric tons Additionally, our manufacturing facilities are required to implement
3.30 (18%) and our hazardous waste diversion rate increased from best management practices to understand and reduce sources of
2.85 52% to 55%. These changes in waste generation were primarily waste, including:
due to portfolio transformation, while improvements in diversion
rates resulted from our waste programs. • Installing waste storage in appropriate locations with signage
59,236 63,214 53,439
and employee training.
Reducing Our •
•
Recycling metal waste and nonmetal commodities.
Implementing a formal coolant management program.
Waste Generation
2021 2022 2023
• Investigating and characterizing all acid/alkali waste streams.
Hazardous waste (metric tons)
• Identifying characteristics, sources and amounts of unique
Disposal GRI 306-2 and/or small-volume waste.
Diverted
Carrier’s approach to waste management involves developing Learn more about how Carrier’s Design for Sustainability approach
Nonhazardous waste (metric tons)
strategic site plans that take into consideration the operations of takes into consideration the selection of materials in our products.
Disposal
our facilities and the type of waste generated in addition to the
Diverted local waste management, including available infrastructure and
Waste intensity (tons/million USD)
Recycling, Reuse & Circularity
facilities. Additionally, Carrier facilities are required to implement
best management practices in accordance with our Waste Carrier collaborates with suppliers to reuse packaging and
Management & Control standard process. optimize our production processes. We also recycle and recover
useful materials produced from manufacturing. We treat
Operational Waste Diversion Rate Select facilities meeting designated waste-related risk criteria are waste that cannot be avoided, reused or recycled to reduce
required to have a documented program that: environmental impact. The remaining waste, dependent on its
2021 2022 2023 contents and in compliance with local regulations, is sent for
• Meets Carrier’s minimum operating requirements, which cover off-site disposal or energy recovery.
Nonhazardous 90% 90% 89% requirements around waste discharge, storage and secondary
containment, and on-site disposal, for example.
Hazardous 52% 52% 55%
• Identifies waste sources, including listing, characterizing,
quantifying and reporting on waste sources on a quarterly basis.
Carrier 2024 Sustainability and Impact Report 27
Introduction Environment Sustainable Innovation Social Governance Indices
Hazardous Waste Management Carrier added an electrification dashboard to the Lynx Fleet digital platform, helping fleet owners in
Hazardous waste is less than 5% of the total waste generated at Carrier; however, it can pose potential Europe manage the transition to electric refrigeration technology. The dashboard provides insight into
risks to the environment and requires increased regulatory oversight and added treatment costs. the state of battery charge, tracks carbon dioxide emissions avoided, supports compliance with the
Hazardous waste from Carrier processes includes flammable liquids and solids, such as methanol; latest cold chain regulations and helps customers monitor progress toward their sustainability goals.
remediation waste soils and water; and waste acids, such as nitric or phosphoric.
Our efforts to expand the global cold chain extend into local communities and support economic
growth. In India, for example, Carrier provided refrigerated trucks that were distributed to fish farmers
Training & Employee Engagement
to help export produce to a growing group of local and neighboring markets.
Carrier employees must receive initial and periodic training appropriate to their job responsibilities
that enables them to manage waste in a manner that minimizes risks to themselves, other employees,
the public and the environment. The training also helps ensure compliance with local regulations and
Connected Cold Chain
Carrier's Waste Management & Control standard process.
Training and communications on waste management initiatives and compliance requirements are
also held across the year during on-site facility Toolbox Talks and digital communications via our
EHS Moment.
AWS MACHINE AWS IoT AWS ANALYTICS
LEARNING
Carrier’s Monterrey, Mexico, facility hosted “Green Week,” an event featuring various displays and
environmental-themed educational sessions for both operational and administrative employees
of the plant. Carrier also organized a cleanup day in a local neighborhood. This event reinforced Container
waste collection and classification. During this activity, 80 members of the campuswide Green
Team collected nearly 3 tons of waste in the area.
Truck
Trailer
Providing Waste Solutions Growers &
Manufacturers
Distribution
Center
Road, Rail
Reducing Food Waste Through Connected Cold Chain Solutions & Air
Carrier protects and extends the supply of food, medicine and other perishable goods around the world. Local
Our electric and digital solutions improve cold chain connectivity, sustainability and effectiveness. Delivery/
Last Mile
We continue to be a leader in the global dialogue around how reliable transport and preservation can
reduce food waste and help mitigate climate change.
We expanded our Lynx Fleet digital offering to provide comprehensive monitoring capabilities for
refrigerated trucks and trailers in China and India. The intelligent solution improves visibility throughout
the cold chain to improve fleet uptime and asset health management and drive operational efficiencies.
Carrier 2024 Sustainability and Impact Report 28
Introduction Environment Sustainable Innovation Social Governance Indices
Circular Business Models
GRI 306-2 As a Service
Carrier has developed programs to support the reduction of Carrier’s Cooling-as-a-Service is a portfolio of innovative solutions to help commercial customers simplify the operation of HVAC
waste generation of our products, including the transition toward and other thermal or electricity-generating systems while meeting the challenges of the modern energy transition.
circularity, recognizing the importance of maximizing resource
efficiency. By promoting practices such as equipment reuse,
responsible takeback programs and recycling, Carrier aims to help
minimize environmental impact, conserve resources and promote End of Useful Life Management
a more sustainable approach to product lifecycle management.
These initiatives aim to reduce the need for new materials and to Carrier helps customers with their end of useful life refrigerant management, supporting their environmental strategies.
contribute to the circular economy by keeping resources in use Our BluEdge service offering includes responsible refrigerant management, with reclamation and decommissioning processes
for as long as possible, thereby minimizing additional resource in place. Appropriate refrigerant management helps to avoid the escape of these chemicals into the environment. Carrier offers
extraction and associated energy needs. refrigerant conversion to retrofit existing equipment with alternative refrigerants that are readily available, cost effective and
environmentally preferred.
Product Takeback
The Sensitech Device Takeback Program promotes the return of time and temperature data collection instruments for renewal and
reuse to keep them out of landfills and reduce resource and energy consumption from the development of new sensors. Sensitech
provides customers with tailored support to return used products that are then subjected to a validated renewal process before being
restocked for sale. In 2023, we observed return rates of up to 80% from secondary customers. Since 2021, Sensitech has reclaimed
over 8.5 million devices.
Recyclability
Carrier was awarded recyclability accreditation for the PrimeLINE and NaturaLINE refrigeration units by Underwriters Laboratories Inc.
(UL). These units are the only transport container refrigeration units in the industry to achieve this prestigious sustainability validation.
This accreditation validates the recyclability of PrimeLINE and NaturaLINE refrigeration units at 93% and 95%, respectively, per UL
Environmental Claim Validation Procedure 2789.
Carrier 2024 Sustainability and Impact Report 29
Introduction Environment Sustainable Innovation Social Governance Indices
Sustainable
Innovation
Carrier develops intelligent climate and energy solutions Investing in Sustainable Innovation 31
that support our commitment to achieving net-zero Product Development Process 32
greenhouse gas emissions across our value chain by 2050. Product Responsibility 37
Our comprehensive offerings help customers reach and
exceed their goals and stay ahead of regulatory changes.
Carrier 2024 Sustainability and Impact Report 30
Introduction Environment Sustainable Innovation Social Governance Indices
Investing in Carrier Ventures
Sustainable
Our global venture capital group, Carrier Ventures, expanded
its portfolio of strategic partnerships with high-growth
companies to accelerate the development of sustainable
Innovation
innovations and disruptive technologies for building and
cold chain net-zero solutions.
Sustainable We focus on growth areas of electrification,
Innovations energy management, and residential and
GRI 3-3 | SASB RT-EE-410a.3 light commercial HVAC technologies.
Our key strategic innovation and technology focus supports
Carrier’s transformation toward becoming the global leader in
intelligent climate and energy solutions.
Strategic We value strategic partnerships that enhance
Collaboration our research and development expertise and
our channel to market or that become a part
By 2030, we have committed to invest over $4 billion to develop
of our product offerings.
intelligent climate and energy solutions that reduce environmental
impacts, up from our original commitment of $2 billion. We have
also increased our overall annual investment in research and
Innovation Incubators
development, investing more than $2 billion in the last four years. Disruptive We prioritize software, analytics
Carrier innovates through collaboration. In 2023, we opened four
additional i3 Labs in the United States, India, China and Japan. Technologies and telematics.
The innovation incubators are creative spaces where we ignite
$965M+ 100+ the development of disruptive technologies and empower our
teams to test and develop solutions quickly, choosing speed to
Commitment
to Excellence
We seek out companies that share our
core values of respect, integrity, inclusion,
invested in sustainable new products for the deliver differentiated customer solutions. The labs are collectively
innovation and excellence.
research and design 9th consecutive year led by the Digital, Engineering, Business Development and
since 2020 Strategy teams.
14,000+ ~45%
active patents and of HVAC and
pending patent Transportation
applications worldwide Refrigeration revenue
was clean technology
Carrier 2024 Sustainability and Impact Report 31
Introduction Environment Sustainable Innovation Social Governance Indices
Product Development
Process
We are strategically transforming our portfolio through electrification, integration
and resilience. We align our product development strategy based on evolving
demands of the market and the rapidly evolving regulatory environment. Sustainability
considerations are woven into every stage of our product development process,
from design and supplier sourcing strategy to manufacturing and product release.
Our emphasis is on product safety, security, quality, environmental performance and
resource efficiency.
Design plays a critical role in determining the environmental and social impact of our
products and solutions. Our design process relies on a thorough understanding of our
customers and the use, performance and longevity of our products. We design with
the product lifecycle in mind. We also continuously improve our tools and develop
advanced methods to design sustainable products and reduce time to market. We
pursue new capabilities to create solutions that reduce the environmental footprint of
our products while supporting the health, safety and well-being of our customers and
building occupants.
The Product Development Process (PDP 2.0) serves as a catalyst to improve our
approach to product development and focuses on:
• Empowered and engaged teams.
• Faster time to market.
As part of Carrier’s commitment
• Improved customer satisfaction.
to operational excellence
• Greater flexibility. and efficiency, and informed
• Increased collaboration. by customer feedback, we
launched a revised Product
Development Process in 2023.
Carrier 2024 Sustainability and Impact Report 32
Introduction Environment Sustainable Innovation Social Governance Indices
Carrier’s Product Development Process
Marketing
Engineering
Assess Determine Develop Manufacture Release
Quality
easibility
F Requirements Product and Pilot to Market
Safety
and Plan
Security
Supply Chain
Operations
Sustainability Considerations in Our Product Development Process
Marketing Quality Supply Chain
• Conduct market research and understand regulatory trends • Develop a quality plan • Develop supplier sourcing strategy
• Incorporate the voice of the customer into product design • Develop a production control plan • Screen new and existing suppliers against
s ustainability criteria
• Design package and labeling to suit product and regulations • Conduct quality testing
• Complete a materials management plan to
• Develop literature and launch product
determine production and logistics requirements
Safety
Engineering • Incorporate safety considerations into product design
Operations
• Conduct a lifecycle analysis to identify opportunities to make • Review potential product safety hazards
s ustainable improvements • Create a change management plan to control environment,
• Test for regulatory compliance and to achieve certification health and safety risks
• Incorporate Design for Sustainability standards in
roduct design
p • Create and implement a plan for every part to manage
Security material flow and reduce waste
• Plan for environmental compliance
• Determine security requirements
• Monitor the ongoing performance of products with
• Integrate cybersecurity controls and test product security
service contracts
Carrier 2024 Sustainability and Impact Report 33
Introduction Environment Sustainable Innovation Social Governance Indices
Market Research & Customer Engagement & Feedback
We listen to the voice of the customer and integrate their feedback
Lifecycle Solutions
Our digitally enabled solutions, such as Abound and Lynx, support
Regulatory Trends into our Product Development Process. We engage closely with
our customers during the conceptual design phase to capture
customers across the entire product lifecycle. Our comprehensive
aftermarket offerings include remote monitoring and diagnostics,
Carrier conducts market research to identify key trends, market comprehensive product specifications. Within this phase, the predictive maintenance, spare parts, repairs, modifications and
gaps and opportunities where we can bring future value for our Carrier team evaluates technical and manufacturing prerequisites, upgrades, rentals and other cutting-edge digital services.
customers. We take into consideration the evolving regulatory while also considering environmental and social factors.
landscape and the growing ambitions and needs of our For the third consecutive year, Carrier achieved
We have a simplified and standardized approach to managing
customers. Our market research includes engaging directly
customer feedback using the Net Promoter Score survey, which double-digit aftermarket growth in 2023.
with our customers, using third-party feedback providers, and
asks customers how likely they are to recommend our brands.
participating in strategic memberships and associations. Carrier’s BluEdge service program is our best-in-class service and
Real-time responses lead to powerful and actionable insights,
aftermarket offering. It uses analytics to decipher data, extract
helping us identify customer needs while reinforcing behaviors that
Passion for Customers
insights and implement solutions before issues arise.
help turn customers into advocates of our products and services.
Feedback is visible to employees who receive training and tools
to help understand the voice of the customer. Customer service
Sustainability Services
GRI 2-29
surveys have allowed us to identify and engage with thousands In addition to our product portfolio, Carrier provides a broad array
of customers, greatly improving the customer experience. of related building services, including audit, design, installation,
In The Carrier Way, Passion for Customers is included as a cultural
system integration, repair, maintenance and monitoring. This
behavior because we win when our customers win. We maximize
As part of this process and technology investment, our Centers includes portfolio energy monitoring and building assessments
long-term value for our customers and partners. From education,
of Excellence partner with Carrier businesses, leveraging and sustainability services.
consulting, and aftermarket services and support to our robust
real-time analytics and insights to address systematic
product portfolio, we deliver comprehensive solutions tailored to
improvement opportunities, and maximize customer retention Our NORESCO business helps clients adapt to and mitigate
our customers, empowering them to reach and exceed their goals.
and business growth. the impacts of climate change by decarbonizing, modernizing
A customer-centric culture is fundamental to the success and
and electrifying aging infrastructure to be more sustainable
growth of our company.
Product Transparency and resilient. Services also include lifecycle assessment modeling,
energy code compliance consulting, greenhouse gas analysis,
Product declarations provide customers with comprehensive
building performance testing, certification consulting and
information to enable informed sustainable product choices. In
facilitation, energy procurement and general contractor support.
response to growing customer and regulatory expectations for
transparency, Carrier discloses the environmental impact of select
Our Environmental Market Solutions Inc. (EMSI) business
products by publishing robust Lifecycle Assessments. In addition,
provides sustainable building design solutions along with
our Environmental Product Declarations empower customers
economic and technical feasibility assessments. Sustainable
to further align their purchasing decisions to their sustainability
design assessments can include the building interior, exterior walls,
objectives. The declarations disclose critical metrics such as, but
enclosure structures, and mechanical and electrical systems. EMSI
not limited to, greenhouse gas emissions, energy consumption,
helps customers optimize resource use while leveraging biophilic
ozone depletion, acidification, eutrophication potential, water
design and locally sourced materials to reduce building energy
usage, and virgin and recycled material composition.
consumption and carbon emissions.
Carrier 2024 Sustainability and Impact Report 34
Introduction Environment Sustainable Innovation Social Governance Indices
Delivering on Customer Needs
To support FreshLinc, a temperature-controlled To assist Changhua Christian Hospital in qualifying
distribution service provider, in reducing the carbon for a government subsidy program and upgrading
footprint of its commercial vehicle fleet, Carrier infrastructure, Carrier conducted an energy audit of
provided temperature-controlled trailers and chiller systems across several branches. Following the
tractor units fitted with Eco-Drive systems that use energy audit, the installation of five higher-efficiency
electric power from the truck’s engine to power the water-cooled chillers, Automated Logic’s WebCTRL
refrigerated trailers. The solutions are designed to building automation system and a five-year BluEdge
offer fuel and emissions savings, helping FreshLinc service contract will help Changhua Christian Hospital
continue to transform its fleet to make it more transform its indoor environments to improve energy
sustainable and efficient. The units are backed by and operational efficiency, allowing the hospital to
a Carrier BluEdge full-service maintenance package. better serve the health needs of people throughout
the region.
24/7 incident management service
included as part of the BluEdge full- 5-year BluEdge service contract
service maintenance package
To help the U.S. Environmental Protection Agency To enable Yang Ming Marine Transport Corp. to
upgrade infrastructure and decarbonize critical transport and monitor a wider range of perishables
buildings at its National Vehicle and Fuel Emissions on longer journeys, while maintaining quality,
Laboratory, Carrier’s NORESCO business is providing Carrier provided 2,000 PrimeLINE refrigeration units
upgrades through an energy savings performance featuring Lynx Fleet. The Lynx Fleet solution includes
contract. The program will transform the environment proprietary technology that monitors performance
at the facility to reduce energy usage and carbon and provides early warning actionable diagnostics
emissions during the 22-year contract term. and predictive analytics, transforming temperature-
controlled shipping environments into intelligent,
Projected to: connected ecosystems.
Reduce energy Cut annual emissions Reduce the facility’s Units support Carrier’s goal of
consumption of carbon dioxide water consumption helping customers avoid more than
by 39% equivalents by 3,150 by 16% 1 gigaton of greenhouse gas emissions
metric tons by 2030
Carrier 2024 Sustainability and Impact Report 35
Introduction Environment Sustainable Innovation Social Governance Indices
Design for Sustainability Lifecycle Assessments
A thorough examination of the environmental impact of our
GRI 301-2 | SASB RT-EE-440a.1 products is crucial to improving sustainability at Carrier. We are
standardizing and streamlining our global approach to Lifecycle
At Carrier, Design for Sustainability is a holistic design Assessments. We conduct comprehensive assessments, which
approach that emphasizes human well-being and environmental scrutinize the product lifecycle, encompassing raw materials and
stewardship. It focuses on resource efficiency and the use of processing, manufacturing, distribution, usage and end-of-life
more environmentally responsible materials to develop products considerations. Carrier adheres to ISO standards 14040 and 14044
and processes. The approach is incorporated into our Product in Europe, and ISO standards 14040, 14044 and 21930 in North
Development Process as our Engineering and Operations America, ensuring the integrity and consistency of our Lifecycle
teams collaborate to develop and implement viable and Assessments methodologies.
sustainable solutions.
Information collected during Lifecycle Assessments inform
We use model-based systems to optimize our product designs, our Environmental Product Declarations, including Product
material use and packaging while maintaining safety and Environmental Profiles. Upon gaining insights into the footprint of
performance. Our design tools allow us to determine and compare our products, we establish a baseline and look at ways to design
system and material changes in an agile manner, leading to more Carrier introduced the Toshiba Daiseikai 10 air conditioner, our products to optimize sustainability.
innovative and sustainable products and more cost-effective bringing sustainability, sleek design and performance to
solutions for our customers. homes. The indoor unit features ultra-quiet operation, a
wooden grille sourced from sustainable forests, and plastic By the end of 2023:
Design plays a crucial role in the appropriate selection of materials components made from 43% recycled materials. In addition
20
for our products. Beyond cost, Carrier’s Product Development to a best-in-class energy rating in cooling and heating, the
Process takes into consideration the efficient use of materials, ductless system offers motion tracking and connectivity
safety, quality and the supplier sourcing strategy, including the through a remote control, app and smart speakers.
associated supply chain sustainability risks. Product Environmental Profiles published by our Carrier
commercial HVAC facility in Montluel, France
Carrier’s Lifecycle Assessments evaluate factors like resource use,
Product Circularity
14 13
energy consumption and emissions from extraction to disposal.
The process identifies opportunities to reduce materials or select Carrier has developed programs to reduce the waste generation
more sustainable alternatives. This approach helps minimize waste of our products, including the transition toward circularity,
recognizing the importance of maximizing resource efficiency. Product Environmental Lifecycle Assessments
and encourages the adoption of more sustainable materials.
Profiles published by our conducted by our
Learn more about chemical compliance and management and Learn more about our circularity programs. CIAT business Sensitech business
our approach to conflict minerals.
Carrier 2024 Sustainability and Impact Report 36
Introduction Environment Sustainable Innovation Social Governance Indices
Product Responsibility Product safety training includes information on when and how to report potential or actual product
safety events. It is required for employees identified as critical participants in the incident escalation
process. Employees receive additional product safety training based on their roles.
GRI 3-3
Product Quality
Carrier’s proactive product integrity programs help ensure that the quality and safety of the products
98%
and services we provide meet or exceed customer and regulatory requirements. Our Quality Management System governs product quality policies
and programs, setting standards, processes and metrics to
help ensure the integrity of our products along their lifecycle.
Product Safety
of Carrier manufacturing
We regularly review data, lessons learned and best practices,
sites are ISO 9001:2025
deploying process and policy enhancements to continuously
certified
GRI 403-7, 416-1 improve quality across Carrier sites.
Our Product Integrity Policy establishes governance and coordination within and among our business
segments to ensure the quality and safety of the products and services we provide. Our product safety
program focuses on: Product Development Manufacturing Customer Use
• New products go and Production and Aftermarket
Proactive risk prevention Preventing product and Rapid and effective mitigation through a gated • Our factories undergo • We monitor products
during product development process safety defects during of potential product safety process, ensuring cross- an in-depth quality after they are delivered
safety reviews to ensure that production by implementing risks identified in the field. functional teams are assessment to ensure to customers by
compliance, quality and safety monitoring and control plans. involved from concept compliance with our reviewing warranty
meet or exceed certification to commercialization. standards, along with data and customer
requirements. •
Products are released product quality and feedback.
when specified safety, integrity.
• Quality managers
The Carrier Product and Services Safety Council is responsible for the prompt identification, verification and reliability • We track product quality regularly review claims
investigation and resolution of potential product safety issues and reviews specific customer and testing is completed. results and set annual data so we can quickly
regulatory communications prior to release. The Carrier Product Safety Board, composed of our
• Products are approved goals across the entire react to field issues and
Chairman & Chief Executive Officer and key direct reports, is responsible for overall implementation
by an internal review value stream. customer feedback.
of the Carrier product safety program. The Governance Committee of our Board of Directors oversees
board consisting of
program progress.
executive leadership from
Each business segment is expected to implement our corporate Product Integrity Policy by: Engineering; Operations;
Quality; Product Safety;
and Environmental,
Appointing a Product Safety Establishing a Product and Exercising responsibility for Health & Safety.
Officer to manage oversight Services Safety Council to incident identification, reporting,
of product safety issues and review product safety issues investigation and timely
establish proactive measures. and oversee implementation of resolution while fostering an
the Product Integrity Policy. effective safety culture.
Carrier 2024 Sustainability and Impact Report 37
Introduction Environment Sustainable Innovation Social Governance Indices
Continuous Improvement Carrier’s Global Product Cybersecurity team supports and
delivers on the strategic, production, operational and commercial
cybersecurity-related demands of our stakeholders in three areas:
Carrier’s Internal Audit team assesses product safety culture and
secure product development, product cyber operations and cyber
awareness in selected business segment sites at least three times
commercial innovation.
a year. The Carrier Product Safety Board, chaired by our Chairman
& Chief Executive Officer, meets at least once annually to review Carrier’s dynamic secure product development and lifecycle
business segment performance, company-level performance support process earned a rigorous cybersecurity certification
and program health indicators. We also perform rigorous after meeting the requirements for ANSI/ISA-62443-4-1:2018 and
internal quality management audits to drive quality across our IEC 62443-4-1-2018 at maturity level 3. Issued by exida LLC, an
manufacturing facilities. ISASecure and ISO-accredited certifying body, this independent
analysis of processes, procedures and controls enables a security
Product Cybersecurity posture for Carrier’s offerings, products and technologies. The
designation means the company is meeting and exceeding best
practices, transparency and enabling mission success for our
GRI 418-1 customers. Maturity level 3 indicates that the practice is defined
and repeatable throughout the organization, ensuring that
In accordance with our Product Cybersecurity Policy, Carrier
offerings are built with security.
products and services are subject to robust secure-development
and process-control requirements. Carrier’s Dynamic Secure In addition, Carrier is a CVE Numbering Authority, a program
Development Lifecycle Support process enables compliance with sponsored by the U.S. Department of Homeland Security through
respected international cybersecurity standards, such as IEC/ISA/ the Cybersecurity and Infrastructure Security Agency.
ANSI 62443 and NIST 800-53.
Carrier has not received any complaints relating to breaches of
Our goal is to ensure the following strategic outcomes for customer privacy and loss of customer data.
our offerings:
• Products and services that are secure by design.
• Standards-based cybersecurity governance and compliance.
• Persistent vigilance and continuous improvement.
• Customer mission success.
Carrier 2024 Sustainability and Impact Report 38
Introduction Environment Sustainable Innovation Social Governance Indices
Social
At Carrier, our diverse ideas and perspectives are our Global Workforce 40
greatest source of innovation. With The Carrier Way and Culture & Engagement 41
Leading People The Carrier Way as our foundation, we Talent & Career Development 42
invest in programs that maximize the impact we can have
Inclusion 45
on our planet, people and communities.
Employee Well-Being 48
Health & Safety 50
Corporate Social Responsibility 54
Carrier 2024 Sustainability and Impact Report 39
Introduction Environment Sustainable Innovation Social Governance Indices
Global Workforce 2023 Global Workforce
Employees By Gender 2021 2022 2023
GRI 2-7, 401-1, 405-1
~53,000
Female 27% 29% 29%
We strive to connect our people to our vision, our culture and each other. We work as one team, Male 73% 71% 71%
with employees across more than 50 countries. Carrier is an employer of choice, focused on attracting,
developing and retaining world-class talent, and fostering an inclusive culture. We develop and deploy
best-in-class programs and practices, provide enriching career opportunities, listen to employee
feedback and always challenge ourselves to do better.
We approach the growth and development of our talent through our talent ecosystem, which enables
us to Build Best Teams and is a unifying fabric that connects our strategy, embeds talent in the
By Region1
company’s culture and activates it through people programs, processes and leadership. It is a strategic
approach to building talent, ensuring that Carrier remains at the forefront of innovation and excellence.
Talent Strategy
Americas
Talent Philosophy and Leader Success Model
39% EMEA
25%
Talent Programs and Processes Asia Pacific
36%
People Leader Talent Accountability
Our workforce continues to evolve along with our portfolio transformation. At Carrier, we review our
workforce to assess and address employee retention, current skills gaps, recruiting and hiring, market
intelligence, employee performance, the competitive landscape, and current and future market needs.
In 2023, we onboarded more than 6,800 new hires and increased our strategic workforce planning
capability, deploying it in targeted and critical areas such as service technicians. Overall, our focus on
people and culture contributed to a 5% reduction in voluntary employee turnover2 compared with the 1
Percentages are rounded. Learn more about our workforce data.
previous year. 2
Global voluntary turnover includes retirement and death-in-service reasons. Employee types excluded are apprentice, assignee, intern, co-op, retiree,
trainee, seasonal and temporary.
Carrier 2024 Sustainability and Impact Report 40
Introduction Environment Sustainable Innovation Social Governance Indices
Culture & Engagement
Pulse Employee Survey Results
Our 2023 Pulse survey results showed that Carrier’s engagement and inclusion
scores are above benchmark and have each improved by six points since we
became an independent company in 2020.
GRI 2-29, 3-3 On average, 79% of our employees participated in the Pulse surveys in 2023,
up from an average of 59% in 2019.
The Carrier Way Engagement Score1 Inclusion Score1
In response to the question, In response to the statement,
Learn about The Carrier Way and Leading People The Carrier Way. “How happy are you working at the company?” “I feel a sense of belonging at the company.”
76 70 74 74 68 70
As part of our Leading People The Carrier Way activation activities, our talent and leadership
principles have been embedded into hiring, assessment, performance, development and reward
practices to drive consistency and enable the recruitment and retention of top talent, internal talent
2023 2019 Benchmark2 2023 2019 Benchmark2
mobility and engagement.
For example, we implemented Hiring The Carrier Way, a program to source, interview and select
talent in alignment with our framework. It includes structured interview guides and training for people
leaders designed to enhance the candidate experience and improve quality of selection decisions.
Employee Engagement
We take great care in listening to our employees throughout their lifecycle at Carrier, reflecting
on their feedback and taking action. One of the ways we achieve this is by conducting Pulse
engagement surveys three times a year, in local language. Pulse surveys are an opportunity for
employees to provide honest, confidential feedback. People leaders have access to the results
for their teams and are encouraged to share and collaborate with their employees to identify
engagement actions. Teams can use our new online Culture and Engagement Hub, featuring
resources that support development, well-being, inclusion and more.
Culture and employee engagement have been a key focus throughout our portfolio transformation
and we conducted targeted cultural surveys to support integration. One example was the acquisition
of Toshiba Carrier Corp., now known as Carrier Japan Corp., where we used cultural integration surveys
and tools to align to shared values, streamline processes and leverage best practices. We created a
Change Management Network, an informal group of change agents nominated by business leaders,
to provide feedback, raise questions, enhance communication and facilitate changes. The change
agents were pivotal in introducing new employees to The Carrier Way.
1
Score represents the average of our three surveys for 2023.
2
The 2023 benchmark is a global external benchmark provided by Carrier’s third-party engagement survey provider.
Carrier 2024 Sustainability and Impact Report 41
Introduction Environment Sustainable Innovation Social Governance Indices
Talent & Career Talent Review & Succession Planning
Development
Once a year Carrier conducts a formal talent and succession plan review, the Leadership Development
Review, and is evolving to an “always on” philosophy where people leaders continuously assess and
develop talent to drive cross-company mobility in alignment with Leading People The Carrier Way.
In addition, Carrier also conducts talent reviews with the Board of Directors.
GRI 404-1, 404-2, 404-3
Investing in Early Career Talent
Leading People The Carrier Way is our Talent Philosophy and Leader Success Model.
Carrier maintains partnerships with colleges and universities to strengthen our talent pipeline.
We offer extensive opportunities for college and recent undergraduate and graduate students.
Through on-campus recruiting programs and university partnership engagement, we focus on
AV
IOR
S DEV
EL
O
OUR TALENT OUR LEADER attracting the best talent and providing rewarding career opportunities. In 2023, we increased student
PHILOSOPHY SUCCESS MODEL
H
PM
BE
EN
participation in our six-week leadership program at select colleges, featuring mentors from Carrier
T
BUILD
DIFFERENT
BEST
ENCY
who led workshops on inclusion and career preparation. Through workforce planning and university
TEAMS Our guiding principles for how Our expectations for how
PAR
IAT
NS People Leaders develop talent People Leaders lead others.
N
RA
IO
T
recruiting, we identify talent to fulfill key early career roles throughout the organization.
PE
RFOR ANCE
M
and Build Best Teams.
LEADING
We value BEHAVIORS while achieving results. Think “Outside In”
Internship Program
We use the “what” and the “how” to assess performance Seek market-leading solutions.
and potential. We role model The Carrier Way behaviors One Carrier always.
and hold each other accountable to do the same. Know and amaze your customers.
PEOPLE We DEVELOP and help our people grow.
We support a culture of growth, valuing experiences and
Define the Future Boldly
Think big, take risks, inspire ideas.
Students learn about our industry-leading products and gain
on-the-job, hands-on experience creating innovative solutions
cross-company movement to accelerate development. Make change comfortable.
Employees own their development, with support from
their leader.
Try, learn, celebrate. by working with mentors and senior leaders.
THE We are TRANSPARENT and give
real-time feedback.
We discuss performance and potential, so all employees
Generate Energy
Connect people to purpose, empower. Rotational Leadership Program
CARRIER
can grow and succeed. Leaders and employees give and Lead inclusively, ignite optimism.
Choose mission over self.
Recent graduates build skills by rotating through roles in
receive two-way feedback candidly and constructively.
We PERFORM by setting stretch goals and
different disciplines within our Marketing and Communications,
WAY
holding individuals and teams accountable. Own Outcomes
We coach for higher performance, raising the bar every
year, and take timely action.
Simplify, prioritize and focus.
Anticipate, adjust, clear the path. Digital Technology, Engineering, Finance, Human Resources and
Make it happen, together.
We DIFFERENTIATE based on contributions. Operations teams. Through work experience, seminars, mentoring
We recognize and reward both high performance and
high potential through differentiated investment, and guidance from Carrier leaders and program alumni, the
rotational program develops employee capabilities, enhances
development, compensation and career progression.
learning and develops future leaders.
Carrier helps employees advance their careers through growth assignments and experiences,
exposure and education. We invest in our people because employee growth and ongoing development
drive innovation, deliver value for our customers and propel our company forward. Through robust
~60 160+ ~20%
new hires joined our interns at Carrier sites in combined increase in the United
development initiatives that align with Carrier’s business strategy and The Carrier Way, we nurture Rotational Leadership the United States in 2023 States, demonstrating our
individual career progression at all levels, ensure a strong talent pipeline and strengthen Carrier’s Program in the United commitment to developing entry-
position as an employer of choice. States in 2023 level pipelines for critical skills
Carrier 2024 Sustainability and Impact Report 42
Introduction Environment Sustainable Innovation Social Governance Indices
Investing in Learning
Our learning ecosystem consists of solutions to support an employee’s career journey.
$7.2M+ ~13
total investment1 in training and hours of training completed by eligible2
education in 2023 employees, on average,3 in 2023
Global Learning Programs Carrier Technical Training Center
Carrier’s global learning portal serves as a centralized hub, offering employees access to an In 2023, Carrier opened a 6,000-square-foot Technical Training Center in Indianapolis, a
array of tools aimed at skill development. From leadership and ethics to job- or function-specific multimillion-dollar investment in training the next generation of skilled HVAC technicians.
programs, our platform helps employees easily access resources tailored to their professional The expected shortage of HVAC technicians over the next decade could negatively impact
development needs. Through the portal, we offer full- and part-time employees access to nearly homeowner wait times for installation and maintenance and leave business owners scrambling to
47,000 courses in multiple languages. We also support employees at all levels by providing find qualified employees. Our center aims to address this challenge by training Carrier’s network
solutions to learn more than 50 languages. of distributors, dealers and technicians using state-of-the-art technology and labs.
Carrier Excellence Carrier University
The Carrier Excellence curriculum contains development and certification opportunities for all roles Carrier University provides our large and diverse customer base with HVAC technical training and
and skill levels in the continuous improvement framework at Carrier. educational support materials that reflect an ever-changing industry.
Carrier Digital Academy Carrier Engineering University
The Carrier Digital Academy enables employees to assess and improve their skill proficiency, Carrier Engineering University facilitates knowledge-sharing and provides tools and processes to
apply learnings in sandbox environments and collaborate across teams. help maintain a competitive advantage and stay at the forefront of product innovation.
1
Training investment includes training vendors and Employee Scholar Program.
2
Eligible employees include regular employees, apprentices, assignees, fixed term, intern/co-op, retirees, seasonal, temporary and trainees. This excludes
contractors. Data does not include the acquisition of Toshiba Carrier Corp., now known as Carrier Japan Corp., which was integrated into the Carrier
Learning Portal in 2023, but employees were excluded from sustainability and impact reporting since they did not have access until January 2024.
3
Average training hours per learner represents the number of trackable hours spent in training activities per year divided by total trained eligible employees.
Carrier 2024 Sustainability and Impact Report 43
Introduction Environment Sustainable Innovation Social Governance Indices
Investing in Our Leaders Elevate Development Program
Carrier’s Elevate program aims to provide
New People Leader Program development opportunities and empower
250+
employees. It equips participants with the tools
Leveraging the guiding principles and expectations defined in Leading People The Carrier Way, our to gain insights about their greatest strengths
New People Leader Program equips leaders to Build Best Teams. In 2023, we increased participation in and opportunities, while taking an active role in
our 14-week New People Leader Program. shaping their careers. employees from across ~20 countries
have graduated from Elevate since its
Talent Possible inception in 2019
To advance the careers of our future leaders,
Executive Leadership Development Program
our Talent Possible suite of development
programs help develop the leadership It is imperative that executives lead the enterprise and navigate transformation with confidence and
capabilities needed to Build Best Teams. agility. In collaboration with Harvard Business School Executive Education, we developed a custom
executive leadership development program, Catalyst. The program, launched in 2024, focuses on
leading the enterprise, teams and self, and is designed to:
~350 • Align our vision and strategy.
Carrier employees graduated from one • Build enterprise leadership and capability.
of our Talent Possible cohorts in 2023
• Drive culture change for teams and talent.
Talent Possible supports leadership development needs at three critical career stages: early • Prioritize customer-centricity.
career, mid-career and senior leadership. From building trust to managing priorities and guiding • Execute and achieve outcomes.
collaborative discussions, each program focuses on the unique skills leaders need to support
themselves and their teams. A six-day immersive experience on the Harvard Business School campus energizes and inspires
executives and elevates their capacity to drive transformative change. Executives then craft goals to
further support business objectives, strengthen leadership and activate change through insights and
Discover Your Possible Connect Your Possible Lead Your Possible coaching. The program serves as the catalyst for strategic transformation and the evolution of our
covers topics critical provides foundational is designed for senior culture, galvanizing our executives behind our vision.
to building leadership skills for mid-career talent leaders with potential
capabilities early in and equips professionals for growth into
one’s career. with the mindset, skills broader roles.
and tools they need to
achieve organizational
and personal objectives.
Carrier 2024 Sustainability and Impact Report 44
Introduction Environment Sustainable Innovation Social Governance Indices
Investing in Degrees & Certifications
Beyond developing subject matter expertise, we promote continuous learning through our
Inclusion
Employee Scholar Program, which covers the cost of an employee’s tuition, academic fees and books
at approved universities. The program offers advanced tuition and tuition reimbursement options, GRI 3-3
providing employees with access to complete associate through master-level degrees and certificate
programs that are applicable to a Carrier business or function. Tuition advancement offsets tuition Inclusion is a paramount value in The Carrier Way. We are committed
costs, making it more feasible for employees to pursue additional degrees. to a workplace that is truly and genuinely inclusive, one that inspires
and encourages everyone, everywhere, to bring their authentic selves
to work every day. Our inclusion philosophy, _belong, highlights the
~$170M 50+ 8,000+ 1,300+
importance of culture in a globally diverse workplace where everyone
can come to work – every day – and feel like they belong.
invested since countries degrees earned participants There is zero tolerance for any form of discrimination against any of our employees, and we provide
inception in 1996 with employee since inception in 2023 employees with access to Carrier’s Speak Up program to anonymously report incidents of any type of
participation discrimination or harassment. Learn more about reporting and transparency.
since inception
Four-Tenet Strategy
Development & Performance Management Our _belong inclusion philosophy and our four-tenet strategy – Reflect Our Communities, Develop
& Sponsor, Drive Inclusion and Lean Forward – continue to provide our people leaders and employees
with the guiding principles for becoming a more globally inclusive company.
GRI 404-3
Performance Connections are transparent, Reflect Our Communities Drive Inclusion
two-way conversations between people leaders
and employees that include goal alignment, Recruit inclusively, including from the Drive an inclusive culture through education,
feedback and development in alignment with communities in which we live and work. training, listening sessions and more.
The Carrier Way and Leading People The Carrier
90% Way. We accelerated our focus on feedback and
development by equipping employees with new
of eligible1 employees participated in 2023 frameworks, resources and training, enabling Develop & Sponsor Lean Forward
performance conversations focused on goals, individuals at all levels to take ownership of
Foster a sense of belonging by developing, Celebrate our differences.
feedback and development their career growth. This also sets the stage for
mentoring and sponsoring employees.
people leaders to coach for higher performance
– raising the bar every year.
1
Active non-production employees, excluding production maintenance or where governed by collective bargaining obligations.
Carrier 2024 Sustainability and Impact Report 45
Introduction Environment Sustainable Innovation Social Governance Indices
Reflect Our Communities Develop & Sponsor United Carrier Asian Network
GRI 405-1 Development and sponsorship are critical to our journey. A key Drives awareness about Asian culture,
part of our inclusion philosophy is focused development through fosters inclusion and builds an ecosystem
We recruit inclusively; build partnerships with colleges, Employee Resource Groups (ERGs). for people and company growth.
universities and professional organizations; and hire and promote
the most talented employees. We build an intentional connection Employee Resource Groups
between our talent practices and inclusion. Our efforts to build Carrier Black Alliance
Our ERGs reflect the global diversity of Carrier’s workforce;
an inclusive workforce culture are centered around our _belong
foster a culture of inclusion, allyship and sponsorship for all; Fosters programs to attract, retain,
inclusion philosophy.
and continue to be open to all employees. inspire and support Black and African
American employees.
View EEO-1 Report The ERGs have five
strategic working areas:
education and awareness, Carrier Hispanics & Latinos Employee
professional networking, Engagement Resource Group
Diversity Representation 2023 community outreach, Promotes attraction, connection,
Global executive diversity1 50% business partnering and development and leadership of
strategy execution. They Hispanic and Latinx employees.
Global women executives 32% operate with a formal
leadership structure,
U.S. People of Color executives 33% including a steering Pride
U.S. People of Color professionals2 27% committee, senior Creates an inclusive work environment
leadership sponsorship through education, awareness and
and a defined mission building a sense of belonging for
Learn more about our Board of Directors. statement that LGBTQIA+ employees.
aligns with Carrier’s
Partnerships & Affiliations business strategy.
Military & Veterans
To support talent within the industry, our company engages with
Supports the recruitment, growth,
universities such as Indiana University, North Carolina Agricultural
retention, professional transition, well-
and Technical State University, Spelman College and Syracuse
being and continued service of veterans,
University. In addition, Carrier participates in national and regional
military members and their families.
events with professional organizations such as the Society of
Women Engineers, the Society of Hispanic Professional Engineers
and the National Society of Black Engineers, along with veteran Women Empowerment at Carrier
recruiting networks.
Develops women in the organization,
addresses unique challenges of women
1
Global women and U.S. People of Color. in leadership and fosters active allyship.
2
Includes directors, managers and professionals.
Carrier 2024 Sustainability and Impact Report 46
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Drive Inclusion I&D Champions
Carrier’s I&D Champions Program features a global group of trained, multilingual professionals who
The key to inclusion is to listen and learn, and to educate leaders and employees across the are available to our employees to discuss possible concerns related to our workplace culture or our
organization. Through Employee Resource Groups, fireside chats, listening sessions and training, we inclusion commitment, including, but not limited to, harassment or discrimination matters.
drive a culture of inclusion throughout the company. We empower people leaders with the tools and
resources they need to lead globally diverse teams. Our Inclusive Leadership Toolkit includes best
practices in inclusive leadership behaviors, a self-assessment tool and recommended learning modules,
and our Allyship Toolkit provides resources in at least eight languages to become influential allies and
foster a culture of support.
We provide employees and people leaders with resources to develop their awareness and
understanding through new learning content in the Carrier Learning Portal. We focus on allyship and
inclusion as core themes and offer online learning in 30 languages.
For the third consecutive year, Carrier was named a Best Place to Work for LGBTQ+ Equality by the
Human Rights Campaign Foundation in the United States and for the second time in Mexico by
Equidad Mexico. Both locations received a perfect score of 100 points on the Corporate Equality Index,
advocate listen learn yield demonstrating our commitment to workplace inclusion. Carrier was also named to the Forbes list of the
World’s Best Employers.
for others and with empathy to and build self-awareness the floor, speaking
intervene when understand different and acknowledge less and listening more,
non-inclusive
behaviors occur.
perspectives and
ensure others feel
individual experiences
as compared with
enabling belonging
and knowing that Lean Forward
seen and heard. our own. allyship starts with you.
We celebrate our differences, communicate authentically and transparently about inclusion and
continuously seek new ideas to make Carrier an inclusive workplace.
As a part of our partnership with CEO Action for Diversity We foster a culture that drives The Carrier Way values of respect, integrity, inclusion, innovation and
& Inclusion, we held our annual companywide “Day of excellence in line with our _belong philosophy. We stand against discrimination and inequality in any
Understanding,” focusing our discussion on allyship, form. The Carrier Board of Directors is engaged in these matters and the Governance Committee
and offered our employees inclusion awareness training. reviews and oversees our efforts.
Carrier 2024 Sustainability and Impact Report 47
Introduction Environment Sustainable Innovation Social Governance Indices
Employee
The following benefits reflect our offerings in the United States for salaried and nonunion hourly employees.
Benefits vary by region, business alignment, union agreement and employee status:
Well-Being
Healthcare Plans Voluntary Benefits
• Medical, dental and vision coverage • Accident insurance
• Prescription drug coverage • Critical illness insurance
• Health Savings Account (HSA) • Hospital indemnity insurance
GRI 401-2, 403-3, 403-6
• Flexible Spending Account (FSA) • Identity theft protection insurance
Investing in employee well-being is a critical priority for • Legal insurance
optimizing Carrier’s culture. We embed well-being by delivering Health and Wellness Resources
• Excess liability insurance
a holistic portfolio of benefits designed to enable physical, • Employee Assistance Program
social, emotional and financial well-being so that employees
can thrive at home and at work.
• Health and wellness program with incentives Work/Life/Time Away Benefits
• Tobacco cessation support • Paid vacation and paid holidays
Health & Wellness • Resources to compare medical service prices
and doctor reviews
•
•
Adoption/surrogacy assistance
Parental leave
Carrier offers competitive benefits programs for all employees, • Medical protection for business travelers
• Medical and family leave of absence
monitoring new market developments and enhancing our
programs when necessary. The individual plans that make up Financial Benefits and Resources • Bereavement leave
Carrier’s benefits are designed to balance immediate needs, • Retirement savings plan 401(k) • Short- and long-term disability insurance
such as healthcare, with a longer-term focus, such as planning
for retirement. • Retirement investment guidance
To learn more about Carrier’s benefits, refer to our
• Employee Scholar Program corporate website.
In coordination with each country’s social welfare system,
and in addition to any required local healthcare participation, Life and Accident Insurance
we may provide additional benefits based on the market
• Life insurance (basic and supplemental)
competitiveness in that country. We meet all local regulations
related to benefits. • Dependent life insurance
• Accidental death and dismemberment coverage
• Business travel accident coverage
Carrier 2024 Sustainability and Impact Report 48
Introduction Environment Sustainable Innovation Social Governance Indices
Global Employee Assistance Program Alternative Work Arrangement Policy
Our Global Employee Assistance Program benefits are available at no cost to employees and their Employees requiring additional flexibility beyond the scope of worX are considered for alternative work
household family members. The program provides access to resources and confidential support on arrangements on a case-by-case basis in situations where creative work schedules have been shown to
work-life balance, family, mental health and more. accomplish work, team and personal goals, while also serving Carrier as a whole.
Flexible Work Fitness Centers
Carrier understands the importance of flexible work to enable a world-class workforce and culture, Carrier has fitness centers at our world headquarters in Palm Beach Gardens, Florida, and at other sites
while also maintaining a productive work environment focused on outcomes and achieving results. around the world. For U.S. locations without fitness centers, local discounts are available.
Carrier’s flexible work philosophy, worX, provides for 20-25% remote work flexibility.
Aligned with these tenets and The Carrier Way, worX provides employees with
Paid Vacation Days & Holidays
remote work flexibility, balancing the needs of employees, the business and Carrier encourages employees to have work-life balance in their personal and professional lives.
customers. Our informal approach to flexibility is trust-based, not rules-based, and Paid vacation, holidays and personal days are designed to provide employees with time away from
designed to be informal while promoting alignment with our cultural objectives.1 work and are aligned to global and local needs.
Carrier’s global flexible work philosophy is rooted in four key tenets.
Leave Programs
Flexibility Matters Place Matters GRI 401-3
Work and life are dynamic, Our Carrier locations are the places where we Return to work rate2 after
Carrier offers differentiated leave programs that allow
and flex work should be, too. come together to create a community, and we
value the in-person moments of being together.
employees to manage their individual family situations. maternity or parental leave3:
98% 100%
At Carrier, parents can relax knowing they can take
Team Matters Outcomes Matter time away from work to bond with new children while
still providing for their families. Eligible U.S. employees,
We recognize that work is a team sport, We understand our goals, and including birth mothers and fathers, adoptive parents, Female Male
and we win and grow together. we achieve results with accountability. legal guardians and parents of surrogate children,
receive leave benefits.
Additionally, Carrier provides adoption and surrogacy
assistance to help offset related costs. In other parts of
the world, local policies apply.
1
For those employees whose roles and responsibilities allow for remote work. May be subject to location regulation or bargaining/consultation requirement.
2
Returned to work from parental leave for at least one month.
3
In 2023, more than 200 eligible U.S. employees took advantage of the benefit.
Carrier 2024 Sustainability and Impact Report 49
Introduction Environment Sustainable Innovation Social Governance Indices
Health & Safety Total Recordable Incident Rate1
0.4
0.3 0.38
GRI 3-3, 403-1, 403-9 0.31 0.30
0.2
As part of our 2030 sustainability and impact goals, we are
committed to achieving world-class safety performance. We 0.1
invest in creating safe work environments, continuous monitoring
and performance improvement, ongoing training and a strong
0
safety culture to deliver safe, reliable, compliant and sustainable 2021 2022 2023
workplaces for our employees, contractors, subcontractors
and customers. This system supports our ability to maintain safety compliance and Lost-Time Incident Rate2
drives continuous improvement across our global facilities and
Our approach to workplace health and safety is built on field operations, enabling us to:
three principles: 0.2
• Control hazards to provide our employees, contractors and
Safety is a responsibility shared by all employees and subcontractors with workplaces free from injury and illness.
1 promoted by leadership. • Fulfill EH&S legal and other applicable compliance obligations.
0.1
0.12 0.12
0.10
• Proactively manage emerging impacts, hazards and risks.
Leading indicators help focus our attention on areas
2 where risks and injuries can emerge over time. • Monitor and continuously improve performance.
0
2021 2022 2023
• Achieve our health and safety objectives and
Workplace safety requires continuous discipline improvement targets.
3 and focus.
The primary health and safety risks within our manufacturing
facilities and service operations are associated with machines,
We measure the effectiveness of our health and safety programs
forklift trucks, working at heights, chemicals, hazardous energy,
using metrics such as total recordable incident rate1 (TRIR) and
These principles guide the management of health and safety, electricity and material handling. We address these risks through
lost-time incident rate2 (LTIR). Our 2030 goal to achieve world-class
hazard identification and control across our global operations and our EH&S Operating System, targeted programs, communications
safety performance requires that we achieve a TRIR of 0.25 and an
service locations. Carrier’s Environmental, Health & Safety (EH&S) and training programs.
LTIR of 0.1.
Policy is reinforced by our EH&S Operating System.
In 2023, we continued to reduce our total recordable incident rate
and lost-time incident rate compared with the past two years. Our
improvement in health and safety performance can be attributed
to our close examination of incident and injury trends, strong
promotion of near-miss and unsafe-condition reporting, EH&S
TRIR: Number of fatalities, lost-time cases, restricted duty cases and medical treatment cases x
1
200,000/total hours worked. audits across global operations and service sites, and the revisions
2
LTIR: Number of lost-time cases x 200,000/total hours worked. made to and the promotion of our EH&S programs and standards.
Carrier 2024 Sustainability and Impact Report 50
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Incident Prevention Trained and competent service technicians, including Carrier
maintenance or engineering employees and contractors, must
Employees must report all work-related injuries, illnesses and
near misses through the local system, using physical reporting,
& Investigation
conduct a pretask assessment prior to starting nonroutine a phone or a desktop application to aid the incident investigation
work, such as new service contracts. Once hazards are identified process. Local reporting is then integrated into the global
and risks are ranked, control measures are implemented using reporting system to identify trends and design appropriate
GRI 403-2, 403-9 the hierarchy of controls. The primary goal of risk mitigation is programs for remediation. Each site is tasked with ensuring that
hazard elimination and putting control measures in place that adequately trained and competent employees oversee incident
Carrier’s Health and Safety Risk Assessment Standard establishes comply with Carrier, regulatory, and machine and equipment reporting procedures.
a hazard identification and risk assessment program to identify manufacturer requirements.
and control routine and nonroutine hazards across our global
operations. This standard supports the Carrier EH&S Policy and our Our Lead with Safety program focuses on nine Safety
Lead with Safety program, and it applies to all Carrier owned and Commitments and is targeted at identified high-risk activities
leased facilities and service operations. across all Carrier operations. Employees and contractors
are empowered to acknowledge and embrace each of our
As part of the risk assessment standard, each site must document: commitments. Companywide Safety Commitments ensure
a consistent culture and hazard control so incidents can be
• A risk assessment program, including hazard identification prevented and everyone can go home safe every day.
and risk assessments of operations, facilities, research and
development, and field work. For all employees, the Safety Commitments empower a culture of:
• Management of Change process.
• Proactively identifying hazards or risks to prevent injury or
• Heat maps based on functional hazard risk assessments. harm to the individual or peers.
• Audit and inspection programs. • Stop work or stop the line where it is believed there is a
• Training and communication plans. high risk.
• Immediately reporting risks or unsafe conditions to
supervisors or managers so that effective corrective
actions can be implemented.
Our Stop Work Authority Standard covers the expectations and
the process to stop, assess, control and follow up if any task
cannot be performed safely by employees, contractors or visitors
on the manufacturing floor or in field operations. All site leadership
teams promote and reinforce this behavior and prevent the threat
of retribution and retaliation for reporting safety concerns or
stopping work. Stop Work events are immediately reported to the
area supervisor, the site EH&S team and site leadership where
appropriate. Stop Work events and unsafe conditions are tracked
within our global reporting system, providing insights that drive
proactive controls to help avoid future incidents. Lead with Safety posters help promote a safety culture in our manufacturing facilities.
Carrier 2024 Sustainability and Impact Report 51
Introduction Environment Sustainable Innovation Social Governance Indices
Culture & Training & Development
GRI 403-5 In 2023, Carrier commercial HVAC held a
Engagement Effective health and safety training is essential
safety month campaign in China. The team
shared its experiences and best practices of
for cultivating a culture centered on safety. safety management, while reviewing Carrier’s
GRI 403-4 EH&S Policy, including Lead with Safety and
Carrier’s EH&S Operating System requires the
establishment and execution of annual training Stop Work authority.
Qualified and dedicated health and safety
professionals implement Carrier’s EH&S plans throughout our manufacturing and
service operations. These plans detail the target Carrier launched a series of innovative and
Operating System across our global operations results-oriented safety activities to promote
and field services. We encourage and facilitate audience, training providers, delivery methods
and topics covered. safety at work, including:
two-way active dialogue with employees
through multiple communication mechanisms, • The Hidden Hazard Cleanup campaign
Our training strategy integrates a mix of
including works council meetings, safety that encouraged employees to identify
practical hands-on, in-person and online
committees, collaborative inspection programs and eliminate hidden hazards.
training that is customized to address specific
and open forum staff meetings. This helps
work-related hazards and hazardous activities, • The High Voltage Electrical Safety
create a culture of hazard awareness and
and meet local, regional or country-specific Operation Training and Arc Protection Kit
prevention that drives our continuous safety
training requirements. Manufacturing and field Wearing Drill campaign organized by the
improvement journey.
employees receive health and safety training Electrical Safety Committee.
The EH&S global team meets regularly to direct during new hire orientation and onboarding,
and ongoing toolbox talks. • The “Who’s Still Standing?” safety
and coordinate EH&S initiatives, including: knowledge competition for service
technicians.
• Reviewing and updating programs.
• The “Let’s Talk Safety” campaign, covering
• Identifying new programs and policies. 59 safety topics to help service technicians
• Conducting evaluations. build awareness of potential work hazards
and provide safety practices through
• Evaluating progress to goals.
discussions, guidance on how to spot
• Reviewing compliance assessments. work hazards, Q&A sessions and drills.
• Implementing and communicating with • Site inspections by service leaders at all Poster translation: “Carrier HVAC Service & Aftermarket Team
Successfully Completed 2023 Safety Month. I work for Carrier.
employees about recommended health levels to assess operational behaviors of I am responsible for safety.”
and safety actions. service technicians.
• Reviewing incidents and injuries that can
foster learning and improvement across our
global operations. In 2023, for the third time, Carrier was awarded an Outstanding Safety Performance Award in the
construction category by the Occupational Safety and Health Council and Labour Department of
Hong Kong. The award recognizes companies for promoting and maintaining a safe work environment.
Carrier 2024 Sustainability and Impact Report 52
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Occupational Health Machine Safeguarding
GRI 403-3, 403-6, 403-7 Carrier’s EH&S Operating System requires sites and operations
to have documented programs focusing on continuous
In addition to our culture of employee well-being, we recognize improvement of powered machine and equipment safety,
that our operations can impact the health of our workforce due to promoting safe operation of machinery. Carrier continues to
potential exposure to chemicals, noise, heat or other environmental invest in machine safeguarding.
workplace hazards. As part of Carrier’s hazard identification process,
operating units and field services are required to identify and assess Carrier’s machine safeguarding program includes:
risks associated with industrial hygiene. We implement effective
controls and continuously monitor control measures and employee • Risk assessing all machines.
exposures, ensuring exposures are within regulatory thresholds. • Appropriately safeguarding moving machine parts.
Noise & Hearing Conservation • Implementing administrative controls for each specific
machine, including work instructions and pre-shift inspections.
Carrier’s EH&S Operating System requires facilities to identify
and assess noise hazards, ensure the hazards are appropriately • Providing communication and awareness materials for training.
documented, and review and improve (where possible) significant
Emergency Management
noise hazards. Carrier continues to invest in engineered controls
to reduce noise levels.
Heat Stress Business disruption can happen at any time due to extreme
weather, loss of critical infrastructure, violence, disease outbreaks,
Record-high temperatures have the potential to impact
pandemics or other issues. Emergencies can occur at a facility
Carrier employees across the world. In 2023, Carrier launched a
or on a regional, national or global level. Carrier’s emergency and
proactive “Beat the Heat” campaign to ensure employees know
incident response procedures provide frameworks for effective
the importance of taking action to prevent heat-related illnesses. Directive; and the EU’s Registration, Evaluation, Authorisation emergency management and recovery.
It included reminders to hydrate, use shaded break areas and detect and Restriction of Chemicals Regulation.
or prevent heat-related illnesses. Employees were encouraged to At the facility or business-segment level, emergency preparedness
share the information at work, at home and in their communities. Carrier’s chemical compliance and management includes: and response are managed by Carrier’s EH&S team and facility or
site-security leaders. As per our operating system requirements,
Chemical Compliance & Management • A global regulatory monitoring program. sites and operations must develop plans and procedures to
All Carrier sites and operations are required to have documented • A comprehensive chemical inventory. respond to identified emergency scenarios that may arise due to
chemical management programs to prevent potential exposure internal and external sources. Plans and procedures must remain
to health and safety risks in the work environment. Carrier’s • Communication and awareness materials for training. current, readily accessible and trialed to ensure effectiveness.
Product Regulatory Compliance team works with product teams • An approval process for introducing new chemicals. Procedures and equipment to respond to emergencies must be
to ensure products comply with all relevant local, regional and maintained in accordance with regulations.
• On-site chemical management.
national regulations in the markets where they are sold. This
includes adherence to regulations such as California Proposition • Appropriate chemical waste disposal.
65; the European Union’s (EU) Restriction of Hazardous Substances
Carrier 2024 Sustainability and Impact Report 53
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Corporate Our Giving Focus Areas
Social
Carrier supports organizations that promote:
Responsibility
Planet Sustainable solutions designed • Climate resiliency and energy conservation
for the planet’s greatest
• Cold chain development and food waste reduction
environmental challenges.
People A skilled and inclusive workforce, with • STEM, HVAC, refrigeration and trade technician
GRI 2-29, 3-3, 203-1 a focus on STEM and capabilities of the education and career development
future needed to support intelligent
• Workforce inclusion
In accordance with our Philanthropic Donations Policy, climate and energy solutions.
Carrier supports organizations that promote the planet,
people and communities in which we live, work and Communities Advancement of the communities in • Healthy indoor environments advocacy
operate. We strive to bring our unique knowledge and which we live, work and operate. • Hunger relief
expertise to communities where we can have the
greatest impact. • Humanitarian crises support1
• Employee matching gifts program
In 2023, we supported civic, cultural, economic and social
welfare organizations around the world. We invested
over $10.2 million in communities through cash and
in-kind donations, and through the Carrier Matching Gifts
Program, a dollar-for-dollar charitable donation program 2023 Community Impact
in the United States. Our employees embody Carrier’s
$10.2M+ $2.4M+ ~12K
spirit of advancement by donating and volunteering
across the world. We exceeded our first full-year volunteer
program goal with nearly 12,000 volunteer hours logged.
invested in communities through contributed to colleges and universities employee volunteer
cash and in-kind donations, and in support of research, scholarships hours logged through our
the Carrier Matching Gifts Program and educational programs volunteer program
$2.9M+ $1.4M 1,150+
in product donated for invested in communities through organizations supported
charitable purposes the Carrier Matching Gifts Program, through the Carrier Matching
doubling employee donations Gifts Program
1
Evaluated case by case by a Rapid Response Committee.
Carrier 2024 Sustainability and Impact Report 54
Introduction Environment Sustainable Innovation Social Governance Indices
Planet Urban Green Council
Carrier and Urban Green Council are working toward
decarbonizing buildings for more resilient communities.
Habitat for Humanity Through our partnership, we supported an interactive public
Carrier joined forces with Habitat for Humanity Japan to clean portal for New York City building data that tracks energy use to
up the base of Mount Fuji. The number of climbers and trail litter help the city implement policies that promote energy efficiency
increased in recent years, causing concern for the local ecosystem. and reduce greenhouse gas emissions. Carrier also supported
Employee volunteers and students from a local university chapter the Green Professional (GPRO) Training certificate program, which
of the organization picked up trash to improve conditions and helps those who build, renovate and operate buildings learn how
contribute to the local community. to make them sustainable, resilient and healthy.
~17K 130+ 47%
square meters of land cleaned up by Carrier and participants in nine Green of participants came from
local student volunteers at the base of Mount Fuji Professional Training classes minority- and women-owned
sponsored by Carrier business enterprises
Learn more
Learn more
Indian Green Building Council U.N. World Food Programme
We continued our long-term support of the Indian Green In Ghana, construction progressed on the new United
Building Council Green Your School Programme. Students Nations World Food Programme Transport Training Centre,
submitted ideas to make their schools more environmentally a collaboration among Carrier, other leading companies and
responsible. The winning schools received grant money to the World Food Programme. In 2023, the center trained nearly
implement sustainability projects and transform their spaces. 200 participants from across the humanitarian community
and the private sector in West Africa via both in-person and
~100 virtual sessions to enhance logistics capacities and refrigerated
transport operations in the region.
schools received grant money to implement
sustainability projects since 2007, with Carrier’s support
~200
participants trained to enhance logistics capacities
Learn more and refrigerated transport operations
© World Food Programme.
Learn more
Introduction Environment Sustainable Innovation Social Governance Indices
People Communities
Building Talent Foundation Habitat for Humanity
Carrier is creating a pipeline of future HVAC technicians Carrier continued to support Habitat for Humanity through
through a collaboration with the Building Talent Foundation. volunteer efforts, financial contributions and product donations
The programs promote careers in the trades to youth and from our Healthy Homes suite of indoor air quality and fire safety
underrepresented populations, align training with industry needs solutions. Employees participated in home builds and volunteer
and persistent labor shortages, and build engagement through projects as part of National Healthy Homes Month, the Carter
career advancement opportunities. Work Project, National Intern Day, a veteran build and more to
help increase access to healthy and safe indoor environments.
~800 650+
people placed into HVAC-related jobs in the United
States over a period of three years by the Building Carrier employees participated in Habitat for
Talent Foundation, with Carrier’s support Humanity home builds and volunteer projects
across the United States and Japan
Learn more Cause For Alarm
Learn more Our Kidde business continued to grow its award-winning Cause
For Alarm fire safety education initiative to support communities
For Inspiration and Recognition of Science and Technology that are at higher risk of residential fires. The program expanded
(FIRST) beyond the United States to Canada, Australia and the United
Kingdom, educating families about the importance of having
We expanded our involvement with the global youth robotics working smoke alarms and practicing fire safety at home. Kidde
organization For Inspiration and Recognition of Science and donated fire safety products to communities in need and partnered
Technology (FIRST). The organization encourages students ages with organizations around the world to raise fire safety awareness.
4 to 18 to develop science, technology, engineering and math skills
80K+ 3
for future careers. Carrier supported programs around the world,
and employees mentored teams and volunteered at competitions.
smoke alarms donated additional countries
500+ through the Cause For Alarm
and Operation Save a Life
included in the Cause For Alarm
fire safety education initiative,
students mentored by Carrier employees campaigns growing international impact
leading FIRST Robotics Competition and
Tech Challenge teams
Learn more
Learn more
Carrier 2024 Sustainability and Impact Report 56
Introduction Environment Sustainable Innovation Social Governance Indices
Governance
Our corporate governance provides the framework Leadership 58
for building a culture of integrity and ethical behavior, Enterprise Risk Management 60
guiding our actions and governing the relationships Environmental, Health & 61
among our employees, with our customers and in Safety Management
our communities. Human Rights 62
Responsible Supply Chains 64
Ethics & Compliance 66
Government Relations 68
Corporate Policy Manual 70
Carrier 2024 Sustainability and Impact Report 57
Introduction Environment Sustainable Innovation Social Governance Indices
Leadership Sound Corporate Governance
GRI 3-3
Carrier is committed to strong corporate governance practices. Our governance framework enables
GRI 2-9, 2-11, 405-1
our independent, experienced and accomplished directors to provide advice, insight and oversight that
Carrier’s Board of Directors oversees the strategic direction of the company to advance the long-term promote the long-term interests of the company, our shareowners and other stakeholders.
interests of the company and our various stakeholders. As of July 1, 2024, our nine-member Board of
Directors included seven independent directors. Our Executive Leadership Team executes Carrier’s Oversight Share Ownership
strategic and operating plans and comprises the primary organizational functions and leaders of our • Regular reviews of strategic direction • Rigorous share ownership requirements
business segments. and priorities. for directors and senior management.
• Regular reviews of significant risks; • Directors required to hold company-
active oversight of Enterprise Risk granted equity until retirement.
33% 40% 78% •
Management (ERM) program.
Annual review of Board policies,
• Hedging, short sales and pledging of
Carrier securities prohibited.
Board of Director diversity1, 2 Board leadership diversity1, 2 Board of Director independence2 governance practices and
committee charters.
Shareowner Rights
• Annual Board, committee and director • Eligible shareowners can make
evaluations; regular refreshment actions. proposals and nominate directors
through proxy access.
Independence • Shareowners may act by written consent.
• 78% of Board members are
• 15% of shareowners may call
independent directors.
special meetings.
• Robust Lead Independent Director
• No supermajority shareowner
with explicit responsibilities.
voting requirements.
• Regular meetings of
independent directors led
Engaged Board
by Lead Independent Director.
• 98% attendance at Board
meetings in 2023.
Elections
• 96% attendance at committee
• Annual election of all directors.
meetings in 2023.
• Majority voting for directors in
uncontested elections.
1
Female and racially diverse.
2
As of 7/1/2024.
Carrier 2024 Sustainability and Impact Report 58
Introduction Environment Sustainable Innovation Social Governance Indices
Sustainability Governance Sustainability Governance at Carrier
& Oversight Board of Directors
Full Board and committees with environmental, social and governance-related responsibilities
GRI 2-9, 2-12, 2-13, 2-14, 2-17, 3-3
Our approach to sustainability governance is embedded into our
culture, including at the highest levels and across all business
Accountability
Executive Leadership Team
segments and functions. Our Corporate Governance Principles & Oversight
and the charters of each of our committees outline the Board’s
oversight of our Sustainability and Impact program, including
sustainability initiatives. The full Board has primary responsibility for
Carrier’s Sustainability and Impact program, goals and objectives, Climate Action and Sustainability and Impact Program
including climate-related matters, with certain elements delegated Sustainability Council Management Office (PMO)
to our committees to leverage their respective areas of expertise.
Chair: Chief Technology and Sustainability Officer Chair: Chief Legal Officer
This approach reflects our belief that sustainability and Carrier’s Sustainability and Council members: functional program owners Members: functional program owners
growth strategy are inseparable and underscores our commitment
to our stakeholders and the stewardship of our planet.
Impact Strategy
Carrier’s Proxy Statement provides a comprehensive overview of
Carrier’s Board oversight. The Carrier Executive Leadership Team
is responsible for our sustainability priorities and overseeing the Business leadership
execution of our 2030 sustainability and impact goals.
Implementation Functional teams
Carrier 2024 Sustainability and Impact Report 59
Introduction Environment Sustainable Innovation Social Governance Indices
Enterprise Risk The Board’s Role in Risk Management
Management
GRI 2-9, 2-14, 3-3
The full Board is responsible for Carrier’s strategic risks, while the Audit Committee oversees the
company’s ERM policies and practices. Responsibility for the oversight of specific risk categories is
allocated among the Board and its committees as follows:
GRI 3-3
Full Board of Directors
As a global company, Carrier encounters an extensive range of risks, including compliance,
financial, geopolitical, legal, operational, regulatory, reputational and strategic. Within these • Major strategies and business objectives, including Carrier's Sustainability and Impact program and related goals.
broad categories, specific risks include climate impacts; cybersecurity; the competitive • Significant risks and risk management activities, including climate-related risks, pursuant to Carrier’s ERM program.
landscape (including disruptive technologies); human capital management (including talent
• Succession planning.
acquisition, development and retention); logistics and supply chain; and the impact of
disruptive events (including natural disasters and pandemics).
To manage these and other risks, we have implemented an enterprise risk management Audit Compensation Governance Technology
program, which is a companywide effort that is managed by senior executives and overseen Committee Committee Committee & Innovation
by the Audit Committee and Board to identify, assess, manage, report and monitor enterprise
risks that may affect our ability to achieve the company’s objectives and strategy.
• ERM policies and • Compensation and • Charitable and Committee
practices. benefit policies. philanthropic
policies. • Developments
As part of the ERM program, ownership of enterprise risk is assigned to the appropriate • Capital structure and • Compensation of and trends in
significant capital select senior leaders. • Conflicts of interest. technology and
business segment or corporate function that is responsible for developing and implementing appropriations. digital, including
comprehensive mitigation plans. The Board reviews these risks and mitigation plans annually • Compensation • Corporate
sustainability.
in conjunction with Carrier’s strategic plan. Mitigation plans are reviewed for effectiveness • Compliance program. plan design and governance.
compensation- • Disruption risk
and include a broad range of measures to manage and reduce risk, including adjustments • Cybersecurity risks.
related risk.
• Director
by technology
to strategic and business initiatives, research and development, product design, increased independence.
• Financial reporting and digital
• Employee
protections for our facilities and supply chain, and enhanced internal controls, including and related internal • Environment, developments.
engagement
employee and contractor training. controls, including
and Inclusion &
health and safety.
• Effectiveness of
climate- and
Diversity programs. • Government Carrier’s technology
The Board and committees also review enterprise risks with senior management on an cybersecurity-related
relations, including and digital strategy
disclosures. • Incentive plan
ongoing basis throughout the year. Each committee has primary risk oversight responsibility Carrier PAC and innovation
performance metrics
in the areas that align with its focus and charter responsibilities as described in the table • Foreign exchange, and political programs.
and goals, including
at right. At each regular meeting, or more frequently as needed, the Board receives and interest rates and raw expenditures.
those related to
material hedging.
considers committee reports that provide additional detail on risk management issues and implementation of • Positions on
management’s response to them. For example, cybersecurity risk is an enterprise risk about • Significant Carrier’s Sustainability public issues.
operational risks. and Impact program.
which the Audit Committee and Board oversee, review and receive regular briefings. • Product integrity.
• Pay equity reviews.
Carrier 2024 Sustainability and Impact Report 60
Introduction Environment Sustainable Innovation Social Governance Indices
Environmental, Culture of Environmental
Our EH&S organization, governance and performance
expectations include:
Responsibility
Health & Safety
• Management responsibility and Board-level EH&S oversight.
• Integrating EH&S management across the enterprise.
Training
Management
• Compliance with relevant EH&S regulatory requirements
As part of our focus on talent and career development,
in the locations we operate.
Carrier maintains a common global learning portal, giving
• A formalized EH&S risk management process. employees exposure to a range of environmental topics, such
as environmental sustainability, climate change and energy
• Data and document management, including performance
management, waste management, hazardous waste, circular
measurement, corrective action monitoring and
GRI 3-3, 403-1, 403-8 economy, and water conservation and management. This platform
metrics reporting.
is managed by Carrier’s learning and development team and is
The health and safety of our employees and contractors and • Audit program validating compliance to regulatory accessible at any time to all full- and part-time employees.
protection of the environment are top priorities across our requirements and internal standards.
operations. Carrier’s Environmental, Health & Safety (EH&S) In addition, job-specific health, safety and environmental training,
• Best-practice sharing on EH&S topics and issues.
Policy, Operating System and programs help protect our people such as hazardous waste and chemical compliance, is provided on
and minimize impacts to the environment. The policy and • Employee training and engagement. a site-by-site basis to enhance safety and regulatory compliance
system governs all Carrier employees and contractors across • Industry-leading processes and practices. and inform job-specific tasks. This training is provided during
manufacturing, service, warehouse, research and development site inductions and throughout the year as part of Carrier’s EHS
and office locations. Key leading and lagging EH&S indicators are defined to Moment program.
measure performance and improvement and inform our 2030
Environment, health and safety is overseen by the Governance sustainability and impact goals. Our performance and systems Management of Change
Committee of Carrier’s Board of Directors, managed by our EH&S are regularly monitored, audited and reviewed to identify trends Carrier’s Management of Change process integrates EH&S risks
team and implemented at the operational level. We implement our and opportunities for improvement. Decisions and actions and impacts into the Product Development Process. This allows
EH&S Policy through our EH&S Operating System, which provides are documented, and records are retained. Outputs of the EH&S risks to be identified and managed consistently across
a continuous improvement framework grounded in integrated performance evaluation process are used as part of the annual Carrier in the development of new products. The Management
planning and performance measurement. Carrier uses a third-party business planning cycle to define EH&S strategic objectives, of Change process involves Carrier project managers, and EH&S,
software provider to capture data across our facilities and service goals and improvement targets. Operations and Engineering personnel who identify, prioritize,
locations. This data helps us track, monitor and assess our EH&S
mitigate and control risks introduced due to changes in operations
metrics, including greenhouse gas emissions, energy, water, waste,
Certification
associated with new products.
and health and safety.
Learn more about how we are addressing the health and safety
The EH&S Operating System structure is aligned with ISO 14001
When feasible and where required, we pursue environmental, of our employees and contractors and working to minimize our
and ISO 45001 management system standards and follows the
health and safety management certifications at Carrier-owned environmental footprint.
Plan-Do-Check-Act cycle.
and leased facilities worldwide. At the end of 2023, 22 facilities
were ISO 14001 certified for environmental management, and
20 facilities were ISO 45001 certified for occupational health
and safety.
Carrier 2024 Sustainability and Impact Report 61
Introduction Environment Sustainable Innovation Social Governance Indices
Human Rights Global Human Rights Policy
GRI 2-23, 205-2, 407-1, 408-1
Human Rights in
the Workplace
Carrier’s Human Rights Policy is owned by our Chief Human What we do is critical, and how we act matters. That is why our
GRI 3-3
Resources Officer and Chief Legal Officer, and covers our existing Code of Ethics focuses on the core values that serve as the
Respect for human rights is foundational to Carrier’s values and and prospective employees, customers, contractors, suppliers and foundation of our culture: respect, integrity, inclusion, innovation
The Carrier Way. Our Human Rights Policy; Environmental, Health our communities. and excellence.
& Safety Policy; Global Ethics and Compliance Program, including
We respect and protect human rights and labor standards Our values dictate how we perform every day, including how we
our Code of Ethics, Human Trafficking Policy Statement, California
consistent with the United Nations Guiding Principles on Business interact with each other:
Transparency in Supply Chain Act policy, nondiscrimination and
and Human Rights (2011), the Universal Declaration of Human
harassment prevention; and Supplier Code of Conduct inform our
Rights (1948) and the International Labor Organization’s 1998 • We treat others the way we want to be treated.
overall approach to responsible business practices.
Declaration on Fundamental Principles and Rights at Work.
• We take action to ensure that no one feels unsafe or
We require our employees and business partners to meet our intimidated in our workplaces.
Our Human Rights Policy covers the following areas:
expectations for human rights, ethics and compliance.
• We strive to create an environment where we all feel included,
• Anti-corruption regardless of our differences.
• Child and forced labor • We embrace diversity and the benefit of different viewpoints
• Compensation and benefits and perspectives.
• Compliance with laws • We value our employees on their merits, skills and engagement.
• Conflicts of interest • We do not tolerate any discrimination.
• Data privacy Each year, we require our employees to certify they have read
• Discrimination and will comply with our Code of Ethics. Compliance with the
requirements of the Code of Ethics is expected behavior for all
• Freedom of association
Carrier employees. Violations of these requirements will result
• Harassment-free workplaces in appropriate corrective action. All Carrier employees are also
required to participate in annual training. Learn more about our
• Health and safety
ethics and compliance training.
• Suppliers
Additionally, we invest in creating safe work environments,
These topics and their associated programs are implemented and continuous monitoring and performance improvement, ongoing
managed by relevant teams across our global operations, including training and a strong safety culture to deliver safe, reliable,
our Human Resources; Environmental, Health & Safety; Supply compliant and sustainable workplaces for our employees and
Chain; and Ethics and Compliance teams. contractors. Learn more about our health and safety program.
Carrier 2024 Sustainability and Impact Report 62
Introduction Environment Sustainable Innovation Social Governance Indices
Human Rights Across Child Labor & Forced or Compulsory Labor
GRI 408-1
Modern Slavery & Human Trafficking
Carrier’s Human Trafficking Policy Statement and Modern Slavery
Our Value Chain Carrier’s Human Rights Policy prohibits child or forced labor across
Act Statement outline our commitment to compliance with
applicable laws and regulations prohibiting human trafficking.
our operations, and we require that our business partners share this Our Supplier Code of Conduct further details our prohibition on
Carrier’s Supplier Code of Conduct sets forth our expectations
commitment. Potential new hires across Carrier’s operations are modern slavery and human trafficking.
for each of our product and service suppliers and aligns with
required to provide valid identification, and it is matched against
the expectations we maintain for our own directors, officers,
employees and representatives.
government data sources. Conflict Minerals
SASB RT-EE-440a.1
Through our Supplier Code of Conduct, Carrier requires that
In alignment with our Human Rights Policy, Carrier’s Supplier Code
suppliers ensure child labor is not used in the performance of their
of Conduct includes the following areas: Carrier has established a conflict minerals compliance program
work in alignment with the principles of applicable International
designed to conform, in all material respects, to the internationally
• Child and forced labor Labor Organization Conventions. The Code of Conduct further
recognized due diligence framework established by the
prohibits suppliers from engaging in the use of forced or
• Compensation Organization for Economic Cooperation and Development.
compulsory labor.
We support industrywide initiatives that raise awareness for
• Compliance with laws responsible sourcing of conflict minerals and support the
Additionally, Carrier uses EcoVadis, a third-party risk assessment
• Ethics and Compliance Program development of conflict-free sourcing such as the Responsible
platform and engagement tool, to evaluate top factory suppliers on
Minerals Initiative, where Carrier serves as a partner member.
• Freedom of association an ongoing basis on a range of sustainability topics. The screening
questionnaire includes a focus on labor practices, human rights
• Harassment and abusive behavior Our Conflict Minerals Policy describes our preference to source
and ethics. The platform allows Carrier to identify potential human
tantalum, tin, tungsten and gold (known as 3TG) originating in
• Health and safety rights-related risks across our top factory suppliers. Learn more
the Democratic Republic of the Congo region from a smelter or
about our responsible supply chain program.
• Human trafficking refiner validated as conflict-free by an independent third party.
Because Carrier does not source 3TG directly from smelters or
• Misconduct and reporting Carrier maintains a sourcing framework that requires our suppliers
refiners, engagement with our suppliers is a fundamental element
to demonstrate certain qualifications. This framework includes
• Nondiscrimination of our efforts to comply with the legislation. Our Form SD Conflict
long-term agreements and/or standard terms and conditions that
Minerals Disclosure and Report is in our corporate filings.
prohibit forced labor. Carrier conducts continuous monitoring over
We market our products and services to consumers, businesses
tier 1 direct spend suppliers, whereby companies that are known to
and governments worldwide. Carrier has integrated human rights- Grievance Mechanism
have human rights violations are flagged.
related clauses into our Standard Terms & Conditions of Purchase.
GRI 2-16
We also employ an automated, real-time, third-party software
solution to scrutinize essential relationships, such as buyers, sellers
Learn more about reporting and transparency.
and our top-tier suppliers. This software uses advanced algorithms
to identify high-risk stakeholders and parties in countries listed for
human rights issues or other unethical behavior, cross-referencing
global denied or sanctioned party lists. Carrier receives daily alerts
for potential risks, implementing actions and remedies to minimize
potential for human rights violations across our value chain.
Carrier 2024 Sustainability and Impact Report 63
Introduction Environment Sustainable Innovation Social Governance Indices
Responsible
Our program achievements include:
80%+ 350+ 100+ <1%
Supply Chains of direct supplier
spend covered
suppliers
participated in
Carrier buyers
trained on the
of our direct spend
is with high-risk
by sustainability our webinars and supply chain suppliers, as defined
screening sustainability- sustainability by EcoVadis, down
GRI 308-1, 308-2, 414-2
focused sessions program from 5% in 2022
Our suppliers are a critical part of the global Carrier team. From their innovation to their commitment
to quality, suppliers work with us every day to meet and exceed customer needs and to help Carrier
achieve our sustainability and impact goals. Our suppliers include small to medium enterprises and
multinational corporations that provide materials, components, services and logistics support.
Strengthening Supplier Engagement
GRI 2-29 , 414-1
Carrier achieved our goal to establish a responsible supply chain program and assess key factory
suppliers against program criteria. We will continue to maintain this program and support its As part of the Carrier Quality Systems Audit, new suppliers are screened against sustainability-related
four-pillar strategy: metrics to understand the environmental and health and safety management systems and processes
they have in place to manage risk and track compliance. The screening questionnaire also focuses
1 Develop a clear understanding of sustainability performance across our supply chain.
on recycling efforts and commodity management. By incorporating these metrics into our screening
questionnaire, we aim to manage sustainability-related risk effectively.
Carrier also uses EcoVadis to evaluate top factory suppliers on an ongoing basis. The sustainability
2 Strengthen supplier engagement and sustainability performance.
screening questionnaire includes a focus on labor practices, human rights, ethics, energy, climate and
water management. To encourage participation and continuous improvement, Carrier mandates that
Embed sustainability insights and criteria across our procurement procedures, Preferred Suppliers maintain a minimum score of 45 on the EcoVadis assessment from the beginning
3 processes and tools. of the supplier relationship.
4 Lead with a world-class program for supply chain sustainability.
In 2023, we continued to advance our supply chain sustainability program to improve supplier
performance and reduce potential sustainability risks across the supply chain.
Carrier 2024 Sustainability and Impact Report 64
Introduction Environment Sustainable Innovation Social Governance Indices
Our supplier engagement strategy is designed to align with Carrier’s sustainability and impact strategy,
and our Supplier Code of Conduct, focusing on the following key areas: Embedding Sustainability Into Our Procedures,
Processes & Tools
Training Our Annual Global Conferences
GRI 408-1
Commodity Managers
Carrier holds annual global and regional
Carrier has embedded key sustainability and human rights principles into how we procure and work
Our commodity managers play a pivotal supplier conferences that serve as
with our supply chain. Through our Supplier Code of Conduct, we set requirements on topics such
role in supporting our sustainability platforms to effectively communicate
as environmental management, health and safety management, business ethics, nondiscrimination,
efforts. As part of our commitment to our sustainability expectations,
freedom of association, compensation, child labor and human trafficking.
fostering awareness and compliance, creating a forum for open dialogue
we regularly provide them with ongoing and collaboration among our company
Our Supplier Standard Terms and Conditions state that suppliers should strive to achieve excellence in
sustainability training. This training equips and our suppliers. By facilitating direct
environmental and social performance, and must acknowledge Carrier’s 2030 sustainability and impact
them with the necessary knowledge engagement, we seek to enhance
goals to reduce waste, emissions, energy consumption and more.
and empowers them to champion our mutual understanding and underscore
sustainability initiatives within their the significance of aligning with our Within our Supplier Quality Manual, we require that suppliers recognize the value in supporting our
respective areas of control. sustainability objectives. sustainability initiatives and agree to take action to support Carrier’s 2030 sustainability and impact
goals, including collecting information throughout their own supply chains, participating in assessments
and responding to Carrier’s requests for information.
Risk Mapping
Sustainability-Focused In-Person Supplier Support
Recognizing that not all suppliers face the same challenges or operate within identical contexts,
Supplier Webinars we conduct sustainability risk-mapping assessments on suppliers identified as presenting potential
Our dedication to sustainability extends
beyond assessments. We actively engage risks. Through these exercises, we systematically identify and prioritize key suppliers and regions that
In collaboration with EcoVadis, Carrier hosts
with all of our high-risk suppliers in an effort require focused attention regarding sustainability risks. This strategic approach allows us to tailor our
global webinars in local languages and time
to improve their sustainability performance. engagement efforts, ensuring that we address the most pertinent sustainability concerns in a targeted
zones, fostering accessibility and inclusivity
Through in-person assessments, we provide and impactful manner. By proactively identifying risks, we aim to collaboratively work with suppliers to
for all stakeholders. These webinars offer
valuable insights for gap assessment and implement effective mitigation strategies and collectively contribute to a more sustainable and resilient
insights into specific sustainability topics
collaborate with suppliers to develop supply chain ecosystem.
and deliver tailored messaging by location.
tailored action plans. This hands-on
Additionally, we conduct focused sessions approach helped us reduce our direct
tailored to smaller audiences, addressing spend with high-risk suppliers, as defined
their specific needs. This approach allows by EcoVadis, from 5% in 2022 to less than
Carrier to connect more personally with 1% in 2023, showcasing the tangible impact
suppliers and deliver targeted support and of our efforts.
collaborative engagement.
Carrier 2024 Sustainability and Impact Report 65
Introduction Environment Sustainable Innovation Social Governance Indices
Supplier Excellence
We count on our suppliers to meet the same high standards for quality, delivery, cost and customer
Ethics & Compliance
satisfaction that we place on ourselves. Our Carrier Alliance program rates our suppliers on key metrics
and works to develop long-term business relationships with our Carrier Preferred-level suppliers. GRI 2-16, 2-25, 205-1 | SASB RT-EE-510a.1
The first Carrier Corporate Ethics policy was created in 1932 by our founder, Willis Carrier. Almost a
Suppliers can reach Carrier Preferred status by committing to operational excellence and to century later, the same ideals remain embedded in our culture.
meeting cost and sustainability targets as follows:
At Carrier, we expect high performance and high integrity from our employees and everyone with
whom we conduct business. It is never acceptable to compromise our values or integrity to achieve our
≥98% on-time delivery for the last 12 months business objectives. We are a company committed to always doing the right thing. We maintain sound
governance standards as reflected in our Corporate Governance Principles, Code of Ethics, Corporate
Policy Manual, strong internal controls, transparent financial reporting and a systematic approach to
Driving toward zero defects enterprise risk management.
Maintaining an EcoVadis sustainability score ≥45 Global Ethics & Compliance Program
GRI 2-25, 2-26, 2-27, 205-1, 205-2
Supplier Inclusion Code of Ethics
We aim to be world-class in everything we do – including our compliance with all laws and regulations
GRI 414-1 and our Code of Ethics, which applies everywhere we do business. The Code of Ethics integrates
our core values that serve as the foundation of our culture: respect, integrity, inclusion, innovation
Consistent with the nondiscrimination expectations in our global Supplier Code of Conduct, we and excellence. Every employee is responsible for ensuring that Carrier’s business is conducted in
recognize supplier inclusion as an essential part of our success. We have established relationships compliance with the law, Carrier’s Corporate Policy Manual and Carrier’s Code of Ethics.
with qualified diverse suppliers as part of our global supply chain strategy.
Training
All Carrier employees are required to participate in annual tailored ethics and compliance training
$309M
reflecting the results of regular compliance risk assessments. Most employees receive their training
through our online program, where they complete foundational ethics and compliance certifications
and training courses. Employees receive periodic anti-corruption refresher training if they hold a
of products and services purchased position that presents a higher level of corruption risk.
from first- and second-tier small and
diverse-owned businesses in the
United States in 2023
Carrier 2024 Sustainability and Impact Report 66
Introduction Environment Sustainable Innovation Social Governance Indices
Reporting & Transparency
Carrier is committed to a safe reporting environment that is free
Fair Competition Data Privacy
of discrimination, fear of bullying or other negative consequences. GRI 206-1 Carrier values and respects the privacy of the people from
Carrier has zero tolerance for retaliation in any form. Anyone whom it collects, processes or transfers personal data. We take
engaging in retaliatory behavior against those who make a report Competition fosters better products and services, driving Carrier to appropriate steps to safeguard personal data under our control
in good faith will be subject to disciplinary action, up to possible be more efficient and more innovative. We compete vigorously and from unauthorized access, misuse, impermissible disclosure,
termination of employment. When employees, contractors and legally, not only because it is good for our business, but because it alteration or unauthorized destruction. Carrier discloses personal
partners observe or suspect something that contradicts Carrier’s is the right thing to do. Every employee is responsible for ensuring data only to employees and third parties having a legitimate
Code of Ethics, Carrier policies or the Supplier Code of Conduct, Carrier complies with all applicable competition laws. business need to know, as permitted by applicable law, and
we encourage them to speak up. We provide employees and our under appropriate legal and contractual restrictions.
business partners access to
Carrier’s Speak Up program, Cybersecurity Our comprehensive data privacy compliance program provides
appropriate controls on what personal information we collect,
including the option to
anonymously report ethical Our Cybersecurity team leads a forward-looking program to store and process and how we safeguard it.
concerns online or by phone. protect Carrier from constantly evolving cyber threats. Our cyber
defense strategy seeks to prevent, detect and respond to cyber Our approach involves:
Continuous Improvement risks using advanced security technologies and best practices that
align with NIST 800-53, ISO 27001 and other industry practices. • Complying with all applicable data privacy laws.
We audit our operations on a regular basis to ensure compliance
and continuous improvement. All reports of violations are • Completing privacy impact assessments for new and modified
Our security team remains vigilant and continually improves cyber tools, service providers, and products and services that involve
investigated thoroughly, fairly and impartially with the objective
capabilities throughout our organization, following U.S. Securities collecting or processing personal information.
of identifying actions for continuous improvement.
and Exchange Commission guidance on cybersecurity. We conduct
regular assessments to validate defensive measures and use a • Completing Privacy by Design assessments to consider privacy
Anti-Corruption comprehensive risk management framework to enable effective
escalation and response. We expanded security awareness •
aspects as an integral part of designing new products.
Performing annual self-assessments of our data privacy
training and automated phishing simulations, and implemented compliance program.
GRI 205-1 l SASB RT-EE-510a.1
an Enterprise Defender program, which empowers employees to
detect and report suspicious cyber activity. Our investments in • Using appropriate security safeguards.
Carrier conducts business solely on the merits. We will not
improperly influence anyone to obtain or retain business or secure third-party risk management, vulnerability management, threat • Adopting and maintaining detailed policies and Binding
any other advantage, nor allow anyone to do so for our benefit, intelligence and 24/7 security operations are all intended to Corporate Rules, which are rules for data privacy compliance
in any market – public or private – anywhere. In standing by our address cyber risks and threats. approved by European regulators.
principles and complying with our Code of Ethics and company • Providing regular training within the organization to raise
The Audit Committee of Carrier’s Board of Directors reviews
policies, we fight corruption and support the global development awareness and foster compliance with applicable data privacy
Carrier’s privacy and cybersecurity compliance programs, and full
of fair markets. Our success relies on abiding by our core values – rules and requirements.
Board reviews are held as needed. An additional level of senior-level
regardless of what might be seen as customary or acceptable in a
management oversight was added with the creation of the Critical • Using Internal Audit frequently to identify potential data
given market.
Threat Committee in 2023 to oversee cyber risks and incidents privacy risks.
deemed critical to the company.
Carrier 2024 Sustainability and Impact Report 67
Introduction Environment Sustainable Innovation Social Governance Indices
Government Relations
GRI 2-23, 2-26, 2-29
Carrier engages in political activity and public policy advocacy on issues that impact the company’s
business – whether at the local, state or federal level in the United States, or with foreign governments
and international governmental organizations.
The Board believes that participating in the legislative and regulatory process is an important part of
responsible corporate citizenship and that Carrier and its employees have a legitimate interest in public
policy debates. The Governance Committee and Board review and monitor the company’s government
relations activities, including those of the Carrier PAC. These activities are governed by and conducted
in accordance with the standards articulated in our Code of Ethics and corporate policy on Government
Relations, both of which are available on the company’s website.
Carrier’s government relations initiatives are intended to educate and inform officials and the public on
a broad range of public policy issues that are important to our business and consistent with the best
interests of the company, our shareowners and our other stakeholders. These initiatives are not based
on the personal agendas of individual shareowners or Carrier’s directors, officers or employees.
The company does not make political contributions to candidates for U.S. federal office and, as a matter
of policy, does not contribute to candidates for state or local office in the United States or for offices
in foreign countries. The Carrier Political Action Committee, which is entirely funded by voluntary
contributions, is nonpartisan and contributes to candidates for federal office who are supportive of
Carrier’s corporate business interests and public policy goals, regardless of political party.
Introduction Environment Sustainable Innovation Social Governance Indices
Engagement on In November 2023, Carrier participated
in the White House Roundtable on Home
Climate Action Electrification to discuss ways Carrier can
support lowering energy costs for families and
GRI 2-29 advancing home and building decarbonization.
The roundtable included executives from
companies and nonprofits, other key
Carrier joined the Corporate Coalition for electrification stakeholders and senior White
Innovation & Technology toward Net Zero, House officials. The event was centered
a business alliance dedicated to helping around what is needed to implement
countries meet decarbonization and climate the administration’s home and building
change goals, and we supported the Global decarbonization goals, with the discussion
Cooling Pledge, along with governments and focusing on grid and energy management,
other organizations. Led by the United Nations multi-stakeholder coalition building and
Environment Programme’s Cool Coalition, community engagement, and implementation
the pledge launched at the COP28 climate of the Inflation Reduction Act.
change conference in Dubai. The pledge raises
international cooperation through collective
targets for reducing emissions, improving energy
efficiency and climate-action approaches to
Carrier worked extensively with other leading In April 2023, Carrier participated in a White Memberships &
Associations
companies that provide energy-efficient House Roundtable on Heat Pump Manufacturing
cooling and increasing access to sustainable
technologies for buildings to advocate for and Deployment. The event focused on the
cooling for those who are vulnerable.
an update to the draft European Union Energy president’s climate and manufacturing agenda,
Performance of Buildings Directive that later including the administration’s efforts to grow GRI 2-28
passed in early 2024. American heat pump manufacturing and
deployment, expand manufacturing and clean Carrier maintains strategic memberships,
Carrier and the Greener Reefers in International
The new directive is an important step forward energy jobs, decrease building emissions and partnerships and associations while evaluating
Maritime Transport initiative of the Deutsche
for buildings in Europe, setting a road map strengthen American competitiveness. opportunities for additional contributions and
Gesellschaft für Internationale Zusammenarbeit
for the nonresidential building sector, binding leadership. Through these memberships, our
(GIZ) GmbH have agreed to collaborate to
efficiency targets for homes and facilitating The event featured executives and distributors leaders and employees stay at the forefront of
advance cold chain development and training in
energy renovation. from the heat pump industry and senior labor industry best practices, customer needs and
Costa Rica and South Africa. The memorandum
leaders. Attendees included the National Climate regulatory changes as they relate to product and
of understanding was signed at COP28 and
Advisor, Secretary of Energy, Senior Advisor to organizational sustainability. Learn more about
focuses on providing training to technicians
the President for Clean Energy Innovation and our memberships and associations.
for refrigerated containers using natural
refrigerants, such as carbon dioxide. Implementation, and other senior leaders in
the administration.
Carrier 2024 Sustainability and Impact Report 69
Introduction Environment Sustainable Innovation Social Governance Indices
Corporate Policy Manual
GRI 2-23, 2-24, 3-3
Our Corporate Policy Manual is publicly available, covering topics including:
• Anti-Corruption and Anti-Money Laundering • Human Resources
• Antitrust Compliance • Human Rights
• Climate Change • Intellectual Property & Data Protection
• Commercial and U.S. Government • International Trade Compliance
Sales Contracts
• Investor Relations & Complying with
• Conflicts of Interest and Consultation/ Securities & Exchange Laws
Approval Request
• Manufacturing & Logistics
• Data Privacy
• Philanthropic Donations
• Engineering
• Physical & Electronics Security
• Enterprise Risk Management
• Product Cybersecurity
• Environmental, Health & Safety
• Product Integrity
• Finance
• Records Retention & Corporate
• Global Ethics & Compliance Governance Data
• Government Relations and
Procedures & Requirements
Carrier 2024 Sustainability and Impact Report 70
Introduction Environment Sustainable Innovation Social Governance Indices
Indices
Data & Frameworks 72
Carrier 2024 Sustainability and Impact Report 71
Introduction Environment Sustainable Innovation Social Governance Indices
Data & Frameworks
GRI Content Index
Carrier has reported the information cited in this GRI Content Index for the period January 1, 2023, to December 31, 2023, with reference to the GRI Standards.
GRI 1: Foundation 2021.
The GRI Content Index references where progress aligns with the United Nations Sustainable Development Goals (SDGs).
GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 2: The organization and its reporting practices
General Disclosures
2-1 Organizational details Carrier Global Corporation
Form 10-K, p. 9 (Corporate Information)
Carrier is headquartered in Palm Beach Gardens, Florida, U.S.A.
Form 10-K, p. 5 (Business Segments)
2-2 Entities included in the organization’s Carrier Sustainability and Impact Report (About This Report)
sustainability reporting
2-3 Reporting period, frequency and contact point January 1, 2023 - December 31, 2023, except where otherwise noted.
Reporting is conducted annually.
Form 10-K, p. 1 (Cover)
September 23, 2024
Contact: corporateresponsibility@carrier.com
2-4 Restatements of information Carrier Sustainability and Impact Report (About This Report)
2-5 External assurance At this time, Carrier does not have our Sustainability and Impact Report
externally assured.
Carrier 2024 Sustainability and Impact Report 72
Introduction Environment Sustainable Innovation Social Governance Indices
GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 2: Activities and workers
General Disclosures
2-6 Activities, value chain and other business relationships Carrier Sustainability and Impact Report (Carrier Sustainability & Impact Strategy)
Form 10-K, p. 5 (Business Segments)
Form 10-K, p. 7 (Raw Materials and Supplies)
Form 10-K, p. 7 (Joint Ventures and Strategic Relationships)
2-7 Employees Our 2023 workforce was ~53,000 employees.
Carrier Sustainability and Impact Report (Global Workforce)
Summary Data (Employees)
2-8 Workers who are not employees A portion of Carrier’s activities are performed by individuals who are not employees. SDG 8, SDG 10
This includes workers employed or managed by contractors.
Governance
2-9 Governance structure and composition Carrier Sustainability and Impact Report (Sustainability Governance & Oversight) SDG 5, SDG 16
Carrier Sustainability and Impact Report (The Board's Role in Risk Management)
2024 Proxy Statement, pp. 21-25 (Corporate Governance)
2-10 Nomination and selection of the highest 2024 Proxy Statement, pp. 14-15 (Board Refreshment and Nomination Process) SDG 5, SDG 16
governance body
2-11 Chair of the highest governance body Carrier Sustainability and Impact Report (Leadership)
2024 Proxy Statement, p. 12 (Director Independence)
Carrier Global Corporation Director Independence Policy
2-12 Role of the highest governance body in overseeing Carrier Sustainability and Impact Report (Carrier Sustainability & Impact Strategy) SDG 16
the management of impacts Carrier Sustainability and Impact Report (Sustainability Governance & Oversight)
2-13 Delegation of responsibility for managing impacts Carrier Sustainability and Impact Report (Carrier Sustainability & Impact Strategy)
Carrier Sustainability and Impact Report (Sustainability Governance & Oversight)
2-14 Role of the highest governance body in Carrier Sustainability and Impact Report (Sustainability Governance & Oversight)
sustainability reporting Carrier Sustainability and Impact Report (The Board's Role in Risk Management)
2024 Proxy Statement, p. 21 (Corporate Governance)
Carrier 2024 Sustainability and Impact Report 73
Introduction Environment Sustainable Innovation Social Governance Indices
GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 2: 2-15 Conflicts of interest Carrier Corporate Governance Principles, p. 3 (Conflicts of Interests and
General Disclosures Related Person Transactions)
2-16 Communication of critical concerns Carrier Sustainability and Impact Report (Ethics & Compliance – SDG 16
Reporting & Transparency)
Carrier Sustainability and Impact Report (Grievance Mechanism)
2024 Proxy Statement, p. 23 (Board Responsibilities and Meetings)
2-17 Collective knowledge of the highest governance body Carrier Sustainability and Impact Report (Sustainability Governance & Oversight)
Carrier Proxy Statement, pp. 15-20 (Nominees for the 2024 Annual Meeting)
2-18 Evaluation of the performance of the highest Carrier Corporate Governance Principles, p. 6 (Evaluation of the Chief Executive Officer
governance body and/or the Chairman)
2-19 Remuneration policies 2024 Proxy Statement, pp. 24, 28 (Audit Committee, Compensation Committee,
Compensation of Directors)
2-20 Process to determine remuneration 2024 Proxy Statement, pp. 24, 28 (Audit Committee, Compensation Committee,
Compensation of Directors)
2-21 Annual total compensation ratio 2024 Proxy Statement, p. 56 (CEO Pay Ratio)
Strategy, policies and practices
2-22 Statement on sustainable development strategy Carrier Sustainability and Impact Report (A Message From Our Chairman & Chief
Executive Officer)
Carrier Sustainability and Impact Report (Carrier Sustainability & Impact Strategy)
2-23 Policy commitments Carrier Sustainability and Impact Report (Corporate Policy Manual)
Carrier Sustainability and Impact Report (Human Rights)
Carrier Sustainability and Impact Report (Government Relations)
Carrier 2024 Sustainability and Impact Report 74
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GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 2: 2-24 Embedding policy commitments Carrier Sustainability and Impact Report (Corporate Policy Manual)
General Disclosures Each of Carrier's corporate policies for responsible business conduct include
their boundary, allocation of responsibilities and approvals, and are integrated into
organizational strategies, operational policies and procedures.
2-25 Processes to remediate negative impacts Carrier Sustainability and Impact Report (Stakeholder Engagement) SDG 16
Carrier Sustainability and Impact Report (Global Ethics & Compliance Program)
Carrier Ethics and Compliance
Carrier's Speak Up program
2-26 Mechanisms for seeking advice and raising concerns Carrier Sustainability and Impact Report (Stakeholder Engagement)
Carrier Sustainability and Impact Report (Global Ethics & Compliance Program)
Carrier Sustainability and Impact Report (Government Relations)
Carrier Ethics and Compliance
Carrier's Speak Up program
2-27 Compliance with laws and regulations Carrier Sustainability and Impact Report (Global Ethics & Compliance Program)
Form 10-K, p. 8 (Compliance with the Regulation of our Business and Operations)
2-28 Membership associations Carrier Sustainability and Impact Report (Stakeholder Engagement)
Carrier Sustainability and Impact Report (Memberships & Associations)
Stakeholder engagement
2-29 Approach to stakeholder engagement Carrier Sustainability and Impact Report (Stakeholder Engagement) SDG 16
Carrier Sustainability and Impact Report (Passion for Customers)
Carrier Sustainability and Impact Report (Culture & Engagement)
Carrier Sustainability and Impact Report (Strengthening Supplier Engagement)
Carrier Sustainability and Impact Report (Corporate Social Responsibility)
Carrier Sustainability and Impact Report (Government Relations)
Carrier Sustainability and Impact Report (Engagement on Climate Action)
2-30 Collective bargaining agreements 56% (total) of Carrier global employees are covered by a collective SDG 8
bargaining agreement.
Form 10-K, p. 8 (Human Capital Management)
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GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 3: Material Topics 3-1 Process to determine material topics Carrier Sustainability and Impact Report (Materiality Assessment)
3-2 List of material topics Carrier Sustainability and Impact Report (Materiality Assessment)
3-3 Management of material topics Carrier Sustainability and Impact Report (Materiality Assessment)
Carrier Sustainability and Impact Report (Sustainability Governance & Oversight)
Carrier Sustainability and Impact Report (Enterprise Risk Management)
Carrier Sustainability and Impact Report (Corporate Policy Manual)
GRI 201: Economic Performance 201-1 Direct economic value generated and distributed Form 10-K SDG 8, SDG 9
201-2 Financial implications and other risks and Carrier Sustainability and Impact Report (TCFD Disclosure) SDG 13
opportunities due to climate change
201-3 Defined benefit plan obligations and other Form 10-K, p. 57 (Pension and Post-Retirement Obligations)
retirement plans
GRI 203: Indirect 203-1 Infrastructure investments and services supported Carrier Sustainability and Impact Report (Corporate Social Responsibility) SDG 5, SDG 9,
Economic Impacts SDG 11
203-2 Significant indirect economic impacts Carrier Sustainability and Impact Report (Corporate Social Responsibility) SDG 5, SDG 8
GRI 205: Anti-corruption 205-1 Operations assessed for risks related to corruption Carrier Sustainability and Impact Report (Ethics & Compliance) SDG 16
Carrier Sustainability and Impact Report (Anti-Corruption)
Corporate Code of Ethics
205-2 Communication and training about anti-corruption Carrier Sustainability and Impact Report (Ethics & Compliance) SDG 16
policies and procedures Carrier Sustainability and Impact Report (Human Rights)
205-3 Confirmed incidents of corruption and actions taken Carrier strictly prohibits all forms of corruption. In 2023, we know of no incidents SDG 16
or legal cases associated with bribery or corruption, which would have a material
impact on our company or our stakeholders. All allegations of corruption are
investigated thoroughly, fairly and impartially with the objective of identifying
actions for continuous improvement
GRI 206: Anti-competitive 206-1 Legal actions for anti-competitive behavior, anti-trust Form 10-K, p. 90 (Other Matters) SDG 16
Behavior and monopoly practices Carrier Sustainability and Impact Report (Fair Competition)
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GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 207: Tax 2019 207-2 Tax governance, control and risk management Form 10-K SDG 1, SDG 10,
SDG 17
207-3 Stakeholder engagement and management of Carrier Sustainability and Impact Report (Stakeholder Engagement) SDG 10, SDG 17
concerns related to tax
GRI 301: Materials 2016 301-1 Materials used by weight or volume Carrier Sustainability and Impact Report (Design for Sustainability) SDG 8, SDG 12
301-2 Recycled input materials used Carrier Sustainability and Impact Report (Design for Sustainability) SDG 8, SDG 12
301-3 Reclaimed products and their packaging materials Carrier Sustainability and Impact Report (Design for Sustainability) SDG 8, SDG 12
GRI 302: Energy 302-1 Energy consumption within the organization Carrier Sustainability and Impact Report (Energy Management) SDG 7, SDG 8,
Summary Data (Energy) SDG 12, SDG 13
302-2 Energy consumption outside of the organization Carrier Sustainability and Impact Report (Electrification & Energy Efficiency) SDG 7, SDG 8,
SDG 12, SDG 13
302-3 Energy intensity Summary Data (Energy) SDG 7, SDG 8,
Carrier Sustainability and Impact Report (Energy Management) SDG 12, SDG 13
302-4 Reduction of energy consumption Carrier Sustainability and Impact Report (Energy Management) SDG 8, SDG 12,
SDG 13
302-5 Reductions in energy requirements of products Carrier Sustainability and Impact Report (Electrification & Energy Efficiency) SDG 7, SDG 8,
and services SDG 12, SDG 13
GRI 303: Water and Effluents 303-1 Interactions with water as a shared resource Carrier Sustainability and Impact Report (Water) SDG 6, SDG 12
Carrier Sustainability and Impact Report (Providing Water Solutions)
Carrier Sustainability and Impact Report (2030 Sustainability and Impact Goals)
303-2 Management of water discharge-related impacts Carrier Sustainability and Impact Report (Managing Water Quality) SDG 6
303-3 Water withdrawal Summary Data (Water) SDG 6
Carrier Sustainability and Impact Report (Water)
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Introduction Environment Sustainable Innovation Social Governance Indices
GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 303: Water and Effluents 303-4 Water discharge Carrier Sustainability and Impact Report (Water) SDG 6
303-5 Water consumption Carrier Sustainability and Impact Report (Water) SDG 6
GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions Carrier Sustainability and Impact Report (Our Greenhouse Gas Footprint) SDG 3, SDG 12,
Carrier Sustainability and Impact Report (Operational Greenhouse Gas & SDG 13, SDG 14,
Energy Management) SDG 15
Summary Data (Greenhouse Gas Inventory)
305-2 Energy indirect (Scope 2) GHG emissions Carrier Sustainability and Impact Report (Our Greenhouse Gas Footprint) SDG 3, SDG 12,
Summary Data (Greenhouse Gas Inventory) SDG 13, SDG 14,
SDG 15
305-3 Other indirect (Scope 3) GHG emissions Carrier Sustainability and Impact Report (Our Greenhouse Gas Footprint) SDG 3, SDG 12,
Summary Data (Greenhouse Gas Inventory) SDG 13, SDG 14,
SDG 15
305-4 GHG emissions intensity Carrier Sustainability and Impact Report (Operational Greenhouse Gas & SDG 13, SDG 14,
Energy Management) SDG 15
305-5 Reduction of GHG emissions Carrier Sustainability and Impact Report (Reducing Scope 3 Emissions From SDG 13, SDG 14,
Products in Use) SDG 15
Carrier Sustainability and Impact Report (Reducing Operational Emissions)
GRI 306: Waste 306-1 Waste generation and significant Carrier Sustainability and Impact Report (Waste) SDG 3, SDG 6,
waste-related impacts SDG 12, SDG 14
306-2 Management of significant waste-related impacts Carrier Sustainability and Impact Report (Waste) SDG 3, SDG 6,
Carrier Sustainability and Impact Report (Circular Business Models) SDG 12
306-3 Waste generated Carrier Sustainability and Impact Report (Waste) SDG 3, SDG 6,
Summary Data (Waste) SDG 12, SDG 14,
SDG 15
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GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 306: Waste 306-4 Waste diverted from disposal Carrier Sustainability and Impact Report (Waste) SDG 3, SDG 12
Summary Data (Waste)
306-5 Waste directed to disposal Carrier Sustainability and Impact Report (Waste) SDG 6, SDG 14,
Summary Data (Waste) SDG 15
GRI 308: Supplier 308-1 New suppliers that were screened using Carrier Sustainability and Impact Report (Responsible Supply Chains)
Environmental Assessment environmental criteria
308-2 Negative environmental impacts in the supply chain Carrier Sustainability and Impact Report (Responsible Supply Chains)
and actions taken
GRI 401: Employment 401-1 New employee hires and employee turnover Carrier Sustainability and Impact Report (Global Workforce) SDG 5, SDG 8,
Summary Data (Employees) SDG 10
401-2 Benefits provided to full-time employees that are Carrier Sustainability and Impact Report (Employee Well-Being) SDG 3, SDG 5,
not provided to temporary or part-time employees Carrier Benefits SDG 8
401-3 Parental leave Summary Data (Employees) SDG 5, SDG 8
Carrier Sustainability and Impact Report (Employee Well-Being)
Carrier Work With Us
GRI 402: Labor/Management 402-1 Minimum notice periods regarding Carrier complies with all required minimum notifications for each jurisdiction SDG 8
Relations 2016 operational changes in which we do business.
GRI 403: Occupational 403-1 Occupational health and safety management system Carrier Sustainability and Impact Report (Health & Safety) SDG 8
Health and Safety Carrier Sustainability and Impact Report (Environmental, Health & Safety Management)
403-2 Hazard identification, risk assessment, Carrier Sustainability and Impact Report (Health & Safety) SDG 8
and incident investigation Carrier Sustainability and Impact Report (Incident Prevention & Investigation)
403-3 Occupational health services Carrier Sustainability and Impact Report (Occupational Health) SDG 8
Carrier Sustainability and Impact Report (Employee Well-Being)
403-4 Worker participation, consultation, and Carrier Sustainability and Impact Report (Health & Safety) SDG 8
communication on occupational health and safety Health and Safety
Environmental, Health & Safety Policy
Carrier Sustainability and Impact Report (Culture & Engagement)
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GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 403: Occupational 403-5 Worker training on occupational health and safety Carrier Sustainability and Impact Report (Training & Development) SDG 8
Health and Safety
403-6 Promotion of worker health Carrier Sustainability and Impact Report (Occupational Health) SDG 3
Carrier Sustainability and Impact Report (Employee Well-Being)
403-7 Prevention and mitigation of occupational health and Carrier Sustainability and Impact Report (Occupational Health) SDG 8
safety impacts directly linked by business relationships Carrier Sustainability and Impact Report (Product Safety)
403-8 Workers covered by an occupational health and safety Carrier Sustainability and Impact Report (Environmental, Health & SDG 8
management system Safety Management)
403-9 Work-related injuries Carrier Sustainability and Impact Report (Health & Safety) SDG 3, SDG 8,
Summary Data (Employees) SDG 16
Carrier Sustainability and Impact Report (Incident Prevention & Investigation)
GRI 404: Training and Education 404-1 Average hours of training per year per employee Carrier Sustainability and Impact Report (Talent & Career Development) SDG 4, SDG 5,
Summary Data (Employees) SDG 8, SDG 10
404-2 Programs for upgrading employee skills and Carrier Sustainability and Impact Report (Talent & Career Development) SDG 4, SDG 8
transition assistance programs
404-3 Percentage of employees receiving regular Carrier Sustainability and Impact Report (Development & Performance Management) SDG 4, SDG 8,
performance and career development reviews SDG 10
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees Carrier Sustainability and Impact Report (Reflect Our Communities) SDG 5, SDG 8
Equal Opportunity Carrier Sustainability and Impact Report (Leadership)
Carrier Sustainability and Impact Report (Global Workforce)
2024 Proxy Statement, p. 3 (Board Nominees)
GRI 407: Freedom of Association 407-1 Operations and suppliers in which the right to Carrier Sustainability and Impact Report (Global Human Rights Policy) SDG 8
and Collective Bargaining 2016 freedom of association and collective bargaining
Carrier affirmatively states in our Human Rights Policy our commitment to human
may be at risk
rights, the principles of freedom of association and the right to collective bargaining.
Our Speak Up program is an anonymous reporting program that provides safe and
confidential channels for employees and business partners to seek guidance, ask
questions, make comments and report suspected misconduct.
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GRI Standard Disclosure Description Location/Direct Answer Related SDGs
GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for Carrier Sustainability and Impact Report (Global Human Rights Policy) SDG 8, SDG 16
incidents of child labor Carrier Sustainability and Impact Report (Child Labor & Forced or Compulsory Labor)
Carrier Sustainability and Impact Report (Embedding Sustainability
Into Our Procedures, Processes & Tools)
GRI 413: Local Communities 413-1 Operations with local community engagement, Carrier Sustainability and Impact Report (Stakeholder Engagement)
impact assessments and development programs
GRI 414: Supplier Social 414-1 New suppliers that were screened using social criteria Carrier Sustainability and Impact Report (Strengthening Supplier Engagement) SDG 5, SDG 8,
Assessment Carrier Sustainability and Impact Report (Supplier Inclusion) SDG 16
414-2 Negative social impacts in the supply chain and Carrier Sustainability and Impact Report (Responsible Supply Chains) SDG 5, SDG 8,
actions taken SDG 16
GRI 415: Public Policy 415-1 Political contributions 2024 Proxy Statement, p. 26 (Government Relations and Public Policy Activities) SDG 16
GRI 416: Customer Health 416-1 Assessment of the health and safety impacts of Carrier Sustainability and Impact Report (Product Safety)
and Safety product and service categories
GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of Carrier Sustainability and Impact Report (Product Cybersecurity) SDG 16
customer privacy and losses of customer data
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SASB Disclosure
This report was prepared following the SASB Resource Transformation – Electrical & Electronic Equipment Standard (Version 2023-12). Due to the nature of Carrier’s diversified business in industrial manufacturing,
Carrier also included metrics aligned to other industries that might be of interest to our investors, including Resource Transformation – Industrial Machinery and Goods (Version 2023-12). Carrier will continue to
evaluate the applicability of additional SASB metrics where warranted. These metrics are reported using the reporting entity described in the Annual Report on Form 10-K for the year ending 2023 (Form 10-K) for
Carrier. All data is as of December 31, 2023, for calendar year 2023.
Topic Accounting Metric Code Unit of Measure Carrier 2023 Response
Energy Management (1) Total energy consumed RT-EE-130a.1, RT-IG- GJ 4,235,224
130a.1
(2) Percentage grid electricity Percentage 52%
(3) Percentage renewable Percentage 12%
Hazardous Waste Management Amount of hazardous waste generated RT-EE-150a.1 Metric tons (t) 2,761
Percentage recycled Percentage 52%
Workplace Health and Safety1 (1) Total recordable incident rate (TRIR) RT-IG-320a.1 Rate 0.3
(2) Fatality rate – employees Rate 0
Product Safety Number of recalls issued RT-EE-250a.2 Number Carrier Sustainability and Impact Report (Product Safety)
Product Lifecycle Management Percentage of eligible products, by revenue, RT-EE-410a.2 Percentage by revenue In 2023, 28% of sales generated by Carrier’s U.S Residential HVAC
that meet ENERGY STAR criteria business was from furnaces, air conditioners and heat pumps that met
the energy-efficiency metrics specified by ENERGY STAR.2
Revenue from renewable energy-related and RT-EE-410a.3 Reporting currency In 2023, approximately 45% of our HVAC and Transport Refrigeration
energy efficiency-related products revenue was clean technology.
Carrier defines clean technology revenue as products and services sold
that facilitate decarbonization through lower energy consumption,
electrification and/or the transition to lower global warming potential
refrigerants in built environments and refrigerated transport.
1
Denotes a modified metric based on Carrier’s reporting systems.
2
This number reflects the estimated ENERGY STAR matchups based on the revised efficiency standard for Residential HVAC systems.
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Topic Accounting Metric Code Unit of Measure Carrier 2023 Response
Materials Sourcing Description of the management of risks RT-EE-440a.1, Discussion and analysis Carrier Sustainability and Impact Report (Design for Sustainability)
associated with the use of critical materials RT-IG-440a.1
Carrier Sustainability and Impact Report (Responsible Supply Chains)
Carrier Sustainability and Impact Report (Conflict Minerals)
Carrier Sustainability and Impact Report (Refrigerants)
Business Ethics Description of policies and practices for RT-EE-510a.1 Discussion and analysis Carrier Sustainability and Impact Report (Ethics & Compliance)
prevention of: (1) corruption and bribery and (2)
Carrier Sustainability and Impact Report (Anti-Corruption)
anti-competitive behavior
Carrier Sustainability and Impact Report (Fair Competition)
Total amount of monetary losses as a result RT-EE-510a.2 Reporting currency In 2023, we know of no incidents or legal cases associated with bribery
of legal proceedings associated with bribery or corruption that would have a material impact on our company or
or corruption our stakeholders.
Total amount of monetary losses as a result RT-EE-510a.3 Reporting currency In 2023, we know of no incidents or legal cases associated with
of legal proceedings associated with anti-competitive behavior regulations that would have a material
anticompetitive behavior regulations impact on our company or our stakeholders.
Activity Metrics Number of employees RT-EE-000.b, Number Our 2023 workforce was ~53,000 employees.
RT-IG-000.b
Carrier Sustainability and Impact Report (Global Workforce)
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TCFD Disclosure
TCFD Disclosure Reference
Governance - Disclose the organization’s governance around climate-related risks and opportunities
a) Describe the board’s oversight of climate-related risks and opportunities. 2024 Proxy Statement, pp. 21-25 (Corporate Governance)
2023 CDP response (C1.1a, C1.1b)
Corporate Governance Principles, p. 1 (Responsibilities of the Board)
b) Describe management’s role in assessing and managing climate-related risks and opportunities. Carrier Sustainability and Impact Report (Sustainability Governance & Oversight)
2023 CDP response (C1.2)
Strategy - Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s business, strategy and financial planning where such information is material
a) Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term. 2024 Proxy Statement, pp. 21-25 (Corporate Governance)
2023 CDP response (C2.1a, C2.3a, C2.4a)
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, Form 10-K, pp. 10-27 (Part 1, Item 1A. Risk Factors)
strategy and financial planning.
2023 CDP response (C3.1, C3.2a, C3.2b, C3.4)
c) Describe how processes for identifying, assessing, and managing climate-related risks are Carrier Sustainability and Impact Report (Climate Change)
integrated into the organization’s overall risk management.
2023 CDP response (C3.2, C3.2a, C3.2b)
Risk Management - Disclose how the organization identifies, assesses and manages climate-related risks
a) Describe the organization’s processes for identifying and assessing climate-related risks. 2024 Proxy Statement, pp. 25-26 (Corporate Governance)
2023 CDP response (C2.1, C2.1a, C2.1b, C2.2, C2.2a, C2.3a, C2.4a)
b) Describe the organization’s processes for managing climate-related risks. 2024 Proxy Statement, pp. 25-26 (Corporate Governance)
2023 CDP response (C2.2)
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TCFD Disclosure Reference
c) Describe how processes for identifying, assessing and managing climate-related risks are integrated into 2024 Proxy Statement, pp. 25-26 (Corporate Governance)
the organization’s overall risk management.
2023 CDP response (C2.1, C2.1a, C2.1b, C2.2, C2.2a, C2.3a, C2.4a)
Metrics & Targets - Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy Carrier Sustainability and Impact Report (Climate Change)
and risk management process.
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and the related risks. Summary Data (Greenhouse Gas Inventory)
c) Describe the targets used by the organization to manage climate-related risks and opportunities and Carrier Sustainability and Impact Report (Sustainable Innovation)
performance against targets.
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Summary Data
Greenhouse Gas Inventory1
GRI 305-1, 305-2: Scope Unit 2023 2022 2021
1 and Scope 2 GHG
emissions2 Direct (Scope 1) emissions3 tCO2e 158,189 193,856 203,379
(includes CO2, CH4, N20 and HFC)
Indirect (Scope 2) emissions4
Location-based tCO2e 249,349 243,370 261,757
Market-based tCO2e 214,123 206,465 261,614
Total Scope 1 and Scope 2
Location-based tCO2e 407,5385 437,226 465,136
Market-based tCO2e 372,312 400,321 464,993
1
Data reported in 2021 and 2022 was rebaselined and restated to align to Carrier's business portfolio as of 12/31/23. 4
Purchased electricity, residual mix market-based: AIB residual mix, Version 1.0, 2023-05-26 (European sites); Green-E residual mix, Released December 12,
Carrier uses the operational control approach to account for and report on our global Scope 1 and Scope 2 greenhouse gas (GHG) emissions where Carrier
2 2023 (USA sites); Brazil residual mix, Version 0.1 of January 19, 2023.
has the authority and opportunity to introduce and implement our operating policies. This includes sites engaged in manufacturing, sales, service, delivery Purchased electricity, sites located in USA: U.S. EPA Emissions & Generation Resource Integrated Database (eGRID), 2023, 2022 and 2021 release.
and other activities. Additionally, our GHG metrics include our fleet and service centers globally. This is representative of our manufacturing sites, large Purchased electricity, other sites than located in USA: International Energy Agency, IEA Emissions Factors AR4, 2022, 2021 and 2020 Edition.
headquarters, distribution, and research and development center operations, but does not include our entire footprint. Carbon dioxide equivalent (CO2e) Purchased steam: United States Environmental Protection Agency Emissions Factors for Greenhouse Gas Inventories 2023.
emissions include carbon dioxide (CO2 ), nitrous oxide (N2O), methane (CH4 ) and industrial gases such as hydrofluorocarbons (HFCs). Perfluorocarbons (PFCs),
GWP values: Intergovernmental Panel on Climate Change’s (IPCC) Fifth Assessment Report (AR5 – 100 year).
nitrogen trifluoride (NF3 ) and sulfur hexafluoride (SF6 ) are being evaluated for inclusion in future reporting. GHG emissions are tracked for sites procuring
Factors for estimating electricity consumption on non-reporting sites:
over $100,000 USD in energy per year. In 2021 and 2022, Carrier purchased 120,000 and 60,000 tCO2e of carbon offsets, respectively. Carbon offsets may
be considered as we approach our 2030 carbon neutrality goal. Our current operational GHG emission-reduction strategy is focused on GHG reduction Source: U.S. Energy Information Administration’s Commercial Buildings Energy Survey. Table C15. Electricity consumption and conditional energy intensity
programs and the purchase of renewable energy. by Census region, 2018. Revised date: December 2022.
Stationary combustion: United States Environmental Protection Agency Emissions Factors for Greenhouse Gas Inventories 2023.
3 Factor: Electricity energy intensity (kWh/square foot).
Mobile combustion: United States Environmental Protection Agency Emissions Factors for Greenhouse Gas Inventories 2023. Region: South.
GWP values, including refrigerant for fugitive emissions: 1) Intergovernmental Panel on Climate Change’s (IPCC) Fifth Assessment Report (AR5 – 100 year), Principal building activity: Office, warehouse and storage.
2014. 2) ASHRAE Handbook Fundamentals, I-P Edition (Chapter 29). We commissioned an external third party to perform attest procedures with respect to our Direct (Scope 1) emissions and Indirect (Scope 2) emissions
5
Factors for estimating natural gas consumption on non-reporting sites: (location-based) as of December 31, 2023.
Source: U.S. Energy Information Administration’s Commercial Buildings Energy Survey. Table C25. Natural gas consumption and conditional energy intensity
by Census region, 2018. Revised date: December 2022.
Factor: Natural gas energy intensity (cubic feet/square foot).
Region: South.
Principal building activity: Office, warehouse and storage.
For sites under $100,000 USD in energy procurement, Carrier estimated the natural gas usage, assuming that these sites are either offices or small
warehouses. Thus, the estimation is given by multiplying the square footage of the site building space by the natural gas energy intensity (cubic feet/
square foot) factor based on the activity performed in the building (office or warehouse).
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GRI 305-3: Unit 2023 2022
Scope 3 GHG
emissions1 Category 11: Use of sold products2 tCO2e 458,248,000 537,118,000
Total emissions Unit 2023 2022
Scope 1, Scope 2 market-based and Scope 3 tCO2e 458,620,312 537,518,321
category 11
GHG emissions quantification is subject to inherent measurement uncertainty. Scope 3 GHG emissions were not subject to external third-party attest
1
procedures. Source of Scope 3 GHG emission factors: International Energy Agency Emissions Factors 2023 edition, American Society of Heating and
Refrigerating and Air-Conditioning Engineers Standard 189.1; Source of GWP values: IPCC Fourth Assessment Report, 2014.
The use of sold products category excludes the Fire & Security businesses, whose greenhouse gas emissions for this category are de minimis and not
2
included in this analysis. Spare parts and products like thermostats, whose energy consumption is not significant, are also excluded from reporting. Data
for 2022 was rebaselined and restated to align Carrier’s business portfolio as of 12/31/23. The 2022 and 2023 data reflects changes to our methodology.
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Energy
GRI 302-1: Unit 2023 2022 2021
Energy consumption1
within the organization Energy consumption GJ 4,235,224 4,182,463 4,580,987
Purchased electricity GJ 2,194,372 2,090,670 2,226,237
Propane2 GJ 81,535 103,105 107,864
Natural gas GJ 945,649 1,111,684 1,334,970
Butane GJ 19,635 7,943 794
Distillate oil GJ 2,732 5,431 5,240
#4 oil usage GJ 182 210 276
Residual oil usage GJ 0 0 0
Gasoline usage GJ 1,038 1,515 1,799
Diesel fuel GJ 15,136 16,796 14,643
Purchased steam GJ 50,734 46,408 44,234
Fleet vehicle gasoline GJ 895,340 643,256 735,717
Self-generated electricity GJ 1,360 1,290 1,405
Jet fuel GJ 22,984 154,156 107,7734
Coal3 GJ 3,230 0 0
Kerosene3 GJ 1,295 0 0
Acetylene (ethyne)3 GJ 0.48 0 0
Specialty fuel GJ 0 0 34
Energy use is tracked for sites procuring over $100,000 USD in energy per year. This is representative of our manufacturing sites, large headquarters,
1 2
Includes Liquefied Petroleum Gas (LPG).
distribution, and research and development center operations, but is not inclusive of our entire footprint. Sites under $100,000 USD energy procurement are 3
New reported energy sources are a result of merger and acquisition activity.
estimated per the U.S. Commercial Building Energy Consumption Survey estimation factors based on square footage and building type. 2023 data excludes 4
Data reported in 2021 has been restated due to newly available information.
Chubb and includes Giwee, Toshiba Carrier Corp., now known as Carrier Japan Corp., and Virtus.
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GRI 302-3: Unit 2023
Energy intensity
Energy intensity ratio for GJ of energy/million 192
the organization USD in sales
Water
GRI 303-3: Unit 2023 2022 2021
Water withdrawal1
Total water withdrawal ML 3,599 3,023 3,391
Surface water2 ML 1,627 1,559 2,266
Groundwater ML 739 253 265
Seawater ML 0 0 0
Produced water ML 0 0 0
Third-party water ML 1,233 1,211 860
Total water withdrawal from areas with water stress3 ML 286.2 270.34 252.0
Surface water ML 0 0 0
Groundwater ML 51.4 47.7 44.04
Seawater ML 0 0 0
Produced water ML 0 0 0
Third-party water ML 234.8 222.64 208.0
Carrier uses a third-party software provider to capture data across our facilities and service locations utilizing direct measurements through invoices
1 2
Surface water includes once-through non-contact water.
and metered data. Data reported for 2021 is for reporting period December 2020 to November 2021. 2022 was the first year in which Carrier reported 3
Informed by the World Resources Institute Aqueduct Water Risk Atlas tool, Carrier determined water stressed sites as those scoring a 3 or above under the
environmental data on a calendar year basis. Reporting for 2021 and 2022 are as previously disclosed and have not been rebaselined to take into category of “overall water stress,” which takes into consideration the physical risks of quantity and quality in addition to regulatory and reputational risks.
consideration portfolio changes. Water withdrawal is tracked for sites procuring over $100,000 USD in energy per year. This is representative of our 4
Data reported has been restated due to newly available information.
manufacturing sites, large headquarters, distribution, and research and development center operations, but is not inclusive of our entire footprint.
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Waste
GRI 306-3: Unit 2023 2022 2021
Waste generated1
Total weight metric tons (t) 63,072.0 72,560.5 68,042.9
Nonhazardous waste metric tons (t) 60,311.1 70,222.7 65,778.9
Hazardous waste metric tons (t) 2,760.9 2,337.8 2,264.1
GRI 306-4: Unit 2023 2022 2021
Waste diverted from
disposal1 Total waste diverted from disposal metric tons (t) 54,959.3 64,428.8 60,404.8
Hazardous waste diverted metric tons (t) 1,520.5 1,215.0 1,169.1
Preparation for reuse metric tons (t) 95.5 165.9 36.0
Recycling metric tons (t) 1,425.0 1,049.1 1,133.1
Other recovery operations metric tons (t) 0 0 0
Nonhazardous waste diverted metric tons (t) 53,438.8 63,213.7 59,235.7
Preparation for reuse metric tons (t) 100.6 63.9 203.8
Recycling metric tons (t) 53,338.2 63,148.4 59,031.9
Other recovery operations metric tons (t) 0 1.5 0
Total hazardous waste and nonhazardous waste diverted
On-site metric tons (t) 0 0 0
Off-site metric tons (t) 54,959.3 64,428.8 60,404.8
Carrier uses a third-party software provider to capture data across our facilities and service locations. Data reported for 2021 is for reporting period
1
December 2020 to November 2021. 2022 was the first year in which Carrier reported environmental data on a calendar year basis. Reporting for 2021 and
2022 are as previously disclosed and have not been rebaselined to take into consideration portfolio changes. Waste data is tracked for sites procuring over
$100,000 USD in energy per year. This is representative of our manufacturing sites, large headquarters, distribution, and research and development center
operations, but is not inclusive of our entire footprint.
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GRI 306-5: Unit 2023 2022 2021
Waste directed
to disposal1 Total waste disposal metric tons (t) 8,112.6 8,131.7 7,638.2
Hazardous waste disposal metric tons (t) 1,240.4 1,122.8 1,094.9
Incineration (with energy recovery) metric tons (t) 353.7 292.2 123.9
Incineration (without energy recovery) metric tons (t) 132.5 120.3 326.8
Landfilling metric tons (t) 232.2 181.3 126.7
Other disposal operations metric tons (t) 521.9 528.9 517.6
Total nonhazardous waste disposal, and a breakdown metric tons (t) 6,872.3 7,008.9 6,543.2
Incineration (with energy recovery) metric tons (t) 2,998.0 2,070.6 821.0
Incineration (without energy recovery) metric tons (t) 41.7 10.9 1,062.8
Landfilling metric tons (t) 3,622.8 4,757.5 4,108.9
Other disposal operations metric tons (t) 209.7 170.0 550.5
Total hazardous waste and nonhazardous waste disposal
On-site metric tons (t) 0 0 0
Off-site metric tons (t) 8,112.6 8,131.7 7,638.2
Carrier uses a third-party software provider to capture data across our facilities and service locations. Data reported for 2021 is for reporting period
1
December 2020 to November 2021. 2022 was the first year in which Carrier reported environmental data on a calendar year basis. Reporting for 2021 and
2022 are as previously disclosed and have not been rebaselined to take into consideration portfolio changes. Waste data is tracked for sites procuring over
$100,000 USD in energy per year. This is representative of our manufacturing sites, large headquarters, distribution, and research and development center
operations, but is not inclusive of our entire footprint.
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Employees1
GRI 2-7: Number Percentage GRI 401-1: Number Percentage
Employees2 in 2023 New employee
Region3 hires4 in 2023 Region
SASB RT-EE-000.b,
Americas 20,704 39% Americas 3,416 50%
RT-IG-000.b
EMEA 12,925 25% EMEA 1,371 20%
APAC 19,251 36% APAC 2,056 30%
Gender Gender
Female 15,576 29% Female 2,012 29.4%
Full time 15,307 98% Male 4,824 70.5%
Part time 269 2% Not declared 7 0.1%
Male 37,288 71% Age group
Full time 37,131 99.6% <25 1,214 18%
Part time 157 0.4% 25-34 2,625 38%
Not declared 16 0% 35-44 1,684 25%
Full time 15 94% 45-54 882 13%
Part time 1 6% ≥55 438 6%
Total 52,880 100% Total 6,843
Total full time 52,453 99%
Total part time 427 1%
All employee data was compiled using Carrier's real-time human resources information system (HRIS). Minor variation may be observed due to timing of
1 3
Percentages are rounded.
data compilation. 4
Individuals hired externally in prior year between January 1 and December 31.
Carrier headcount is defined as all regular employees globally, which are employees who are not hired for a temporary schedule. Regular employees can be
2
either full-time or part-time. The data includes all management levels. Regional data was compiled using Carrier's HRIS and manually calculated. Employee
types excluded are apprentice, assignee, intern, co-op, retiree, trainee, seasonal and temporary.
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GRI 401-1: Number Rate GRI 401-3: Number
Employee voluntary Parental leave2
turnover1 in 2023 Region in 2023 (U.S.) Employees eligible for parental leave3 9,231
Americas 2,643 12.9% Employees who took parental leave
EMEA 1,070 8.0% Female 48
APAC 1,582 9.5% Male 156
Gender Employees who took birth/adoption leave
Female 1,680 11.5% Female 53
Male 3,615 10.2% Male 0
Age group Rate
<25 734 24.2% Return to work rate4
25-34 1,874 14.1% Female5 98%
35-44 1,327 8.9% Male6 100%
45-54 653 5.7%
≥55 707 9.8%
Total 5,295 10.6%
Total employees who voluntarily terminated during the year divided by total average headcount for the year based on monthly data. This calculation
1 4
Returned to work from parental leave for at least one month.
includes regular active employees. Employee types being excluded are apprentice, assignee, intern, co-op, retiree, trainee, seasonal and temporary. Number of female employees who took birth or adoption leave minus the number who did not return to work after birth or adoption leave divided by the
5
2
Refers to the period of time off granted per the Birth/Adoption and Parental Leave Policy. number of female employees who took birth or adoption leave.
3
Regular exempt and non-exempt salaried personnel, employees covered by a collective bargaining agreement who are eligible for salaried Carrier Number of male employees who took parental leave minus the number who did not return to work after parental leave divided by the number of male
6
Choice benefit programs, hourly management represented employees and part-time employees who are regularly scheduled to work a minimum of employees who took parental leave.
20 hours per week.
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GRI 404-1: Hours Total spend on training USD (million)
Average training hours and education in 2023
per year1 in 2023 Overall Total spend on training and education4 $7.2
Per learner 13 Total spend on Employee Scholar Program5 $4.4
Gender Training programs spend $2.8
Female 14 Number
Male 12 Degrees earned6 160
Employee category Current participants7 1,316
Executives 8
Managers/professionals 13 U.S. early career hiring Total Percentage
in 2023
Production maintenance/technical 11 New employee hires
Percentage2 Interns8 161 74%
Eligible employees covered in training3 70% Rotational Leadership Program9 58 26%
1
Data does not include the acquisition of Toshiba Carrier Corp., now known as Carrier Japan Corp., which was integrated into the Carrier Learning Portal 6
Represents the total number of degrees earned by employees through the ESP.
in 2023. Employees were excluded from sustainability and impact reporting since they did not have access until January 2024. Average training hours per 7
All eligible employees who have registered to participate in the ESP.
learner represents the number of trackable hours spent in training activities per year divided by total trained eligible employees. 8
The number of accepted and hired employees within the United States into intern management-level and the compensation-grade intern and co-op.
2
Represents all eligible employees who accessed training divided by all eligible employees in the Carrier Learning Portal in 2023. 9
The number of accepted and hired employees within the United States into the management-level rotational and the compensation-grade rotational
3
Includes regular employees, apprentices, assignees, fixed term, intern/co-op, retirees, seasonal, temporary and trainees. This excludes contractors. programs within our Marketing and Communications, Digital Technology, Engineering, Finance, Human Resources and Operations teams.
4
Training investment includes training vendors and Employee Scholar Program.
5
The Employee Scholar Program (ESP) is a company-sponsored employee education program. The program offers advanced tuition and tuition
reimbursement options. Total spend on ESP represents tuition, registration, academic and graduation fees and textbooks related to the ESP.
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GRI 405-1: Percentage GRI 405-1: Percentage
Diversity of Diversity of employees
governance bodies Board of Directors1 in 2023 Employees - gender3
Board of Director diversity2 33% Executives4
Board leadership diversity2 40% Female 32%
Board of Director independence 78% Male 68%
Directors
Female 25%
Male 75%
Managers and professionals
Female 25%
Male 75%
Employees - age group
Executives4
30-50 56%
≥50 44%
Employees - U.S. People of Color5
Executives4 33%
Directors 31%
1
As of 7/1/2024.
2
Female and racially diverse. Managers and professionals 26%
3
Employees self-identify gender.
4
Executive is defined using management level equal to Executive (E1 or higher) in HRIS.
5
U.S. People of Color including Asian (not Hispanic or Latino), American Indian or Alaska Native (not Hispanic or Latino), Black/African American (not Hispanic
or Latino), Hawaiian/Pacific Islander American (not Hispanic or Latino), Hispanic or Latino, and two or more races (not Hispanic or Latino).
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Pulse employee survey Score Pulse employee survey Engagement score1
results in 2023 results in 2023
Question Gender
How happy are you working at the company? 76 Female 77
I feel a sense of belonging at the company. 74 Male 76
My people leader cares about me as a person. 79 U.S. People of Color 71
I feel comfortable being myself at work. 78 Production, non-production
Production 80
Non-production 74
Inclusion score1
Gender
Female 74
Male 74
U.S. People of Color 69
Production, non-production
Production 77
Non-production 74
Full-year results are based on the average of three surveys in 2023. The engagement score is in response to the question, "How happy are you working at
1
the company?" The inclusion score is in response to the statement, "I feel a sense of belonging at the company."
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GRI 403-9: 2023 2022 2021
Work-related injuries1
Fatalities as a result of
work-related injury
Number 0 0 0
Rate 0 0 0
High consequence work-related
injuries (excluding fatalities)2
Number 5 - -
Rate 0.01 - -
Recordable work-related injuries
Number 173 161 247
Rate3 0.30 0.31 0.38
Carrier collects and maintains work-related incident records in a digitized injury management system, including injury analysis information. Carrier has
1
an injury management standard and a data reporting standard that determines how incidents are classified, escalated, managed, reported, analyzed and
periodically verified globally. Carrier adopts the U.S. OSHA injury and illness recordability criteria for injury classification. Contractors non-directly supervised
by Carrier are not included in the disclosure. Data considers only Carrier employees and directly supervised contractors. Data is per 200,000 hours.
2
New disclosure metric for Carrier. Data for 2022 and 2021 has not been disclosed in the past.
3
Number of fatalities, lost-time cases, restricted duty cases and medical treatment cases x 200,000/total hours worked.
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Cautionary Statement:
This report contains forward-looking statements (including statements that constitute forward-looking
statements under the securities laws). These forward-looking statements are intended to provide
management’s current expectations or plans for our future operating and financial performance, based
on assumptions currently believed to be valid. Forward-looking statements may include, among other
things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share
repurchases, tax rates and other measures of financial performance or potential future plans, strategies
or transactions of Carrier, statements with respect to current and future potential implications of
corporate social responsibility and sustainability topics, Carrier’s Sustainability and Impact initiatives
(including its climate-related matters and goals) and other statements that are not historical facts.
Many of these forward-looking statements are based upon certain assumptions, estimates, developing
standards and assessments made by our management in light of their experience and perception
of historical trends, current economic and industry conditions, expected future developments and
other factors they believe to be appropriate. Furthermore, all forward-looking statements involve
risks, uncertainties and other factors that may cause actual results to differ materially from those
expressed or implied in the forward-looking statements. These risks include macroeconomic factors
and megatrends, limitations and uncertainties inherent in climate and sustainability science (for
example, estimation limitations in metrics related to Carrier’s estimated emissions, including Scope 3
emissions, and other risks and uncertainties discussed in Item 1A of Carrier’s Annual Report on Form
10-K for the fiscal year ended December 31, 2023). For those statements, we claim the protection of the
safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform
Act of 1995. The forward-looking statements speak only as of the date of this report. We undertake
no obligation to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable law. Additional information
as to factors that may cause actual results to differ materially from those expressed or implied in the
forward-looking statements is disclosed from time to time in our other filings with the Securities and
Exchange Commission (SEC). Inclusion of information in this report is not an indication that the subject
or information is material to our business or operating results. “Material” for the purposes of this report
should not be read as equating to any use of the word in our other reporting or filings with the U.S.
Securities and Exchange Commission (SEC). Case studies presented within the report are for illustrative
purposes only and have been selected in order to provide examples illustrating Carrier’s application of
its Sustainability and Impact policies and procedures and do not purport to be a complete list thereto.
Carrier 2024 Sustainability and Impact Report 98
Carrier Global Corporation and its subsidiaries’
names, abbreviations thereof, logos, and
product and service designators are either
the registered or unregistered trademarks or
trade names of Carrier Global Corporation and
its affiliates and subsidiaries. Names of other
companies, abbreviations thereof, logos of other
companies, and product and service designators
of other companies are either the registered or
unregistered trademarks or trade names of their
respective owners.