381752

Metric Tons

of GHG emissions avoided in 2020

17%

Reduction

from Carrier's own operations since 2015

255

Million Gallons

of water consumption reduced in 2020

View Our Analysis

The Path to Drawdown: High-Efficiency Heat Pumps

Buildings and construction account for about 38% of global CO2 emissions and 35% of total energy-use. More than one-third of that is for heating and cooling, which could cut energy use by 30-40% with maximum efficiency.

Heat pumps are the technology that can increase heating and cooling efficiency most effectively. Heat pumps extract heat from the air and transfer it from indoors to the outside for cooling, and from outdoors in for heating. The ground, air, or water can act as the source of or outlet for that heat.

Heat pumps are easy to adopt, well understood, and already in use around the world. They can supply indoor heating, cooling, and hot water, all from one integrated unit. With high efficiency, they can dramatically reduce building energy use. When paired with renewable energy sources, they could eliminate almost all emissions from heating and cooling.

According to Project Drawdown, high-efficiency heat pumps need to continue growing mildly between now and mid-century to help achieve decarbonization:

  • <::marker> In 2018, high-efficiency heat pumps accounted for 3% of the market for delivered heat globally
  • <::marker> To stay below 1.5°C of global warming, high-efficiency heat pumps need to grow enough to account for 4.3% of that market by 2060
  • <::marker> That’s 0.86% growth annually between 2018 and 2060

If this scaling can be achieved, heat pumps can help avoid up to 9.3 gigatons of GHG emissions.

What We Want to See Improve

Switch to Zero-Emission Fuel

Carrier relies overwhelmingly (p. 66) on fossil fuels for their operation and transportation. And what’s more, their use of natural gas, butane and fleet vehicle gasoline has gone up in the last three years. As part of their mission to reach carbon neutrality by 2030 (p. 14), we urge Carrier to transition to clean energy sources like electric or green hydrogen vehicles for their fleet and renewable energy for their operations.

Track Scope 3 Emissions

We applaud Carrier’s reporting of their scope 1 and 2 emissions (p. 69). To go a step further, we want them to track the indirect emissions from their entire supply chain as well.

Expand Faster

The COVID-19 pandemic understandable dealt a blow to Carrier’s revenue. But even before 2020, the net sales of all of their business segments were either flat or declining compared to 2018. We are eager for them to bounce back from the pandemic-induced lull and begin expanding their sales as soon as possible.

Related Heat Pump Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

2.88%

Carrier Global (CARR)

Carrier equips buildings with high-efficiency HVAC systems to improve energy efficiency - key to cutting emissions in the building sector

2.74%

Trane Technologies (TT)

Trane makes and sells AC, building management, heat pumps, and refrigeration systems, helping buildings achieve energy efficiency and emission cuts

0.69%

Lennox International (LII)

Lennox makes high-efficiency heating, ventilation, air conditioning and refrigeration products, helping building managers cut energy use and emissions

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