In an interview with BW Sustainabilityworld, Sundaresan Narayanan, Managing Director (MD), Carrier India, HVAC has said that the company is planning to expand its manufacturing footprint in the country and increase sourcing from domestic suppliers.

Carrier collaborates closely with stakeholders throughout the supply chain to drive the ESG roadmap forward. Currently, we are producing a variety of products locally, including light commercial, VRF and mid-sized chillers,” said Narayanan. Edited excerpts:

What is the sustainability roadmap of Carrier in India?

We are transforming through acquisitions and business exits and aim to become a more focused, digitally enabled, end-to-end sustainable energy solutions provider. Our offerings span heating, cooling, and energy management, aligning with India’s and the world’s most pressing sustainability initiatives.

By 2030, Carrier aims to reduce customers’ carbon footprint by over 1 gigaton. As we diversify our portfolio of intelligent climate and energy solutions, Carrier is accelerating the transition towards integrating more connected technologies and advocating for environmentally responsible refrigerants. Notably, in 2022, approximately 50 per cent of global HVAC and Transport Refrigeration revenue stemmed from clean technology or products facilitating decarbonization.

How are you collaborating with the different stakeholders in the supply chain to drive the company’s ESG roadmap?

Carrier collaborates closely with stakeholders throughout the supply chain to drive the Environment, Social and Governance (ESG) roadmap forward. Currently, we are producing a variety of products locally, including Light Commercial, VRF and mid-sized chillers, with plans to expand our manufacturing footprint in the country and increase sourcing from domestic suppliers.

Expanding our manufacturing operations in India not only contributes to economic growth but also fosters self-sufficiency and builds a robust local supplier ecosystem, reducing our reliance on imports. Within our operations, we continuously assess factory suppliers against our program criteria, emphasising the importance of sustainability and responsible practices. Many corporations, including Carrier, require suppliers to adhere to ESG goals and disclose their efforts in this regard.

What are some of the key initiatives that you would like to highlight across the ESG pillars of sustainability that Carrier is undertaking?

In terms of social responsibility, Carrier places a strong emphasis on diversity, equity and inclusion (DEI). Moreover, Carrier upholds rigorous ethical standards and governance practices. Transparency, accountability, and integrity are at the core of our business operations.

On the environmental front, Carrier India’s 35-year-old facility achieved an IGBC platinum rating in 2022. One of our key initiatives involves assisting customers in avoiding over 1 gigaton of greenhouse gas emissions by 2030. To achieve this, we’re investing upwards of USD 2 billion in developing sustainable, intelligent building and cold chain solutions.

Furthermore, our ESG goals include targets for achieving water neutrality, zero waste to landfills, and reducing energy intensity by 10 per cent in our operations.

What are some of the challenges you have encountered in the process and how have you overcome them?

One significant challenge has been addressing issues related to climate change and navigating the ongoing energy transition. These challenges demand strategic planning and innovative solutions to effectively mitigate their impact. Additionally, implementing sustainable practices across our operations, such as reducing greenhouse gas emissions and transitioning to renewable energy sources, has presented its own set of hurdles.

Carrier India’s Gurugram factory implemented changes resulting in the annual saving of 1500 metric tonne of CO2 equivalent GHG emissions, earning it a prestigious Platinum certification from the Indian Green Building Council (IGBC). These efforts include the installation of a 500kW solar power plant and transitioning from diesel-based to bi-fuel gensets for captive power generation. Furthermore, our paint shop now operates on green fuel, further reducing our environmental impact.

What would be your priority in terms of sustainability in the upcoming years?

In the upcoming years, our priority at Carrier revolves around advancing sustainability on multiple fronts. At the forefront is our commitment to decarbonization, with a target of achieving net zero greenhouse gas emissions across our entire value chain by 2050. This complements our ongoing efforts to help customers reduce their emissions by over 1 gigaton by 2030.

Additionally, we are focused on achieving water neutrality, eliminating waste in landfills, and reducing energy intensity by 10 per cent in our operations. These ambitious ESG goals underscore our dedication to environmental stewardship and responsible business practices.