Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Johnson Controls has mostly positive engagement on climate policy in the EU and US in 2021-22. Johnson Controls has positive top-line messaging on climate policy and has supported numerous energy efficiency and GHG emissions reduction measures in the EU and US, including stating support for the US Inflation Reduction Act in 2022.
Top-line Messaging on Climate Policy: Johnson Controls has positive top-line messaging on climate policy. Johnson Controls has consistently stated support for the Paris Agreement in 2021-22, including in its 2022 Sustainability Report. An October 2021 joint letter signed by Johnson Controls urged US policymakers to support robust climate provisions in the US Build Back Better Act. In a July 2022 press release, Johnson Controls urged the US Congress “to bring effective climate legislation forward” following the Supreme Court’s ruling on the EPA and similarly advocated for the Biden Administration to “pass Climate and Energy Investments NOW” in another July 2022 joint letter. Johnson Controls CEO, George Oliver, also co-signed a letter to the G7 in July 2022 supporting accelerated action to limit greenhouse gas emissions, including a ramp-up in carbon pricing, starting at $30 per tonne, and moving towards $120 per tonne. A joint August 2022 letter signed by Johnson Controls also urged policymakers to increase the ambition of Californian regulations to decarbonize buildings.
Engagement with Climate-Related Policy: Johnson Controls appears to have mixed but mostly positive engagement on specific climate policies. Regarding energy efficiency policy, in an April 2021 testimony to the US Senate Committee on the Budget for ‘Climate Change: The Cost of Inaction’, CEO George Oliver expressed support for public policy on energy efficiency. Similarly, a joint November 2022 World Economic Forum letter, signed by CEO George Oliver, also supported the general need for energy efficiency incentives and renewable energy legislation and incentives globally. Johnson Controls also expressed strong support for the Bipartisan Infrastructure Framework and its inclusion of energy efficiency programs. Johnson Controls’ sustainability and external relations chief also suggested the need for more ambitious US federal building standards in a December 2021 Financial Times article. However, an October 2022 US consultation response from Johnson Controls appeared to oppose a proposed higher 95% minimum annual fuel utilization efficiency standard for manufactured housing furnaces, stressing cost concerns
In July 2021, Johnson Controls signed a joint letter urging the US Congress to pass a federal clean energy standard that would achieve 100% clean energy by 2035. Another We Mean Business Coalition letter signed by Johnson Controls in April 2021 also stated support for an economy-wide 50% US GHG emissions reduction target. A July 2022 press release from Johnson Controls also stated support for the US Environmental Protection Agency’s (EPA) legal right to regulate greenhouse gas emissions, following the West Virginia vs. EPA court ruling.
Positioning on Energy Transition: Johnson Controls appears to have mixed engagement on policies surrounding the global energy transition. Positively, a Johnson Controls response to a survey by the European Environmental Bureau in February 2022 stated support for both the phase-out of subsidies for fossil-powered boilers and water heaters and a ban on new fossil-fueled domestic boilers and water heaters in the EU by 2022. In July 2022, Johnson Controls signed a joint letter that suggested support for California's 2030 zero-emissions standards for heating equipment - on the condition that it includes equity and workforce-development policies. In August 2022, Johnson Controls also signed two joint letters, from the Strongly supporting transition of energy mix C2ES and a Business Support Statement, stating support for the climate provisions in the US Inflation Reduction Act. Communications from Johnson Controls CEO, George Oliver, reported by Reuters Events in December 2022, also appeared to generally support global building-sector decarbonization. However, more negatively, an October 2022 US consultation response from Johnson Controls appeared to oppose the Department of Energy’s measure to increase energy efficiency standards for fossil gas and propane furnaces to promote the electrification of the building sector.
A September 2021 We Mean Business Coalition letter signed by Johnson Controls advocated for policymakers to end new coal developments and financing, and phase-out coal by 2030 in advanced economies and 2040 in other countries, alongside removing fossil fuel subsidies globally “ideally by 2025”. Similarly, a joint World Economic Forum letter signed by Johnson Controls CEO George Oliver in November 2022 advocated for the removal of fossil fuel subsidies and broadly supported regulatory measures to promote low-carbon technologies. A joint C2ES letter in July 2021 signed by Johnson Controls also supported net-zero infrastructure investments in the Biden Administration’s infrastructure package.
Industry Association Governance:Johnson Controls has listed its membership of trade associations in its 2022 Sustainability Report, but does not provide further details of each organization’s climate change policy positions. Johnson Controls has not published a dedicated review of its alignment with its industry associations on climate policy. Johnson Controls CEO George Oliver is the Head of the Energy and Environment Committee for Business Roundtable, which has mixed engagement on US climate policy. The company is also a member of the National Association of Manufacturers, which has engaged negatively on several strands of US climate-related policy and advocated for the ongoing role of fossil fuels in the US economy.