Honeywell (HON) is making a major new climate pledge just as the Biden administration increases focus on fighting climate change and investors heighten their focus on ESG issues.
The industrial and tech giant committed Thursday to becoming carbon neutral in its operations and facilities by 2035. To achieve the ambitious target, Honeywell plans further investments in energy-saving projects, the use of more renewable energy sources, completion of capital improvement projects at its sites and the utilization of carbon credits.
Honeywell says the reductions in carbon will be reported publicly and third-party verified pursuant to The Greenhouse Gas Protocol. The latest pledge comes as Honeywell says it has implemented more than 5,700 sustainability projects since 2010, saving it an annualized $100 million in costs.
“Companies like Honeywell have a unique role to play in shaping a future that is safer and more sustainable for our children and our grandchildren, and that’s why I am pleased to commit to achieving carbon-neutral facilities and operations by 2035,” said Honeywell Chairman and CEO Darius Adamczyk in a statement.
Continued Adamczyk, “Honeywell has a long history of improving our own environmental and sustainability profile while providing innovative products and services that improve our customers’ profiles as well. We will continue to invest in our plants and in new technologies that will reduce our carbon footprint and contribute significantly to global efforts to mitigate climate change.”
To be sure, Honeywell isn't alone in setting some high goals for tackling climate change.
President Biden is seeking to develop carbon-free electricity by 2035. He is also keen on building out the solar and wind infrastructure in the country so it could be net-zero emissions by 2050. In the president's new American Jobs Plan, he sets aside money to build 500,000 EV charging stations in the U.S. and is reportedly eyeing the expansion of the EV tax credit.
Amidst this backdrop, industrial companies like Honeywell are stepping up their climate efforts. In recent weeks, Johnson Controls and 3M have made noteworthy commitments on addressing the issue of climate change in their businesses.
Programming note: Honeywell chairman and CEO Darius Adamczyk will be appearing on Yahoo Finance Live this morning. Tune in live starting at 9:00 a.m.
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