From greenhouse gas emissions to employee education, we measure corporate responsibility performance using key performance indicators to help stakeholders understand our progress and compare UTC to other companies and industry benchmarks. More in-depth information on these metrics is provided later in this report.

Governance

In 2007, UTC increased its Dow Jones Sustainability Indexes rating by 7 points and was again named one of the Global 100 Most Sustainable Corporations in the World at the World Economic Forum in Davos, Switzerland. We also received a positive assessment from Institutional Shareholder Services’ ranking of the S&P 500, and AAA rating from Innovest Strategic Value Advisors. We were rated 9.5 out of 10 by GovernanceMetrics International and were named Most Admired aerospace and defense company in the United States by Fortune magazine, for the seventh consecutive year.

Environment

Historical data

Progress on new goals

We set our first Environment, Health & Safety (EH&S) goals in 1991, and have publicly reported performance since 1992. In 1997, we committed to aggressive 10-year goals to reduce energy and water use, adding air emissions and waste measures in 1999. From 1997 to 2006, we reduced absolute energy use by 19 percent and water use by 49 percent. We then set more aggressive goals for improved performance between January 1, 2007 and December 31, 2010 (baseline 2006) and now report greenhouse gas (GHG) emissions using the World Business Council for Sustainable Development and World Resources Institute Greenhouse Gas Protocol. Given this new metric, we are presenting data both as historically reported and with our new goals and standards.

Products

In 2001, we began voluntarily eliminating materials of concern (heavy metals). Our products are technically complex and require the highest quality and standards to ensure safety. Finding safe, effective substitutes that are also acceptable to our customers has proved challenging. While we will continue to work on legacy product and process elimination, our primary goal is to eliminate materials of concern in new products by the end of 2010. At the end of 2007, we achieved 44 percent elimination in new products. Our latest EH&S goals also target all new products for improved environmental performance. Our goal is to increase energy efficiency and reduce packaging by 10 percent, or achieve best in class performance, by the end of 2010. At the end of 2007, we met the efficiency goal in 75 percent of new products and the packaging goal in 100 percent of new products.

Customers and Suppliers

In 2007, more than 1,000 key suppliers representing approximately 40 percent of UTC’s product spend completed self-assessments against baseline EH&S expectations. Eighty-one percent have met this criteria. Those who did not meet it have identified, or are in the process of identifying, corrective actions. We aim to have 100 percent of corrective actions closed by the end of 2010.

People

Open and free access to education is an important benefit for all UTC employees. In 2007, 14,583 UTC employees in 50 countries furthered their education with support from our unique Employee Scholar Program (ESP), which covers the costs of accredited degree programs and provides paid time off for study. We invested $85 million in the ESP in 2007 and more than $688 million since the program’s inception in 1996. UTC continues to work on improving its health and safety record. Our worldwide lost workday incident rate fell to 0.31 and our worldwide recordable incident rate fell to 1.16. Work-related fatalities decreased from five to four. We also expanded our definition of serious injuries in 2007 to focus on significantly reducing burns and tissue punctures. Under our expanded definition, serious injuries decreased from 34 in 2006 to 29 in 2007.

Communities

We maintained an above-average score in the social dimension of the Dow Jones Sustainability Indexes and use this as our social responsibility benchmark. Our charitable donations were $20.3 million in 2007, and UTC employees in the United States volunteered more than 65,000 hours in their communities.