Environmental

Our global Environment, Health & Safety (EH&S) goals are simple: the highest environmental standards; safe and healthy workplaces for all employees; and increased efficiency and reduced negative impacts of our products in service. The goals are informed by our work with governments, nonprofits and fellow corporations to tackle worldwide environmental challenges.

Global Environment, Health & Safety Policy
United Technologies Corporation will not be satisfied until its workplace is safe from hazards, its employees are injury-free, its products and services are safe, and its commitment and record in protecting the natural environment are unmatched.

Objectives
	Eliminate all employee injuries by making the workplace free from hazards and unsafe actions.
	Drive pollutants in manufacturing processes to the lowest achievable levels.
	Conserve natural resources in the design, manufacture, use and disposal of products and delivery of services.
	Establish safety and environmental protection standards that both comply with local laws and go beyond, when necessary,
	to achieve the goals of this policy.
	Hold operating managers accountable for safety and environmental performance and for providing leadership
	and required resources.
	Require all employees to comply with these standards.

Supporting Steps
	Quantify safety and environmental goals, measure progress regularly and report progress to the UTC Board of Directors,
	employees and communities; and respond to suggestions and needs of others.
	Develop technologies and methods to assure safe workplaces worldwide and to protect the environment and
	promulgate these outside UTC.
	Make safety and environmental considerations priorities in new-product development and investment decisions and in our
	dealings with contractors and suppliers.
	Work with governments and industry associations to advance laws and regulations supporting these goals

Environment, Health & Safety Goals
Our EH&S management framework contains a set of explicit goals and metrics that establish our performance targets. UTC has had performance goals since 1992. Our current goals, all normalized for revenue, will expire on Dec. 31, 2006. We are on track to meet — or have already exceeded — our goals.

They are:
	A 60 percent reduction in air emissions (base year 1999)
	A 35 percent reduction in recycled waste (base year 1999)
	A 60 percent reduction in non-recycled waste (base year 1999)
	A 40 percent reduction in energy and water consumption (base year 1997)
	A 90 percent reduction in worldwide lost workday incident rate (base year 1996)
	A 90 percent reduction in U.S. total recordable incident rate (base year 1996)

   This disciplined system of unambiguous goals and a high-profile commitment to continual EH&S process improvement is central to our corporate culture and to how we do business. Every UTC business, regardless of industry, must comply with our policy. Every business acquired by UTC must comply with all requirements of its country’s safety and environmental laws. The acquired business is then expected to meet UTC safety and environmental standards within two years.

In 2003 the U.S. Environmental Protection Agency (EPA) named UTC a Climate Leader for our commitments to reducing the impact of greenhouse gases on the environment. UTC also participates in the U.S. EPA’s Energy Star program.    A requirement of participation in Climate Leaders is that the data we report conform to the adopted global reporting guidelines of The World Resources Institute/World Business Council for Sustainable Development.    Climate Leaders also requires that our data calculations, summations and inventory management plan be reviewed and approved by a designated EPA contractor; in our case, Econergy International. Econergy is also responsible for completing an annual site audit of one facility chosen by Climate Leaders. Econergy reviews our baseline year (2001) for Climate Leaders and all subsequent years.