On this page of StockholderLetter.com we present the 4/21/2023 shareholder letter from Trane Technologies plc — ticker symbol TT. Reading current and past TT letters to shareholders can bring important insights into the investment thesis.

 •  4/21/2023 Letter Continued (Full PDF)
 •  4/25/2024 TT Stockholder Letter
 •  4/24/2025 TT Stockholder Letter
 •  4/23/2026 TT Stockholder Letter
 •  More "Metals Fabrication & Products" Category Stockholder Letters
 •  TT Benford's Law Stock Score = 80

TT 4/21/2023 Shareholder/Stockholder Letter Transcript:

Ambition. Action.
Impact.
2022 Annual Report
2023 Notice and Proxy Statement

OUR PURPOSE
To boldly challenge what   s
possible for a sustainable world.
Dear Shareholders:
As a global climate
innovator, Trane
Technologies has clear
ambitions. But ambition
alone is not enough    
we take action every
day to enhance our
positive impact. In 2022,
we achieved another
year of top-quartile
financial performance,
while advancing our
bold sustainability
commitments.
PROPELLED BY OUR PURPOSE
From our Board of Directors to each
member of our global team, we
are propelled by our purpose to
boldly challenge what   s possible for
a sustainable world. That purpose
is at the core of our strategy and
drives our competitive advantage.
In 2022 we became one of the
first companies in the world to

have our 2050 net-zero carbon
emissions targets approved by the
Science-Based Targets initiative,
following previous approval of
our near-term 2030 targets. We
continue to relentlessly invest in
sustainable innovation, accelerating
decarbonization of buildings,
industry and the cold chain.
INNOVATING FOR CUSTOMERS
Customer demand for our
sustainable climate solutions is
strong and growing, as reflected
in record bookings of $17.5 billion,
organic revenue growth* of 15
percent, and unprecedented
backlog in 2022. Against a backdrop
of dynamic macro challenges, our
team continues to deliver leading
innovation, diversified products and
robust services, enabling resilience
and growth.
Our partnership with Neiman Marcus
Group is an example. We reviewed
their entire real estate portfolio to
develop a decarbonization roadmap,
beginning with the installation of
high-efficiency electric chillers
and sophisticated controls at their
flagship New York City Bergdorf
Goodman Store. The project
eliminates all direct natural gas
use at the landmark building,
setting an example on the path to a
net-zero future.
SUSTAINABILITY STRATEGY
DRIVES FINANCIAL
PERFORMANCE
The success of our sustainability
strategy shows in our continued
top-quartile financial performance
(among peers and the broader
industrials) for 2022. During the year,
we had record bookings, revenue
and operating margins, as well
as adjusted continuing earnings
per share*, which grew 21 percent
year-over-year. Since 2018, we have
delivered compound annual revenue
growth of 7 percent, adjusted
EBITDA margin expansion* of 220
basis points and powerful free cash
flow. We   ve continued our principled
and balanced capital deployment,
maintaining our high level of
These are non-GAAP financial measures. Reconciliation of non-GAAP financial measures can be found preceding the 2023 Notice
and Proxy Statement.
Trane Technologies / 2022 Annual Report

OUR LEADERSHIP PRINCIPLES
Work
today for a
sustainable
tomorrow
business reinvestment and returning
$1.8 billion to our shareholders in
2022 through dividends and share
repurchases. Since 2017, we have
delivered a total shareholder return
of 165%.
CREATING OPPORTUNITY
FOR ALL
Our uplifting culture is the driving
force behind our performance. We
continue to invest in ways to create
opportunity for all. For example, we
changed our tuition reimbursement
to tuition advancement, removing
barriers for those pursuing additional
technical certifications or college
degrees. Our commitment extends
into our communities, where we
are investing in the next generation
through our Sustainable Futures
program, including a new initiative
to bring STEM resources and
Trane Technologies volunteers
into classrooms to inspire future
sustainability champions
and innovators.
Trane Technologies / 2022 Annual Report
Keep
customers
at the heart
of all we do
Include and
uplift one
another
Make
better
happen
POSITIONED FOR A
SUSTAINABLE FUTURE
Our purpose-driven strategy,
strong customer demand, and
talented global team give me
confidence in our ability to continue
to lead in sustainability and deliver
differentiated financial performance
and shareholder returns over the
long-term. Our bold ambition drives
action and positive, lasting impact for
our team, customers, shareholders,
communities and the planet.
David S. Regnery
Chair and CEO
Dare to
do things
differently
Do what   s
Own our
actions and right,
always
decisions

Our Vision of a Net-Zero Value Chain     End to End
We are taking action toward a future where our entire value chain is net-zero: from raw material production, to our own
operations, to how our products reduce emissions and eliminate the need for fossil fuel. Below are some examples of
our most recent actions and commitments. Learn more in our 2022 ESG Report: www.tranetechnologies.com/esg
Resource
Extraction
Processing
& Suppliers
Inbound
Logistics
Low-carbon steel
Waste reduction
We pledged to
procure 100% net-zero
steel by 2050. In 2022,
we announced 20%
of our annual steel
purchase as low-carbon,
expected to reduce
nearly 120,000 mtCO2e
by 2030.
Our Returnable
Packaging team
implemented
new projects
that will reduce
approximately 556
tons of solid waste
and 274 mtCO2e
annually.
Operations
Outbound
Logistics
Manufacturing site
decarbonization
At our facility in
Charmes, France,
a new electrified
Thermal Management
System is expected to
reduce 1,800 mtCO2e
annually.
Product Use
& Services
End of Life
Innovating for customers
Trane   partnered with Neiman
Marcus Group to decarbonize its
flagship NYC storefront with the
installation of electric chillers. The
project eliminates all direct natural
gas use at the building and puts
NMG at the forefront of energy
innovation, setting an example for
buildings across New York City on
the path to a net-zero future.
External Recognition & Rankings
Each year, we take bold steps to create a sustainable future and advance our 2030 Sustainability Commitments. We   re
honored and proud to share our awards and ratings for our industry-leading sustainability performance from some of the
world   s top organizations.
Dow Jones
Sustainability Indices
FT Europe   s
Climate Leaders
    12th consecutive year on the
North America Index and 2nd
consecutive year on the
World Index
    2nd consecutive year
CDP A List 2022
Fortune World   s
Most Admired
    Climate score: A
    Water score: B
    10th consecutive year
From Fortune.   2023 Fortune Media IP Limited. All rights reserved.
Used under license. Fortune and Fortune Media IP Limited are
not affiliated with, and do not endorse the products or services of
Trane Technologies.
JUST 100
    Ranked 18th on the JUST 100 list
    1st in the Building Materials
& Packaging industry
Trane Technologies / 2022 Annual Report
Forbes World   s
Best Employers
    2nd consecutive year

Ambition Meets Action
Progress toward our 2030 Sustainability Commitments
Gigaton Challenge
We   re reducing one gigaton     one billion metric tons     of carbon emissions from our customers    footprint
Action
Impact
GREENHOUSE GAS EMISSIONS
93 million metric tons of CO2e reduced from our customers   
carbon footprint since 2019
Reduce customer carbon footprint by 1 gigaton
CIRCULARITY
Design systems for circularity
1,252 metric tons of CO2e avoided from returnable
packaging projects
Leading by Example
We   re reimagining our supply chain and operations to have a restorative impact on the environment
Action
Impact
GREENHOUSE GAS EMISSIONS
129,506 metric tons of CO2e reduced from our operations*
Achieve carbon neutral operations

31% reduction in operational emissions for Scope 1 and marketbased Scope 2*
REDUCE ABSOLUTE ENERGY USE
56% of electricity demand met with renewables in 2022
Achieve 10% absolute reduction in energy consumption
18% improvement in total energy efficiency*
compared to 2019 baseline.
Opportunity for All
Uplifting our people, culture and communities through an inclusive approach
Action
Impact
GENDER PARITY
Increased women in senior leadership roles from 24.6% to 26.2%,
and women in management from 23.1% to 24.2%
Achieve gender parity in leadership roles
In 2022, 5 of 13 members of Board of Directors were women
RACIAL AND ETHNIC DIVERSITY
Achieve workforce diversity reflective of our communities
Increased racially or ethnically diverse U.S. salaried employees
from 18.4% to 19.6%
COMMUNITY ENGAGEMENT
$15.8+ million in total philanthropic giving in 2022
Invest $100 million in building sustainable futures
for under-represented students
Committed to Net-Zero by 2050
Our 2030 commitments reflect the actions we are taking now to bend the curve on climate change, but our efforts won   t stop there.
Once we achieve our near-term targets, we will continue efforts to achieve our long-term goal of net-zero emissions by 2050. Our
approach is aligned with the latest guidance from the United Nations Framework Convention on Climate Change (UNFCC) and is
among the first corporate net-zero goals to be validated by SBTi among all sectors.
Learn more about our progress toward our 2030 Sustainability Commitments and our pathway to Net-Zero in our 2022 ESG
Report. www.tranetechnologies.com/esg
Trane Technologies / 2022 Annual Report

4/21/2023 Letter Continued (Full PDF)

 

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