DiversityPlus has just conducted an interview with KeeKee Mathis, Trane Technologies’ Senior Leader of Supplier Sustainability & Diversity, on the company’s Sustainability Initiative, the commitments they have made for 2030, and how they hope to make a more sustainable world.

Who Is Trane Technologies?

Trane Technologies is a global climate innovator that brings efficient and sustainable climate innovations to buildings, homes, and transportation. Two of their most recognizable brand names are Trane and Thermo King. Other known brands include American Standard Heating and Air Conditioning, FrigoBlock, OxBox, and RunTru. Trane Technologies continues to innovate and strives to make indoor environments healthier every day. As Mathis says, “We boldly challenge what’s possible for a sustainable world!”

What Are Trane Technologies’ Sustainability Commitments for 2030? How is Trane Technologies Working With Suppliers To Bring Sustainable Solutions to the Table While Minimizing Costs?

Trane Technologies employs a supplier decision matrix during their supplier selection process so that their procurement officers not only consider the supplier’s price, but other factors that include their supply chain resiliency, the total value they would bring to Trane Technologies customers, and environmental, social, and governance (ESG) factors that include supplier diversity, sustainability, quality, and risk. Trane Technologies then uses a cross-functional team to determine the weight of each aforementioned factor within the matrix and assesses the importance of ESG to the purchase. When considering new suppliers, Trane Technologies consults and utilizes third-party supply chain data management solution partners to learn more about T the suppliers’ financial health and reputational risk, which are also factored into Trane Technologies’ decision-making process.

In regards to suppliers the company currently works with, the Trane Technologies Business Partner Code of Conduct (BPCoC) communicates their expectations that suppliers operate ethically. It is part of their standard terms and conditions for all suppliers, covering ESG topics and aligning with the United Nations’ Universal Declaration of Human Rights. Trane Technologies also asks all suppliers to strive toward the goals that are outlined in their Technologies Supplier Sustainability Expectations so that their customers and the environment benefit. Trane Technologies evaluates how well their suppliers do versus their standards by managing supplier environment, health, safety (EHS), and sustainability data through a supply chain data management solution partner.

How Does Trane Technologies’ Sustainability Initiative Impact the Supply Chain?

Like many global companies, Trane Technologies has a complex supply chain that can be susceptible to many different risk factors ranging from geopolitical to factors related to climate, human rights, cybersecurity, and the pandemic. It can also be impacted by economic challenges like raw material price fluctuations and labor shortages. As a result, Trane Technologies continuously evaluates its policies and updates them accordingly based on its assessments so that the supply chain becomes more resilient to these and other risk factors and conditions.

To improve supply chain resiliency, Trane Technologies assists its suppliers in improving their operations by providing integration support into their Preferred Suppliers Program and offers training to them on environmental, social, and governance objectives and their Business Partner Code of Conduct. Select suppliers must also report their performance in regards to environment, health, and safety regulations, as well as how well they perform versus Trane Technologies’ Sustainability Expectations. This is all done to both provide more visible transparency of their performance versus Trane Technologies’ expectations and to improve future performance in these areas.

How Does Trane Technologies Help Diverse Suppliers Bring Innovation to its Sustainability Challenges?

Mathis has the distinct privilege of being the leader for both Trane Technologies’ Supplier Sustainability and Supplier Diversity, and she sees both of these going hand in hand. As she herself states, “our triple bottom line is people first, the planet second, and profit third.” She and her team provide training on supplier diversity topics both internally and externally; this is done via engaging, involving, and developing minority and diverse suppliers on these sustainability topics and goals, along with alignment with Trane Technologies’ sustainability expectations. Trane Technologies also invites all suppliers to attend their workshops and trainings, plus provides literature on the company’s vision of sustainability both now and into the future to give suppliers more of an idea of what Trane Technologies expects from them and how the suppliers can help, innovate, and improvise to make that vision happen.

What Statistics Does Trane Technologies Use To Determine Whether The Company Is Succeeding At Achieving Its Sustainability Expectations Or Not?

Mathis points out that there are six main statistics or “science-based targets” (SBTs) Trane Technologies uses to evaluate sustainability performance:

1. A percentage of survey completion and reporting from its suppliers. 2. A percentage of Tier II commitment from its Tier I suppliers, measured in US Dollars (USD). 3. How close to “0” waste is sent to the landfill, measured in pounds/lb. 4. How close to “0” wasted water, measured in gallons. 5. How close to a 10% energy consumption reduction, measured in British thermal units (BTUs, a unit measurement of generated heat). 6. How close to “0” fatalities and how much lost time, measured by the number of fatalities and the hours of lost time.

What is One of the Greatest Challenges Trane Technologies Has Had to Overcome In Its Sustainability Drive?

Trane Technologies has collaborated closely with their suppliers to participate in its new sustainability and diversity surveys. Trane Technologies collects this information so that its partners, including preferred suppliers and the supplier council, know that all suppliers working with Trane Technologies know, understand, have committed, and are in alignment with Trane Technologies’ 2030 Sustainability Goals. Mathis points out that Trane Technologies is one of many corporations that requests this information, and this information is sometimes required for compliance with government regulations, which is another reason why Trane Technologies requests this information from its suppliers.

Mathis goes on to say that “working together as a team is the only way to achieve a sustainable and inclusive world. Together, we are better, stronger, bolder, and can accomplish much. Let’s be bold together!