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2012 Annual Report, Financial and Corportate Responsibility Performance
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Accelerate

Our Approach

As United Technologies continues to grow in markets around the world, we bring with us a belief that financial performance and corporate responsibility go hand in hand.

As a responsible corporate citizen, we are committed to minimizing the environmental impact of our products, our operations and our supply chain. We provide a safe work environment and support lifelong learning for all employees. We support charitable and social causes in the communities where we live and work. Everywhere we do business, we apply the highest standards of corporate responsibility and measure success with the same set of ethical, environmental and safety metrics.

Environment, Health & Safety (EH&S)

Discipline and focus guide our efforts to continuously improve our EH&S performance. Across UTC we apply a global standard aimed at eliminating adverse impacts in our products, our manufacturing processes and our supply chain. This produces meaningful benefits for our employees and our customers in the communities and markets where we operate. With the Goodrich integration in 2012, this uniform approach was introduced to thousands of new employees at more than 100 additional manufacturing locations.

Conserving Natural Resources

UTC has a successful history of implementing water conservation efforts, reducing water use by 32 percent since 2006, with a goal of achieving a 40 percent reduction by 2015. In Singapore, Pratt & Whitney Commercial Engines modified onsite plumbing at three facilities as part of its voluntary participation in NEWater — a water recycling and reuse program developed by Singapore’s Public Utilities Board. This innovative partnership accomplishes the goals of resource conservation and economic growth, and has resulted in decreasing water discharges by approximately 15 million gallons per year. In Windsor Locks, Conn., UTC Aerospace Systems employees designed and installed a wastewater reuse and recycling system that is applied across multiple manufacturing processes and has reduced freshwater intake by 12 million gallons a year. Extending beyond our operations, UTC collaborates with ONE DROP, a nongovernmental organization, to support a multiyear project in Orissa, India, to bring safe drinking water to more than 100 villages.

Governance

The integrity, reputation and profitability of United Technologies depend upon the individual actions of our directors, officers, employees and representatives all over the world. Each is responsible and accountable for compliance with our Code of Ethics. And each of us shares a goal to be world class in all that we do — aiming for outstanding operational and financial performance, the highest ethical standards, the safest work environment and the best compliance practices.

Taking Responsibility for Our Actions

In 2012, we entered into agreements with the U.S. Department of Justice and the U.S. Department of State to resolve a number of enforcement actions related to export licensing requirements. We have taken considerable steps to strengthen our export licensing compliance program and continue to build on this progress so that it will be as renowned for excellence as are our people and products.

Maintaining an Ethical Culture

The Code of Ethics embodies our commitment to promoting an environment of trust, respect and integrity. This includes communicating openly, honoring all commitments and holding ourselves accountable to the highest standards.

Maintaining an ethical culture requires a coordinated and disciplined approach across every country where we operate. Our network of Business Practice Officers (BPOs) plays a critical and valuable role by facilitating open communications, providing ongoing training and investigating allegations of wrongdoing. Here are a few of them.

Winning the trust and confidence of the people we serve can be challenging. Building trust is really critical for becoming an effective BPO.
FEYZAN DALAY
Sikorsky
Shelton, Connecticut
Impacting organizational culture is an ongoing process, as opposed to a successful event. UTC’s commitment to continuous improvement requires that we regularly build upon yesterday’s accomplishments.
ANTHONY GRAY
Sikorsky
Stratford, Connecticut
I have three principal priorities: to protect the company’s reputation by making sure we have a high ethical culture; to ensure we are in legal compliance in everything we do; and to be a role model and inspiration to my colleagues.
JOSE HERRERA
UTC Climate, Controls
& Security
Monterrey, Mexico
Because BPOs operate at a peer level rather than as a corporate overseer, we are able to have a real impact in helping all employees determine the appropriate action or behavior in the varied situations they encounter.
AMINA KHERBOUCHE
UTC Climate, Controls
& Security
Québec, Canada
It is important to lead by example and be a role model. BPOs assist and guide employees in making sure that we succeed as an organization by doing business the right way.
MIKE MIRANDA
Otis
United Arab Emirates
As a BPO, it is imperative that I do all I can to protect the company. This means devoting much of my time to ensuring that employees, suppliers and contractors work ethically and comply with all laws and regulations.
ALEXANDRA NETA
Otis
Mem Martins, Portugal
It is very important that we operate our business in an ethical manner. Being responsible for ensuring this is very rewarding. I appreciate the trust and accountability the organization has placed upon me as an individual.
SANTOSH SETTY
UTC Aerospace Systems
Bengaluru, India
All of us with Chengdu Aerotech Manufacturing are working hard to make this facility the world-class center of excellence for Pratt & Whitney in the region. We believe the highest standards of ethics and business conduct are fundamental to our success.
LILY XU
Pratt & Whitney
Chengdu, China

Leading in the Community

Our people lead in their communities — volunteering time, talent and expertise. We celebrate and encourage their efforts because we believe United Technologies and our employees can have a positive impact in our communities around the world.

Make Things Better

To learn how our employees are making things better, visit www.utc.com/makethingsbetter.

FIRST Robotics: Pratt & Whitney engineers Renee Jurek and Patrick Booth exemplify our commitment to make things better. As volunteer mentors for Athena’s Warriors — a high school team from West Hartford, Conn. — they share their time and expertise and help to build a robot for competition. Also mentoring the team are Pratt & Whitney colleagues Monica Mohtasham and Eric Savage (not shown).
Junior Achievement: Austin Dadio, a financial leadership program associate, celebrates the end of the day with students at Naylor School in Hartford, Conn. Dadio is one of several hundred UTC employees who volunteer in schools across the United States with Junior Achievement, a financial and business literacy program.
China Children & Teenagers Fund: Tony Black, president and managing director of Otis China Limited, celebrates a partnership with the China Children & Teenagers Fund, which promotes safety education. UTC supported the publication of a children’s book covering topics ranging from home security and safety on the road to instructions for riding elevators.

Make Things Better

Building Sustainable Cities By Building a Better Tomorrow

To promote environmental responsibility through sustainable building practices, UTC is a founding sponsor of the U.S. Green Building Council’s Center for Green Schools. The center is working to transform schools to make them more energy efficient, less expensive to operate and healthier places to learn and work.

Advancing STEM Education By Nurturing the Next Generation

To support the development of the next generation of engineers and scientists, UTC supports programs that advance science, technology, engineering and mathematics education. One of our signature partnerships is with FIRST Robotics, a high school robotics competition. UTC employees are mentoring teams across North America, including the 2012 world champions — Team 180 from Stuart, Fla. — sponsored by Pratt & Whitney.

Supporting Vibrant Communities By Being Part of the Solution

To enhance the well-being of the communities in which we operate, UTC encourages growth and vitality through positive engagement. For example, UTC and its employees volunteer with the China Library Project, donating books and building libraries in elementary schools across China. Within the first year, the program reached more than 23,000 students and 1,300 teachers.