2022 ESG 报告-OTISVIP专享VIP免费

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2022 ESG Report

Every move we make is focused

on the future for a stronger,

more sustainable tomorrow.

2022 ESG REPORT 2

Contents

3ESG AT OTIS

13 HEALTH & SAFETY

19 ENVIRONMENT & IMPACT

28 PEOPLE & COMMUNITIES

37 GOVERNANCE & ACCOUNTABILITY

50 APPENDIX

2022 ESG REPORT 3

Otis is the world’s leading elevator and escalator manufacturing, installation

and service company, having pioneered the elevator business 170 years ago.

Today, with approximately 69,000 Otis colleagues, we move 2 billion people

a day in more than 200 countries and territories around the world. Otis has

global scale and local focus, with over 1,400 branches and ofces and a direct

physical presence in approximately 80 countries. We maintain approximately

2.2 million customer units globally – the world’s largest portfolio.

Our business is strategically linked to the megatrend of urbanization, a

result of global economic growth and expansion of the middle class. These

advancements bring new opportunities and challenges that require new

solutions. As customer demands increase, we meet these challenges across

a wide range of verticals and end markets, and leverage technology for

safer, more sustainable, more reliable rides, and improved customer service

and passenger experiences. We focus on product innovation to deliver

projects that serve buildings from just a few stories high to the tallest, most

recognizable residential and commercial buildings and transportation hubs in

the world. All told, we help build and transform modern cities and improve

lives in the communities where we live and work.

Our business model focuses on New Equipment share gain and Service

portfolio growth. New Equipment makes vertical transportation within

buildings and infrastructure possible, while Service ensures that equipment

runs safely and reliably. The modernization of elevators installed decades

ago offers new efciency and energy-saving opportunities for our customers

and a safer environment for our colleagues, subcontractors and passengers.

Innovations in the elevators and escalators we produce and the way we

do business, including the development of digital technologies, drive more

efcient and safer operations and improve our environmental impact.

About Otis

HEALTH & SAFETY ENVIRONMENT & IMPACT PEOPLE & COMMUNITIES GOVERNANCE & ACCOUNTABILITY APPENDIXESG AT OTIS

MODERNIZATION

•

Attractive

business

model

MAINTENANCE

& REPAIR

NEW

EQUIPMENT

/84

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2022ESGReportEverymovewemakeisfocusedonthefutureforastronger,moresustainabletomorrow.2022ESGREPORT2Contents3ESGATOTIS13HEALTH&SAFETY19ENVIRONMENT&IMPACT28PEOPLE&COMMUNITIES37GOVERNANCE&ACCOUNTABILITY50APPENDIX2022ESGREPORT3Otisistheworld’sleadingelevatorandescalatormanufacturing,installationandservicecompany,havingpioneeredtheelevatorbusiness170yearsago.Today,withapproximately69,000Otiscolleagues,wemove2billionpeopleadayinmorethan200countriesandterritoriesaroundtheworld.Otishasglobalscaleandlocalfocus,withover1,400branchesandofficesandadirectphysicalpresenceinapproximately80countries.Wemaintainapproximately2.2millioncustomerunitsglobally–theworld’slargestportfolio.Ourbusinessisstrategicallylinkedtothemegatrendofurbanization,aresultofglobaleconomicgrowthandexpansionofthemiddleclass.Theseadvancementsbringnewopportunitiesandchallengesthatrequirenewsolutions.Ascustomerdemandsincrease,wemeetthesechallengesacrossawiderangeofverticalsandendmarkets,andleveragetechnologyforsafer,moresustainable,morereliablerides,andimprovedcustomerserviceandpassengerexperiences.Wefocusonproductinnovationtodeliverprojectsthatservebuildingsfromjustafewstorieshightothetallest,mostrecognizableresidentialandcommercialbuildingsandtransportationhubsintheworld.Alltold,wehelpbuildandtransformmoderncitiesandimprovelivesinthecommunitieswhereweliveandwork.OurbusinessmodelfocusesonNewEquipmentsharegainandServiceportfoliogrowth.NewEquipmentmakesverticaltransportationwithinbuildingsandinfrastructurepossible,whileServiceensuresthatequipmentrunssafelyandreliably.Themodernizationofelevatorsinstalleddecadesagooffersnewefficiencyandenergy-savingopportunitiesforourcustomersandasaferenvironmentforourcolleagues,subcontractorsandpassengers.Innovationsintheelevatorsandescalatorsweproduceandthewaywedobusiness,includingthedevelopmentofdigitaltechnologies,drivemoreefficientandsaferoperationsandimproveourenvironmentalimpact.AboutOtisHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTISCustomerLoyaltyServiceConversionMODERNIZATIONOn&OffPortfolio•Recaptures•RetentionAttractivebusinessmodelMAINTENANCE&REPAIRNEWEQUIPMENT2022ESGREPORT4AmessagefromourCEOJudyMarks,Chair,ChiefExecutiveOfficerandPresidentOurvision,asindustryleader,istogivepeoplefreedomtoconnectandthriveinataller,faster,smarterworld.Weembracetheresponsibilitytohonorthegenerationsthatcamebeforeus,todeliverforthegenerationsoftodayandtosponsorthegenerationsthatcomeafterus.Itisaboutdoingtherightthingforourplanet,customers,colleagues,shareholders,andthecommunitieswhereweliveandwork.Environmental,SocialandGovernance(ESG)ispartofourculture,integraltosettingourvisioninmotionandembeddedinourlong-termstrategy.ItisnocoincidencethattheprinciplesofESGalignwellwiththefoundationofourbusiness:ourAbsolutesofSafety,EthicsandQuality.Safetywascoretoourbeginnings170yearsagoandremainsatoppriorityinourworktoday–forcolleagueswhodesign,installorserviceourelevatorsandescalatorsandforthe2billionpassengerswhorideonthemdaily.Ourreputationisparamount,andweupholdthehigheststandardsofEthicsthroughstronggovernanceandaspiritofintegrity–alwaysdoingbusinesstherightway.Webelievethatallofus“own”Quality.Wedeliverqualityresultsateveryturnacrossourproduction,installation,andmaintenanceandrepairprocessesaswellassales,marketingandfinancialreporting.Ourbusinesssuccessrequirescontinuousgrowthandimprovement,andESGisanareawhereweandourstakeholdersrightlyexpectprogress.Lastyear,inourinauguralESGreportasanindependentcompany,wemadeclearourdedicationtothefourpillarsthatarefundamentaltoourESGstrategy:Health&Safety,Environment&Impact,People&Communities,andGovernance&Accountability.Weholdourselvesaccountablewiththeaddedstepoftyingexecutiveshort-termincentivecompensationtoESGgoalperformance–specifically,achievinggenderparityamongexecutivesandmanagingourenvironmentalfootprinttoreducegreenhousegasemissions.ESGadvancementisembeddedinoursuccessthroughstrongfinancialresultsandtheimpactwemakeinthecommunitieswherewedobusiness.Inthisreport,wearepleasedtoshareinitiativesandprogresstowardour13ESGgoalsandourcommitmenttofosteramoresustainable,inclusiveworld.Weaimtotransparentlyprovideupdatestowardourgoalswhilecelebratingimportantmilestones.Amongtheupdatesinthisreport:•Health&Safety:Weremaincommittedtoachievingazero-harmworkplaceandlaunchedFieldStandardPracticestoidentify,trackandrectifyareasofhigh-riskworkactivities.Ifanincidentdoesoccur,weperformextensiveroot-causeanalysestomakeimprovementsandhelppreventrecurrence.•Environment&Impact:Inafirstfortheelevatorindustry,ourFlorence,SouthCarolina,U.S.,facilityachievedgold-levelTRUEcertificationforitszero-wasteefforts.AndwebuiltanewfactoryinSanSebastian,Spain,thatusedcertainsustainableconstructionmaterialsandispoweredbyelectricitygeneratedfrom100%renewableresources.•People&Communities:Welaunchedasetofprogramstosupportusinacceleratingdevelopmentofdiversetalent,femaleleadershipandourcultureofinclusion.Theseprogramsarehelpingusensurethatourworkforcereflectsthecommunitiesweserve.Weareonaresponsibleandsustainablepathtoreachgenderparityinourexecutiveranksby2030,havingincreasedfemaleexecutiverepresentationfrom36%in2021to39.2%in2022.•Governance&Accountability:MembersofourBoardofDirectorsaredeeplyexperiencedseniorexecutivesacrosssectorsthatincludeassetmanagement,automotive,consumerproducts,manufacturingandprofessionalservices.WeseektoenhanceBoarddiversityinotherdimensionsaswell.WiththeadditionofournewestBoardmemberinOctober2022,sixofour10membersarewomen,racially/ethnicallydiverseorboth.Aswecontinuouslyworktoadvanceourstrategy,cultureandESGgoals,wearedoingsofromapositionofstrength.Iamconfidentthatinthisreportyou,ourstakeholders,willseetangibleprogresstowardlimitingcarbonemissions,reducingandreusingenergy,promotingequity,inclusivityanddiversity,andprovidingopportunitiesforall.WelookforwardtocontinuingourESGjourneyalongsideyou.Withgratitude,JudyMarksHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT5AboutourbusinessIn2022,webuiltonoursuccess,focusingonourlong-termbusinessstrategy,agileleadershipandanunwaveringcommitmenttoTheOtisAbsolutesofSafety,EthicsandQuality.WedeliveredsolidfinancialperformanceandcontinuedtosupporttheevolvingneedsofourcustomersandpassengersaswefosteranenvironmentwhereinnovationandcontinuousimprovementarerewardedandallOtiscolleaguesfeelsafe,welcomedandheard.~69Kcolleagues~41Kfieldprofessionals$1.45Bfreecashflow$2.1Badjustedoperatingprofit$13.6Badjustednetsales$3.17adjustedEPS2.5%organicsalesgrowthFullyear2022results,seepages81-82foradditionalinformationregardingnon-GAAPfinancialmeasures.2022BYTHENUMBERS6.6%NewEquipmentadjustedmarginadjustednetsales23.5%Serviceadjustedmarginadjustedoperatingprofit17%83%57%43%ServiceNewEquipment~2.2MunitsundermaintenanceHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT6NEWEQUIPMENTWedesign,manufacture,sellandinstallawiderangeofpassengerandfreightelevators,aswellasescalatorsandmovingwalkways,forresidential,commercialandinfrastructureprojects.In2022,ourNewEquipmentsalesinChinaandtheAmericas,eachrepresentedapproximatelyone-thirdofourNewEquipmentnetsales,whileChinarepresentedoverhalfofourglobalNewEquipmentunitvolume.Wehavedevelopedarangeofelevatorandescalatorsolutionstomeettheneedsandobjectivesofourdiversecustomers.TheGen2familyofelevatorsisourprincipallow-andmid-riseelevatorsolution.Sinceitslaunchin2000,Gen2hasbeenourbest-sellingelevatorplatform,withmorethan1millionunitssoldglobally.In2021,weintroducedGen2successors:theGen3andGen360digitalelevatorplatforms.TheseplatformsenhanceGen2’sspace-saving,energy-efficientdesignwiththeconnectivityoftheOtisONEIoT(internetofthings)digitalserviceplatform.TheGen360platformalsooffersadditionalsafetyfeaturesforpassengersandfieldprofessionalswhomaintaintheelevator.Fortaller,high-risebuildings,ourmostadvancedproductistheSkyRiseelevatorsolution.TheSkyRiseplatformcombinescutting-edgetechnologiesandprecisionengineeringtodeliversolutionsforresidential,commercialandmixed-useskyscrapers.Inadditiontoelevatorsolutions,weofferescalatorsandmovingwalkways.WetypicallysellNewEquipmentproductsdirectlytoourcustomersthroughourNewEquipmentsalesforce.NewEquipmentcustomersincluderealestatedevelopersandgeneralcontractorswhodevelopand/ordesignbuildingsforresidential,commercial,retailormixed-usepurposes.WealsosellNewEquipmentproductstogovernmentagenciestosupportinfrastructureprojects,suchasairports,railwaysormetros.Additionally,incertaingeographies,consistentwithmarketpractices,wesellourproductsthroughagentsanddistributors.Aboutourbusiness(continued)Gen2Gen3Gen360SkyRiseHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT7SERVICELikeotherelectromechanicalequipment,elevatorsandescalatorsaresubjecttowearandtear,whichovertimeerodesfunctionality.Asaresult,ourServicesegmentisacriticallyimportantandvaluablepartofourbusiness.Weperformmaintenance,repairandmodernizationworkforelevatorsandescalators.Wehaveamaintenanceportfolioofapproximately2.2millionunitsglobally,whichincludesOtisequipmentmanufacturedandsoldbyus,aswellasequipmentfromotheroriginalequipmentmanufacturers.ThroughournetworkofServicesalespersonnel,wesellourservicesdirectlytocustomersinallsignificantelevatorandescalatorverticalsaroundtheworld.Servicecustomersaretypicallycomposedofbuildingowners,facilitymanagers,housingassociationsandgovernmentagenciesthatoperatebuildingswhereelevatorsandescalatorsareinstalled.CustomerssecuringmaintenanceserviceforelevatorsarefrequentlydifferentfromthosewhoinitiallymakepurchasingdecisionsforNewEquipment.Weseektogrowourmaintenanceportfoliothroughconversionofnewlyinstalledunitsintomaintenancecontracts,throughprospectingandwinningunitsalreadyinservicefromcustomersusinganotherserviceprovider,andthroughsmallacquisitions.OurServicesalespersonnelseektowincontractsontheexpirationorterminationofexistingonesbyofferingasuperiorvalueproposition:serviceexcellence;anengagedandtechnicallysophisticatedgroupoffieldtechnicians;astreamlinedcustomerexperience;andstrongelevatorandescalatoroperatingperformance.Ourservicesincludeinspections,preventivemaintenanceandothercustomizedmaintenanceofferingstailoredtocustomerneeds.Abasicmaintenancecontractprovidesforinspectionconsistentwithlocalregulatoryrequirements.Weofferincremental,tieredmaintenanceandserviceofferingsthathavevaryinglevelsofcoverageuptoandincludingcomprehensivecomponentreplacementcoverage.Wealsoprovidecustomerswithrepairservicestoaddressequipmentandcomponentwearandtearorbreakdowns.Servicecontractdurationdependsonseveralfactors,includingcustomerneeds,regulatoryrequirements,andindustryandgeographicdynamics.Forexample,customersowningoroperatinglargepropertiesorportfoliosofpropertiestendtoexecutelong-termmaintenanceagreements.Asequipmentages,wealsoworkwithcustomerstoreneworrefreshtheirelevatorswithmodernizationsolutionsthatenhanceequipmentoperation,reduceenvironmentalimpactandimprovebuildingfunctionality.Modernizationofferingscanrangefromrelativelysimpleupgradesofinteriorfinishesandaestheticstocomplexupgradesoflargercomponentsandsubsystemstofullreplacements,whichcanultimatelyreduceourcustomers’environmentalfootprint.Weprovideserviceofferingstoourcustomersthroughaglobalnetworkofapproximately34,000Servicemechanicsoperatingoutofover1,400branchesandoffices,typicallylocatednearpopulationcenters.Thesehighlytrainedmechanicsarecriticaltoourabilitytodeliverexcellentservicetoourcustomers.Aboutourbusiness(continued)~34,000servicemechanics>1,400branchesandoffices2022ESGREPORT7HEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT8AlignmentofOtisbusinessstrategywithESGpillarsAboveall,wearecommittedtothehealthandsafetyofourcolleaguesandtheridingpublic.Westrivetoreducetheenvironmentalimpactofourownproducts,operationsandservicestosupportourcustomers’ESGgoals.Wefosteraculturethatembracesallvoicesanddiversepointsofviewandproactivelyengagewiththecommunitiesweserve.Westrivetoactwithintegrity,everytime,everywhere.Weunderstandthatthewayweactmatters.In2022,wecontinuedtobuildonthatvisionandlegacy,carryingourgroundbreakinginnovationsforwardbyfocusingontechnologyforsafer,moresustainablerides,improvingcustomerserviceandpassengerexperiences,andexpandingourdiversitystrategytobecomeamoreinclusiveworkplace.Asourroleintheworldexpands,wearewinningmoreNewEquipmentcontracts,maintainingalargerportfolioandmodernizingmoreelevatorsystems,whileleveragingdigitaltoolstomakeussmarter,moreefficientandmoreproductive.Weviewdigitalizationasakeytoimprovingcustomersatisfaction,upskillingandenhancingtheproductivityofourworkforce,andreducingourenvironmentalfootprint.TheOtisAbsolutesofSafety,EthicsandQualityarecoretoourpeopleandourbusiness.Withunifiedcommitment,theseAbsolutesaretheguidingprinciplesthatdefineus,shapehowweworkandsetusapart.Whilewearemanyvoices,weshareacommongoal:tobeourabsolutebest.Itissimplywhoweare.WehavecodifiedTheOtisAbsolutesinaclearandcomprehensivedocumentdesignedasablueprintforallOtiscolleagues.Itestablishesstandardsofconductandenablesethical,value-baseddecision-making.Complementarycompanypoliciescovertopicssuchasantitrust,anti-corruption,internationaltrade,humanrightsandotherkeycomplianceriskareas,whichwediscussthroughoutthisreport.OurbusinessstrategyandESGfocusareassupportoureffortstowardastronger,moresustainableandmoreinclusivetomorrow.HEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT9ESGatOtisThefourpillarsthatdriveourESGstrategyareintegratedwithinourlargercorporatestrategyandcreatevalueforourcolleagues,communities,customersandshareholders.HEALTH&SAFETYSafetyisattheheartofourbusiness,andweprioritizethehealthandsafetyofourpassengersandcolleagues,includingapproximately41,000highlyexperiencedfieldprofessionalswhoinstallandserviceequipmentaroundtheworld.ENVIRONMENT&IMPACTAswehelptheworld’scitiesgrowandpeoplemove,wearecommittedtomanagingourimpactontheenvironment.Wearereducingouremissionsbymeasuringandmanagingtheenvironmentalimpactofourproductsandoperations,includingourfactories,realestateandfleet.Aroadmapisinplacetocontinueourprogressinmakingpositiveimpactsacrossourvaluechain.PEOPLE&COMMUNITIESOtisiscommittedtofosteringaninclusiveculturewhereeveryvoicefeelssafe,welcomedandheard.Westrivetocontinuecultivatinganenvironmentwheregrowthandinnovationarecelebrated.Byensuringanequitableandinclusiveworkenvironment,weempowerourpeople.Andthroughourcommunityimpactinitiatives,weinteractmeaningfullyandcreatepositivechangeinourcommunities.GOVERNANCE&ACCOUNTABILITYWeupholdthehigheststandardsforstronggovernance,ethicsandintegrity,whicharedrivenbyourAbsolutes.ManagementisresponsibleforexecutingtheOtisstrategy,includingourESGstrategy,andtheBoardofDirectors(Board)activelyengageswithmanagementtoguide,informandadviseforlong-termvaluecreation.Theseguidingprinciplesgovernhowwethink,howwemakedecisions,andhowweacteveryday,everywhere.HEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTISOurcollectivecommitmentandvisioninmotionIntegratingourstrategicpillarsandourESGcommitmentstodriveshareholdervalueCONNECT&THRIVESustainNewEquipmentgrowthAccelerateServiceportfoliogrowthAdvancedigitalizationFocus&empowerourorganization2022ESGREPORT102022ESGataglanceESGSTANDARDSWeareasignatoryoftheUnitedNationsGlobalCompact,andwereportunderthefollowingframeworks:GlobalReportingInitiative(GRI)Standards,SustainabilityAccountingStandardsBoard(SASB)guidelinesfortheResourceTransformationsector(withElectrical&ElectronicEquipmentandIndustrialMachinery&Goodsassubsectors,whenapplicable),andtheTaskForceonClimate-relatedFinancialDisclosures(TCFD)recommendations(seepages58-76).WealsosubmittoCDP,originallyknownastheClimateDisclosureProject,wherewereceivedaB,ascoreforcompaniesthat“haveaddressedtheenvironmentalimpactsoftheirbusinessandensuregoodenvironmentalmanagement.”Weengagethirdpartiesforlimitedassurancecoveringcertainhealthandsafety,environmentandimpact,andpeopleandcommunitiesmetrics(seepages77-80).KEYPERFORMANCEINDICATORS(KPIs)SUMMARYIn2021,weestablished13goalswithinourfourpillarsandalignedwiththeU.N.SustainableDevelopmentGoals(SDGs).In2022,wecontinuedtobuildonourESGstrategiestodeliverlong-termsustainabilityvaluetoourstakeholdersandmadeprogressonourESGgoals,asdescribedbelow.TotalRecordableIncidentRateandLostTimeIncidentRate.EnvironmentaldatareflectsadjustmentstoremoveRussiabusiness(whichhasbeendivested)fromthebaselineandsubsequentyears.HEALTH&SAFETYGOAL2022RESULTSSDGALIGNMENTCommittoachieveazero-harmworkplace3fatalinjuriesTRIR=0.57,LTIR=0.17Educateallfieldprofessionalsandfieldsubcontractorsannuallyonlife-savingCardinalRulesFieldprofessionalsandfieldsubcontractorsareeducatedthroughcommunications,safetytraining,safetyeventsandotherchannelsExpandavailabilityofwell-beingandresilienceservicestoallcolleaguesworldwidethroughanEmployeeAssistanceProgramby2023Goalachievedin2022:100%OtiscolleaguescoveredENVIRONMENT&IMPACTGOAL2022RESULTSSDGALIGNMENTAchievea50%reductionofScope1andScope2emissionsby203011%reductionfrom2019to2022,and4.8%reductionfrom2021to2022.AddedanESGperformancemultipliertoourexecutiveshort-termincentiveprogram,whichmayincreaseordecreasethepayoutfactorReachcarbonneutralityforfactoryelectricityby203047%offactoryelectricityconsumednowcarbonneutralAchieve100%factoryeligibilityforzero-waste-to-landfillcertificationby202554%programelementsimplementedcomparedto23%in2021,basedontheGBCITRUE(TotalResourceandUtilizationEfficiency)programmethodologies.OurFlorence,SouthCarolina,U.S.,facilityreceivedTRUEZeroWasteGoldcertificationin2022CompleteISO14001certificationforallfactoriesby2025Goalachievedin2021:100%offactoriescertifiedOtisachievedaGoldsustainabilityratingfromEcoVadis.HEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT112022ESGataglance(continued)Diversesupplierisdefinedasasupplierthatisatleast51%ownedbyanindividualorgroupthatisunderrepresented(i.e.,minority-,women-,veteran-,LGBTQ+ordisability-owned),asmallbusinessand/oroperatinginaneconomicallydisadvantagedlocationbasedontheU.S.SmallBusinessAdministrationdefinitions.GOVERNANCE&ACCOUNTABILITYGOAL2022RESULTSSDGALIGNMENTAwardatleast20%ofU.S.supplierspendannuallytodiversesuppliers>20%awardedPEOPLE&COMMUNITIESGOAL2022RESULTSSDGALIGNMENTAchievegenderparityinourexecutiveranksby203039.2%femaleexecutives,a3.2pointincreasefrom2021.AddedanESGperformancemultipliertoourexecutiveshort-termincentiveprogram,whichmayincreaseordecreasethepayoutfactorIncreasecolleaguefavorabilityfortheinclusiveculturecategoryinthecompany’sengagementsurveyby4percentagepointsby2025(againstabaselineof71%favorability)72%favorabilityachieved,a1pointincreasefromourbaselineDirect50%oftotalglobalgivingtoscience,technology,engineeringandmath(STEM)programsby202551%Impact15,000studentsgloballythroughSTEMfocusedprogrammingacrossthelearningandvocationaltrainingcontinuumtoimprovelivelihoodsandhelpbuildtheworkforceoftomorrowby2030~1,600studentsimpacted>2,500cumulativestudentsimpactedDedicate500,000cumulativecolleaguevolunteerhoursinsupportofvibrantcommunities,STEMeducationandsocialequityeffortsgloballyby2030>43,000volunteerhoursKPIsSUMMARY(CONTINUED)HEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT122022and2023OtisawardsandaccoladesTheWorld’sTopFemale-FriendlyCompanies–Forbes,2022World’sBestEmployers–Forbes,2022America’sMostResponsibleCompanies–Newsweek,2022and2023BestPlacestoWorkforLGBTQ+Equality–HumanRightsCampaignFoundation,2022World’sMostAdmiredCompanies–FORTUNE,2022and2023NoteworthyCompanies–DiversityInc,2022JapanPRIDEIndex2022–workwithPride(wwP),2022TopEmployerinChina–TopEmployersInstitute,2022CIO100–CIO,2022INNOSTAR–KoreaManagementRegistration,2022and2023ProjectoftheYear:TaichungMassRapidTransit(MRT)GreenLine(Taiwan)–ElevatorWorld,January2022ProjectoftheYear:EastRailLine-CrossHarbourExtension(HongKong)–ElevatorWorld,January2023ProjectoftheYear:22Bishopsgate,London–ElevatorWorld,January2023Top100GlobalInnovators–Clarivate,202381NewgateStreet,London,UnitedKingdomThis1980sofficeblockisbeingtransformedintoamodernmixed-usedevelopmentasagatewaytoLondon’sCultureMile.Developersaspirefor81NewgateStreettobeLondon’sfirstnet-zerocarboncomplexatitsexpected2025opening.Otisiscontributingtothisaspirationwith:•23Gen2StreamelevatorsequippedwithReGendrives•Compass360,ourdestination-managementsystem•SixLINKescalatorsChahuadineighborhood,Shenzhen,ChinaShenzhenishometomorethan17millionpeopleandisknownasChina’sSiliconValley.OtiswasselectedtosupportamajorurbanrenewalintheChahuadineighborhood,installingapproximately280elevatorswithdigitalsolutions,includingourOtisONEIoTplatform.Theprojectincludesmorethan200OtisSkyRiseelevators,whichcomestandardwithourenergy-savingReGendrives,andourpermanent-magnetSkyMotionmachines,amongthemostenergy-efficientavailable.ChahuadiwasalsothefirstprojectinChinatouseOtisSkyBuildunitsforfaster,safertransportofconstructionteams.SkyBuildcabsincludeangledroofstoprotectworkersfromoverheadorfallinghazards.CustomerSpotlightsHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXESGATOTIS2022ESGREPORT13Health&SafetySafetyisoneofourAbsolutes.WemakeemployeehealthandsafetyanintegralcomponentofthebusinessprocessesthatimpactOtisproducts,servicesandoperationstopreventcolleagueandsubcontractorinjuriesandfatalities.Ourfundamentalwork-safetyprinciplesaretheCardinalRules.Itisimperativethattheserulesarefollowed.Astheleaderoftheelevatorandescalatorindustry,weholdourselvestothehighestsafetystandards.Weactivelyworktoensurethatourworkplacesaresafe,andourcolleaguesandsubcontractorshavetools,trainingandsupporttocreateandsustainaninjury-freeenvironment.ESGATOTISENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXHEALTH&SAFETYWewillnotbesatisfieduntilourworkplacesaresafefromhazards,colleaguesareinjury-free,andproductsandservicesremainsafefortheridingpublicandeveryonewhointeractswithOtisequipment.Ourfundamentalwork-safetyprinciplesaredesignedtodealwiththehazardsinourindustry–fromfallprotectioninthehoistwaytocontrollingelevatorandescalatormovementduringserviceandelectricalsafetyproceduresonthejobsite.OtisCardinalRulesAlwaysensureprotectionfromfallingwhereafallhazardexists.Alwaysfollowlockandtagoutprocedureswhenpowerisnotrequired.Alwaysusegroundfaultcircuitinterruptersonportablecordedelectrictoolsanddevices,otherthanauthorizedusesinOtisfacilities.Alwaysidentifyconfinedspacesandfollowwrittenproceduresforentry.Neverworkorpositionbodypartsinproximitytounguardedmovingpartsorelectricalcircuits.ElevatorAlwaysmaintaincontroloftheelevatorwhenaccessing/egressingthehoistway,workingonthecartoporinthepit.Alwaysfollowtheoperation’sauthorizedcontrolprocesseswhenusingjumpersandshunts.Alwaysfollowtheoperation’sauthorizedproceduresforhoistingandriggingandmechanicalblockingofelevatorequipment.Alwaysfollowtheoperation’sauthorizedproceduresforfalsecars/runningplatforms.Neverridethecartopwiththeelevatorinnormaloperation.EscalatorAlwaysuseinspectioncontrolstooperateormovethestepchain.Alwaysverifytheproperfunctioningoftheescalator’semergencystopswitchpriortoenteringthemachineroomorthepit.Alwaysuseeffectivebarriersandwarnings,andblocktheunitelectricallyandmechanically,whenleavingtheescalatorunattendedwithsteps/palletsremoved.Alwayssecurethestepchainfrommovementbytwoindependentmeanswhenworkisperformedinthetruss.Neverwalkonstepaxles.Neverridetheescalatorwithsteps/palletsremovedunlessthereisonlyoneopening,theopeningisbarricaded,theunitisoninspection,andthereareclearmodesofcommunicationtoensurethatallpersonnelareawareofwhenandhowtheunitwillmove.2022ESGREPORT14Weengagecolleaguesandoursubcontractorsthroughglobalcampaignsandprograms,andweusevariousleadingandlaggingindicatorstoassessourprogressandmeasurethesuccessofoursafetyprogram.Leadingindicatorsincludekeysafety-trainingcompletionrates,operationsandcolleagueauditscores,andcolleaguesurveyscores,undersuchprogramsasFocusedFieldAuditsandFatalityPreventionAudits.OurlaggingindicatorsareTotalRecordableIncidentRate(TRIR),LostTimeIncidentRate(LTIR),fatalinjuriesandseriousinjuries.Allleadingandlaggingindicatorsarereportedtoseniorleadershipregularly.Wealsoleverageourglobalexpertiseandexperiencetoseekfeedbackonprogramenhancementsandemergingissues.TwomainvehiclesweusetogatherthisinformationareourFieldSafetyCouncilandFactorySafetyCouncil.FieldSafetyCounciliscomposedofcross-functionalsubjectmatterexperts(SMEs)fromEnvironment,HealthandSafety(EH&S),fieldoperationsandengineering.Thiscouncilprovidesstandardizedprocedures,toolingandcontrolmeasuresaimedatlessimprovisationandultimatelyfewerseriousincidentsinthefield.FactorySafetyCouncilprovidesanopportunityforallglobalfactoriestodiscusscommonchallengesandsharebestpractices.Itisalsousedtodiscussprogressontheimplementationofglobalinitiativesandotherprogramenhancements.AllOtiscolleaguesandsubcontractorsareempoweredwithStopWorkAuthority.Thisprogram,whichwasformallyinitiatedin2019,empowersanycolleagueorsubcontractortostopworkonanyjob,duringanyactivity,atanytime,intheeventofasafetyconcern–andtoraisetheconcerntotheirimmediatesupervisor.Theythenworktogethertoaddresstherisk.Ourmechanics,supervisorsandsubcontractorsaroundtheglobereceivecontinualtrainingaboutthisauthorityandmanyothersafetymeasures.TrainingonStopWorkAuthority,metricsaroundwhenandwheretheauthorityhasbeenexercised,andrecognitionofourcolleaguesandsubcontractorsfordoingtherightthingaretrackedgloballyandreportedtoseniormanagement,includingourCEOandBoard.Goal:Committoachieveazero-harmworkplaceOtisaimstoachievezerofatalitiesandseriousinjuriesacrossourworkforce.StopWorkAuthorityinpracticeOtiscolleaguesandoursubcontractorsareempoweredtostopworkiftheyseeanunsafeconditionorabehaviorthatmightcauseinjury.Whileinstallinghoistwaywiring,asubcontractorinItalybecamealarmedbythestrongsmellofgasinsidetheelevatorshaft.Concernedaboutthegascreatingadangerousconditionforhimselfandtheentirebuilding,thesubcontractorinitiatedOtis’StopWorkAuthorityandcontactedthefiredepartment.Thefiredepartmentarrivedquicklyandfoundagasleakseepingthroughthebuilding’selectricalductworkintotheelevatorshaft.ThisexampleshowsthehazardsourfieldcolleaguesandsubcontractorsfaceandhighlightstheimportanceofourAbsolutesandtheneedtoalwaysremainvigilant.ESGATOTISENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXHEALTH&SAFETYNumberofSWAEventsStopWorkAuthority(SWA)Utilization202120221,500+4,500+2022ESGREPORT15Goal:Committoachieveazero-harmworkplace(continued)AlignedwithOtispolicy,incidentsofalltypes–regardlessofseverity–mustbereportedtosupervisors.Eventsinvolvinglosttimeorthatresultineitherrestrictedworkactivityorrequiremedicaltreatmentbeyondfirstaidmustbeformallyreportedinoursafetydatamanagementsystem.Investigationofincidentsareconductedbytheaffectedoperationandregion,asappropriate.In2022,theOtisTRIRof0.57andLTIRof0.17representeda7%reductionand11%reduction,respectively,comparedto2015.However,wearesaddenedtoreportthatOtisexperiencedthreefatalinjuries,onetoanOtiscolleagueandtwotosubcontractors,in2022.Thesetragediesshowthat,despitestronggovernance,controlsandprocedures,wemustremaindiligentinoureffortstoachieveourgoalofazero-harmworkplace.Wearetakingactionstofurtherengagecolleaguesandsubcontractorsandeducateourworkforceaswecontinuetolookforwaystodrivedownseriousandfatalinjuryrates.Whenfatalorseriouseventsoccur,Otishasarobustprocessinplacetoensuretheyarethoroughlyinvestigatedtoidentifyrootcause.Immediatelocalandglobalcorrectiveactionsareidentified,implementedandtrackedtoclosure.Anexampleofglobalcorrectiveactionsisthecreationofacross-functionalteamtoexploretheuseofengineeringsolutionstoreducefieldjobsiterisk,includinghumandetectioninthehoistway.TRIR20152022Improved7%LTIR20152022Improved11%ESGATOTISENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXHEALTH&SAFETY2022ESGREPORT16Goal:Educateallfieldprofessionalsandfieldsubcontractorsannuallyonlife-savingCardinalRulesForthisgoal,thetermssubcontractorandfieldsubcontractorareusedinterchangeably.Itisatypeofsupplierwhoperformsinstallation,maintenance,modernizationorassociatedservicesonbehalfofOtisunderacontractualagreement.In2022,OtisfieldprofessionalsandfieldsubcontractorsengagedinactivitiesaimedatreinforcingtheimportanceofourCardinalRules.Theseengagementsincludedformalandinformalcommunications,classroomtrainingsessions,andthevariousactivitiesandeventsdiscussedbelow.Throughtheselearningopportunities,westressedtheproperapplicationoftheserulesthroughreal-worldexamplesandthesharingofpastexperiencesamongdirectpeers.WecompletedourthirdannualSeasonofSafety,themedControlIsinYourHands,wherewereinforcedthecompany’sstrongsafetyculturebysharingbestpractices,hostinginteractiveworkshops,recommittingtoourlife-savingCardinalRules,andprioritizingongoingtrainingonsafetyproceduresandprotocols.The2022seasonconsistedof24organizedglobaleventsthatincludedcross-functionalparticipation.Ourglobaleventsfocusonourkeyincidentdriverswithspecialfocusonpreventingfatalandseriousinjuries.OnewayweengageourfieldcolleaguesisthroughamotivationalgrouptrainingthatgivesbothOtiscolleaguesandsubcontractorsanopportunitytochallengeoneanotherandbuildknowledgearoundoursafetyprogram.Overall,theprogramhadover30,000participantsin2022andincludedover200,000individualtouchpointswithourcolleaguesandsubcontractors.WealsolaunchedaFieldTrainingCenterofExcellence(COE),whichisdesignedtoeducateourcolleaguesandfieldpartnersonrulesandproceduresthroughcontinuedglobaltrainingprograms.Currently,theCOEisdevelopingacoretrainingcurriculumformechanicsandsubcontractors,focusedontechnicalandsafetytraining.Inaddition,wehavepromulgatedFieldStandardPracticesforhigh-riskworkactivities,promotingacommonapproachonaglobalbasis.WehaveestablishedOtisSafetyStandardsaddressingtheminimumstandardofsafetyforcommonhigh-riskactivities.Forexample,whenwelockandtagoutanelevatortoperformwork,ourstandardsrequireverificationthattheunitisinazero-energystate.Anotherexampleofthestandardsrequireselectricalprotectionifworkingwithin1.5metersofexposedelectricalcomponents.30,000+participants24organizedglobalevents200,000+individualtouchpoints2022SeasonofSafetyESGATOTISENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXHEALTH&SAFETY2022ESGREPORT17Werequireoursubcontractorstomeetglobalrequirementsconcerningtheuseofonlytrainedandauthorizedpersonnel,adherencetoOtismethodsandsafetyrequirements,andothercriticalelements.WeassesssubcontractorriskonactivejobsitesthroughtheuseoftoolssuchasthejobprestartinspectionandFatalityPreventionAudits.Thesetoolsensurethatallsignificantrisksareappropriatelyaddressedbeforeworkcancommenceorcontinue.Inaddition,weassesssubcontractorcompanyriskannuallyandcontinuetoidentifyhigh-risksubcontractorsbasedonasetoffactors,allowingustodriveindividualizedactionplansthataretrackedatthelocalandregionallevelsandreviewedatthegloballevel.Oursubcontractorriskassessmentwasalsousedtograntourfirst-eversuppliersafetyaward.WestrivetoensurethatourCardinalRulesareunderstoodbyallourfieldcolleaguesandsubcontractors,andwechecktheirsafetycompliancethroughauditsandothermeans.WiththeeasingofCOVID-19travelandsiterestrictions,wehavebeenabletoperformmorein-personcomplianceaudits,including:•FocusedFieldAudit:Thisprogramisdesignedtomeasureourfieldoperations’compliancewithourglobalfieldsafetyandmanagementsystemrequirements.•FatalityPreventionAudit:Thisprogramisusedtoevaluatetheperformanceoffieldcolleagueswithrespecttopredeterminedhighriskactivitiesrelatedtoworkingonelevatorsandescalators.•Self-assessmentprogram:Eachofouroperationsisrequiredtoconductaself-assessmentprogramevaluationthatcoverscompliancewithglobalstandardsandtherequirementsoftheOtisEH&SManagementSystem.Fromthisassessment,weidentifyimprovementopportunitiesforimplementationpriortotheformalaudit.Intheeventofnon-compliancewiththeCardinalRules,wetakeappropriateaction,suchasrequiringimprovementsorterminatingourbusinessrelationshipwithasubcontractor.Wealsoaddressspecificrootcausesofviolationsbyprovidingadditionaltrainingandestablishingprocesschanges,procedureupdatesandtoolingimprovements.Goal:Educateallfieldprofessionalsandfieldsubcontractorsannuallyonlife-savingCardinalRules(continued)ESGATOTISENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXHEALTH&SAFETY2022ESGREPORT18AtOtis,wearefocusedonourcolleagues’mentalandphysicalwell-being.Withoutproperassistanceandsupporttheremaybegreaterriskofinjuryorevendeathforcolleaguesorthosearoundthem.OtisoffersmentalhealthsupporttoallOtiscolleaguesthroughOtisCare,anEmployeeAssistanceProgram(EAP),providingamixofwork-lifeservices,24/7livesupportandtreatmentorreferralsforclinicalhealthissues.Italsoincludescoachingformanagersnavigatingcomplexissuesandcriticalincident-responsesupport.Goal:Expandavailabilityofwell-beingandresilienceservicestoallcolleaguesworldwidethroughanEmployeeAssistanceProgramby2023Wearepleasedtoannouncethatin2022OtisCareEAPwasexpandedtocoverallOtiscolleagues–agoalweachievedoneyearearlierthananticipated.2022ESGREPORT18ESGATOTISENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXHEALTH&SAFETY2022ESGREPORT19Environment&ImpactWithcustomersinmorethan200countriesandterritoriesglobally,wemustdesign,manufacture,installandserviceourequipmentresponsiblyandeffectively.Todoso,weoperatethroughmorethan1,400branchesandoffices,17factoriesandaglobalfleetofapproximately22,000vehiclesthattransportourfieldprofessionalstoandfromjobsites.Todate,wehavemadesteadyprogressreducingtheenvironmentalimpactofouroperations,specificallyonScope1andScope2emissions(seebelow)–withagoalofreducingourgreenhousegas(GHG)emissionsby50%by2030.WeareexpandingthoseeffortswiththequantificationofScope3emissions,andweintendtosubmittotheScienceBasedTargetinitiative(SBTi)in2023.Inaddition,wecontinuetomanageandaddresssourcesoffactoryelectricity,industrialandhazardouswaste,andwaterconsumption,andtoexpandthenumberofproductscoveredbyEnvironmentalProductDeclarations(EPDs).Seepage52forfurtherinformation.Broadbusinessbenefitsarebeingrealizedthroughbothenhancedefficiencyandoperationalexcellence.Weareidentifyingopportunitiesforcostreductionandmarginimprovementthroughoursustainabilityefforts,whilealsoaligningourproductswithcustomerdemands.ESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACTWearecommittedtopromotingsustainabilityinourbusinesstosupportourcustomersandcommunities.Wearemanagingourimpactontheenvironmentthroughourfactories,realestatefootprintandvehiclefleet.GLOBALGHGMETRICS000sMetricTonsCO2e,exceptintensity2019(baseline)202020212022Direct(Scope1)GHGemissions142.7132.1134.9131.7Indirect(Scope2)GHGemissions80.471.673.866.8TotalScope1andScope2GHGemissions223.1203.7208.7198.5Scope1andScope2GHGemissionsintensity(metrictonsCO2e/$Mnetsales)17.316.314.614.5ENERGYCONSUMPTIONGWh,exceptintensity2019(baseline)202020212022Totalelectricityconsumed176.9158.1163.8153.0Totalnaturalgasconsumed100.089.495.985.4Totalvehiclefuelconsumed453.3422.3427.7388.2Totalenergyconsumed735.8674.7693.8632.2Energyintensity(MWh/$Mnetsales)57.254.048.546.2TablesabovereflectadjustmentstoremoveRussiabusiness(whichhasbeendivested)fromthebaselineandsubsequentyears.EnvironmentaldataismeasuredannuallyfromDecember1throughNovember30.Includeselectricity,naturalgas,steam,propane,dieselandgasoline.2022ESGREPORT20OtisreducedScope1andScope2GHGemissionsby4.8%in2022,withacumulativereductionof11%versusour2019baseline.Thesereductionsarethedirectresultofmajorinitiativesimplementedoverthelastfewyears,suchasfocusingonfactoryenergymanagement,realestateandfleet.In2022,wealsotookthecriticalactionoflinkingourScope1andScope2GHGemissionreductiongoaltoourexecutiveshort-termincentive(STI)compensationprogram.TheaddedperformancemultipliercanadjusttheSTIawardsupordownby5%basedonourprogresstowardachievingthisgoal.Itisintendedtodriveimmediatenear-termaction.Wecontinuetoassessopportunitiesforemissionreductionsinourbusinessaswedrivetowardourcommitments.FACTORYENERGYMANAGEMENTAcornerstoneofourfactoryemissionreductionprogramistheimplementationofenergybestmanagementpractices.Theseinclude:•Upgradinglightingtohigh-efficiencyLEDs•UpgradingHVAC(heating,ventilationandairconditioning)andboilerequipment•Upgradingbuildingmaterialinsulationandalteringexternalairflow•Optimizingmachineryuseandshutdowntime•AddingbuildingautomationtouseenergyonlywhenneededBytheendof2022,weimplementedover60%offeasibleenergybestpracticesatourglobalfactories.Forexample,inourfactoryinBengaluru,India,weinstitutedaShutitOffprogramandtrainedourcolleaguesontheimportanceofenergy-efficientequipmentusagebyconductingsleepingplanttoursandinventoryassessmentstoidentifyequipmentthatcanbeshutdownwhileidle.InourBristol,Connecticut,U.S.,researchandtestingcenter,weinstalledamoreefficientboiler.Thissignificantchangeresultedinthefacilityhavingarounda13%reductionofitsGHGemissions.AtourFlorence,SouthCarolina,U.S.,manufacturingfacility,webenefitedfromafullyearofLEDlightingsystemsinplaceandupgradedourHVACcontrolsystem.Theseactions,amongothers,contributedtoanalmost14%reductioninGHGemissionsatthefacility.AttwoofourmanufacturingfacilitiesinSpain,weeliminatedtheuseofnaturalgasentirely.OurSãoBernardo,Brazil,plantinstalledvariablefrequencydrivesonkeyprocessequipmentin2022,andourfacilityinTianjin,China,underwentadetailedenergyassessmentbyanenergyconsultanttofindadditionalwaystouseenergyefficiently.Goal:Achievea50%reductionofScope1andScope2emissionsby2030ThediagramsreflectadjustmentstoremoveRussiabusiness(whichhasbeendivested)fromthebaselineandsubsequentyears.Scope1&Scope2ReductionPathway(2019Baseline)Scope1&Scope2GHGEmissionBreakdownESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACT201920222025203011%>20%50%RealEstateFactoriesFleet2022ESGREPORT21Inadditiontotheseefforts,fourofourmanufacturingplantsnowsource100%ofelectricityfromrenewablesources(threeinSpainandoneinGermany).Wealsohaveexpandedonsitesolarelectricitygenerationwiththeinstallationofa178kWpphotovoltaic(PV)systematourfactoryinSouthKorea.Thatsystemisexpectedtoproduce35%ofthesite’selectricitydemandwhilereducingGHGemissionsbyover100metrictonsperyear.Finally,wehaveopenedanewfactoryinSanSebastian,Spain,builtusingcertainsustainableconstructionmaterialswiththeintentionofinstallingon-sitesolarelectricity-generationcapabilities.ThefactoryisintheprocessofbecomingcertifiedLEEDGoldwithatargettobecomeLEEDPlatinumsoonafter.Throughtheseinitiatives,amongothers,wehaveachievedan11%reductionversusour2019baselinemeasurementyear.Wehavemadetremendousprogressintheimplementationofenergy-efficientprojectsandbestpracticesatourglobalfactoriesandintendtofullyimplementallviableopportunitiesoverthenextfewyears.Inaddition,weplantomaximizetheuseofelectricityfromcarbon-neutralsourcesasoutlinedinthenextsection.Goal:Achievea50%reductionofScope1andScope2emissionsby2030(continued)11%reductioninScope1andScope2GHGemissionsversus20192022ESGREPORT21OurfactoryinBengaluru,India,isoneofsevenOtislocationsequippedwithsolararrays.ESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACT2022ESGREPORT22REALESTATEWehaveimplementedbenchmarksandGHGmetricsandembeddedtheminallglobalrealestatedecisionstoensureallstakeholdersunderstandtheemissionimplicationsofrealestatetransactions.Additionally,withtheexpansionofthehybridworkplacemodel,wehavealreadyseenmaterialprogress.Theseinclude:Goal:Achievea50%reductionofScope1andScope2emissionsby2030(continued)WorldHeadquartersWereducedtheutilizedspaceatourWorldHeadquartersinFarmington,Connecticut,U.S.,by62%,whichloweredourenergyutilizationbyapproximately20%.NorthAmericaHeadquartersWeconsolidatedthreelocationsinPalmBeachGardens,Florida,U.S.,toonelocation,whichresultedina67%realestatefootprintreduction.AsiaPacificInthegreaterTokyoareainJapan,wearecompletingamultisiteconsolidation,whichisexpectedtoresultina50%realestatefootprintreduction.Europe,theMiddleEast,andAfrica(EMEA)InMeyreuil,France,weconsolidatedmultiplebranchesandofficesintoonelocation,reducingourrealestatefootprintandenergyutilizationby35%.Wecontinuetoprioritizesustainableconstructionpracticesandmaterialsfornewfacilitiesandremodelingprojects,andtotakeadvantageofrenewableenergysourceswhereapplicabletoreduceemissions.Weremainfocusedonleveragingbenchmarks,GHGmetricsandhybridworkplaceinitiativestoassesstherealestateportfolioforoptimizationopportunitiesglobally.Inaddition,forexistingproperties,wewillleverageenergybestpracticescurrentlybeingimplementedinourfactoriesandincreasetheamountofrenewableenergyweconsumeintheselocations,wherefeasible.ESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACT2022ESGREPORT23ELECTRICVEHICLES(EVs)WithoverhalfofourScope1andScope2GHGemissionscomingfromourfleetofapproximately22,000vehiclesconsumingabout12milliongallonsoffuelperyear,reducingemissionsinthisareaisimperative.WearecurrentlyinthepilotphaseofEVadoption,withabout200EVsdeployedgloballyacross14countries.WeareassessingpilotEVeffectivenessandevaluatingtherighttypesofvehiclesforourbusiness.Wearefindingconstraintsrelatedtovehicleavailabilityduetosupplychainchallenges,vehiclerangenotmeetingtheneedsofourmechanicsinsomegeographiesandvariabilityofcharginginfrastructurecountrybycountry.Inareaswheretheseconstraintsapply,wearefocusingonhybridandplug-inhybridelectricvehicles(HEVs)andcurrentlyhave300ofthosevehiclesdeployed.InJapan,forexample,theinfrastructureisnotsufficientlydevelopedtofullysupportelectricvehiclesyet,sothefleetisbeingswitchedtoeitherHEV,electricmotorbikesorcompactfuel-efficientvehicles.Inadditiontomovingtowardelectricandhybridvehicles,wearealsousingrouteoptimizationsoftwarecombinedwithbusinessprocessesinourServicenetworktoreducetraveltime.OurdigitalOtisONEsolution,alongsideotherconnectivitysolutions,reducescallbacksandimprovesefficiencyinourServicebusiness.Thisisagreatexampleofemissionreductionsembeddedinourbusinessstrategy.Aswemoveforwardin2023,wearefocusedondrivingmoreEVadoptionswherefeasibleandassessingalternativelower-emissionvehicleswhereappropriate.Wearealsocontinuingtogrowourportfolioofdigitallyconnectedunits,expandingopportunitiesforproductivitybenefits.Goal:Achievea50%reductionofScope1andScope2emissionsby2030(continued)SingaporeEVadoptionIn2022,OtisSingaporecommittedtoconvertingitsServicefleettoelectricvehiclesby2024,partneringwithEVCo,acompanyprovidingend-to-endelectric-Mobility-as-a-Service(eMaaS)solutionsforelectrificationofvehicles.TogetherwithOtis,EVCowillassessfleetmobilityneeds,provisioncost-effectiveelectricvehiclesandsupporttheseamlessintegrationofdata-drivenoperatingsystems.Bothpartieswillworktogethertobuildadigitaloperationsplatform,allowinguserstoutilizedataandachieveeffectiveoperationsthroughrouteoptimizationandpreventivemaintenanceofthevehicles.~200EVsdeployed~300HEVsdeployedSingaporeESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACT2022ESGREPORT24In2022,asaresultofourenvironmentalefforts,roughly47%oftheelectricityconsumedbyourfactoryoperationscamefromon-siteandoff-sitecarbon-neutralsources,amid-singledigitpercentimprovementcomparedtothe2021baseline.Otisdefinescarbonneutralaselectricitygeneratedfromgeothermal,solar,sustainablysourcedbiomass(includingbiogas),hydropowerandwindenergyinalignmentwithRE100,aglobalinitiativeofbusinessescommittedto100%renewableelectricity.Asnotedpreviously,fourofourfactories(inSpainandGermany)source100%oftheirelectricityfromrenewablesources.Wecurrentlyhavesevensitesgloballywithsolararrays,includingtheadditionofourfactoryinSouthKorea,asdescribedintheprevioussection.Weplantocontinuetoevaluateourabilitytomaximizetheseresourceswhereeconomicallyfeasibleandallowedbylocalregulatoryrequirements.Alsoin2022,weengagedathird-partySMEtodeveloparoadmapfornotonlyourfactorycarbon-neutralelectricitygoal,butalsoinsupportofourGHGreductiontarget.Thatroadmapoutlinesopportunitiesbetweennowand2030tomaximizetheamountofrenewableenergywecanintegrateintoourdirectoperations.Itincludesadditionalon-sitesolararraysandlocalandregionalcontractstosecurecleanelectricity.Thesecontractsincludepowerpurchaseagreements,virtualpowerpurchaseagreementsandprogramssuchasGreenRetailandGreenTariffs,whichallowustosecurerenewableenergycreditsfromutilities.Withtheroadmapidentified,in2023wewillcreateregion-specificimplementationplanstorealizeopportunitiesidentifiedforboththeshort-andlong-term.Goal:Reachcarbon-neutralityforfactoryelectricityby2030CURRENTCONSUMPTIONOFCARBON-NEUTRALELECTRICITYGWh,except%20212022Carbon-neutralelectricitygeneratedon-site3.13.6Carbon-neutralelectricitypurchased16.717.0Totalcarbon-neutralelectricityconsumed19.820.6Totalelectricityconsumed46.744.2%Carbonneutral42%47%EnvironmentaldatareflectsadjustmentstoremoveRussiabusiness(whichhasbeendivested)fromallyearsshowninthistable.EnvironmentaldataismeasuredannuallyfromDecember1throughNovember30.2022ESGREPORT24ESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACT2022ESGREPORT25Goal:Achieve100%factoryeligibilityforzero-waste-to-landfill(ZWTL)certificationby2025OurFlorence,SouthCarolina,U.S.,factoryisthefirstfacilityintheelevatorindustrytobeTRUEcertified.Through2022,wehaveimplemented54%ofprogramelementsnecessaryforourfactoriestoseekcertificationundertheTRUEframework,administeredbyGreenBusinessCertificationInc.(GBCI).TheTRUEframeworkisaratingsystemthatrequiresfacilitiestodivertatleast90%ofnon-hazardoussolidwastefromlandfill,incineration(waste-to-energy)andtheenvironmentthroughtheadoptionofsustainablewastemanagementandreductionpractices.Thisyearwefocusedonthefollowing:•Implementingprogramsinsupportofsustainablerawmaterialprocurement•Analyzingwaste•DrivingcolleagueandleadershipawarenessAkeyhighlightwasthecreationofanOtisglobalguidancedocument,whichincludedthenecessaryelementsforimplementinganEnvironmentalPreferredPurchasing(EPP)programattheoperatinglevel.Thekeyinitiativesaboveallowedustoreachasignificantmilestonewithinourprogram:InDecember2022,OtisachievedGold-levelTRUEcertificationforzerowasteeffortsatourmanufacturingfacilityinFlorence,SouthCarolina,U.S.TheOtisfactoryisthefirstintheelevatorindustrytobeTRUEcertified.ItisalsothefirstbuildinginfrastructurefactorytobecertifiedinSouthCarolina.AnotherexampleofprogressisourfactoryinHangzhou,China,whichreducedtotalwastebyover300tonsin2022byimprovingrawmaterialutilizationrates.Thisfactorywasrecognizedbythelocalgovernmentasano-wastefactoryunderthe2022ZhejiangProvince-wideWorkPlanforPilotConstructionofa“Waste-FreeCity,”alocalinitiative.Althoughnotrelatedtotheformalzero-waste-to-landfillcertification,wearepleasedwiththelocalteam’sprogresstoearnthisdistinction.In2023,ourfocuswillbeonfurtheringtheimplementationofTRUEframeworkelementsinvolving:•Composting•Closed-looprecycling•DevelopingsustainableinnovationsOurFlorence,SouthCarolina,U.S.,facilityexceedstheTRUEnon-hazardoussolidwastethresholdof90%bykeepingnearly98%ofallsite-generatedwasteoutoflandfillsandincinerators.ESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACT2022ESGREPORT26Goal:CompleteISO14001certificationforallfactoriesby2025In2021,weachievedourgoalofhavingallourfactoriescertifiedISO14001,severalyearsaheadofschedule.ISO14001isaninternationallyagreedstandardthatsetsouttherequirementsforanenvironmentalmanagementsystem.Readmoreinour2021ESGreportonpage36.InadditiontoachievingourISO14001certificationgoal,10ofourfacilitieshavealsoachievedISO50001,theglobalstandardforenergymanagementsystemstoestablish,implement,maintainandimproveenergymanagement.Readmoreinour2021ESGreport,onpage36,here.ESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACTPlanningQuantificationEmissionreductionroadmap•Formcross-functionalteam•Utilizeexistingbusinessdatatoestimateemissions•Identifyprioritycategories•Identifythird-partySME•Enhancequantificationmethod•Confirmidentifiedpriorities•Assessinitialopportunitiestoimpactprioritycategories•Assessandmodeldecarbonizationpathways•Settargetsanddevelopreductionstrategy•Communicateintentionsinternallyandexternally2022ESGREPORT27Atopicthathasbeenahigh-priorityfocusforourorganizationisthequantificationanddisclosureofourScope3GHGemissions.Scope3emissionsincludeallotherindirectemissionsthatoccurintheOtisvaluechainthatareoutsideofourdirectoperations.MuchliketheScope2category,OtisisnotdirectlyresponsibleforthegenerationofactualgreenhousegasintheScope3category.Rather,theemissionsaregeneratedeitherupstreamordownstreamfromourprocessesbyanotheroperatorinourvaluechain.Examplesincludeemissionsgeneratedbysuppliersmanufacturingrawmaterialsusedinourfactories,fuelconsumedbythird-partylogisticscompaniesshippingourproducttothefieldandelectricityconsumedbycustomersusingourproducts.WearecurrentlyexecutingaprojecttofurtherassessourScope3emissions.OurultimateintentionistosettargetsthataddressGHGemissionsacrossourentirevaluechain,whichexpanduponourexistingScope1andScope2targetandareconsideredindependentlytobesciencebased.Ourinitialeffortsincludedthecreationofacross-functionalteamtooutlineprojectobjectivesandprovideguidanceonthekeyupstreamanddownstreamScope3categoriesthataremostmaterialtoOtis.Thatengagementinvolvedtheidentificationofexistingbusinessdata(i.e.,businessspenddataandproductiontotals)tobeusedtoconductanestimateofourScope3emissionsusingacalculatorrecommendedbyCDPforourannualclimatechangedisclosure.Throughthisinitialexerciseweidentifiedtheenduseofourproductsbyourcustomers(Scope3Category11)andourpurchasedgoodsandservices(Scope3Category1)asthepriorityemissionsrequiringadditionalquantification.Withtheinitialscreeningcomplete,weengagedaleadingSMEtocreateaprocessforcalculatingourpriorityemissionsmoreprecisely,goingbeyondtheuseofbasicspenddata.Theprocessallowedustosupplementthatdatawithmoremass-baseddataandmatchthedifferentspendcategoriestospecificproducttypes.Thispermitsustocalculateemission-intensityvaluesformaterialsrequiringmoreenergytoproduce.Withrefinedcalculationsinplace,wehaveconfirmedthepriorityemissioncategoriesthataremostmaterialtoourbusiness,includinganinitialassessmentofreductionopportunitiesinthoseareas.Thefinalphaseoftheprojectwillincludeformalcreationofastrategyandroadmaptoreducecarbonemissionsfromtheseprioritycategories.Itwillstartwithmodelingtoprojectourtotalemissionslongterm,usingpredeterminedclimatescenariosandprojectedbusinessgrowthdata.Theseprojectionswillsupporttheidentificationofopportunitiestodrivereductionsinsupportofmid-termandpossiblylong-termScope3reductiontargets.Oncethisprocessiscomplete,ourintentionistosubmittoSBTiin2023.Scope3emissionsESGATOTISHEALTH&SAFETYPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXENVIRONMENT&IMPACT2022ESGREPORT28ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIESPeople&CommunitiesWedeemitmissioncriticaltocultivateasafe,diverse,inclusiveandinnovativeworkplaceforourpeopletoconnectandthrive.Ourfundamentalstrengthstemsfromthecontributionsmadebythemultiplecultures,skillsetsandexperiencesofourteammembers.In2022,wecontinuedtobuildonourdiversity,equityandinclusion(DE&I)strategies.TheyaregroundedinOurCommitmenttoChangeframeworkandfosteranenvironmentwhereinnovationandcontinuousimprovementarerewarded,andallOtiscolleaguesfeelsafe,welcomedandheard.Westrivetoprovideequalopportunitiesforeveryonetogrowandcontribute.Otisisapproximately69,000colleaguesstrong,includingapproximately41,000fieldprofessionals–allcommittedtodeliveringexcellence.~69,000colleagues~41,000fieldprofessionals2022ESGREPORT29In2022,weincreasedourfemaleexecutiverepresentationto39.2%,a3pointincreasesince2021,alignedwithourgoaltoclosetheexecutivegendergapby2030andconsistentwithourpledgetotheParadigmforParitycoalition.WealsotookthecriticalactionoflinkingthisgoaltoourexecutiveSTIcompensationprogram.TheaddedperformancemultipliercanadjusttheSTIawardsupordown5%basedonourprogresstowardachievingthisgoal.Itisintendedtodriveimmediatenear-termaction.Belowaresomeofthekeyinitiativesweledin2022todriveresultsforamorediverseworkforce.Foradditionalinitiativesonworkforcediversity,seepage35.ItisimperativethatOtisleadershipreflectsthecolleagues,communitiesandcustomersweserve.Goal:Achievegenderparityinourexecutiveranksby2030DE&IADVISORYGROUPTheDE&IAdvisoryGroup,establishedinNovember2021anddiscussedinfurtherdetailonpage41,hasbeeninstrumentalinfurtheringourDE&Ipriorities.In2022,theDE&IAdvisoryGroupimprovedrepresentationthroughbalancedslatesandpipelinegoals;confirmedglobalbaselinesofunderrepresentedtalentbymarket;reinforcedmindsetandheldleadersaccountabletoincreaseinclusionandbelongingacrosstheorganization;andacceleratedsponsorship,mentorshipandallyshipthroughfocuseddevelopmentprograms.EMPLOYEERESOURCEGROUPSWecontinuedtostrengthenourEmployeeResourceGroups(ERGs)in2022byappointing10newexecutivesponsors,expandingourERGs(e.g.,OWNMiddleEastsupportingwomen’sempowerment,ThriveLAAsupportinginclusionandaccessibility),andofferingnewprogrammingaroundwell-beingandaninclusiveculturetoincreasediversetalentglobally.ThroughourERGs,wedevelopourcolleagues’careers,fosteraninclusiveculture,andinvestinthecommunitieswhereweliveandworktomakeadifference.ForadditionalinformationregardingourERGs,seepage51.GLOBALFEMALEDEVELOPMENTWecontinuetosupportglobalfemaledevelopmentthroughexternalprogramming.In2022,participationinourSignatureLeadersprogramincreasedbynearly500%.Weareseeingtheimpactofourdevelopmenteffortsthroughtalentmovement,asapproximately26%ofparticipantsinfemale-focusedprogramsexperiencedalateralmoveorpromotionin2022.WealsopilotedasponsorshipinitiativethroughoneofourstrategicpartnersandhaveformallylaunchedanOtissponsorshipprogramforselectleaderscommencedinFebruary2023.2022ESGREPORT29ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT30In2022,72%ofourOtiscolleaguesagreedwiththestatement“Ourteamhasaclimateinwhichdiverseperspectivesarevalued,”representinga1pointimprovementfromourbaselineof71%.ThisprogressresultsfromthemanyinitiativeswehaveundertakenoverthepastyeartofurtherourDE&Istrategy.Aswecontinueeffortstowardreachingthe4percentagepointincreaseby2025,weareimplementingadditionalinitiativesforamoreinclusiveworkforcewithdiverseperspectives.Welaunchedaformalallyshipinitiative,WeAreManyVoices,aspartofourglobalinclusionmonthinOctober.Throughoutthemonth,colleaguesparticipatedineventsandconversationsaboutpurpose,courage,mentalhealthandwell-being,generationalawareness,andothertopicsspecifictofosteringaninclusiveenvironment.WeimplementedagenderidentitypolicyintheAmericaswithaccompanyingtrainingformanagers.WealsorevisedourEEOC(U.S.EqualEmploymentOpportunityCommission)andADA(TheAmericanswithDisabilitiesActof1990)policytoimproveitsvisibilityforleadersandcolleagues.Welaunchedanoptionalself-IDcampaign,FreetoBeMe,in25countries,whichallowsOtiscolleaguestovoluntarilyself-reporttheirdemographicdata(e.g.,raceandethnicity,disabilitystatus,genderidentity,sexualorientationand/ormilitaryservice,asapplicablepercountrylaws).Thisprogramwillallowustoestablishabroadersetofbaselines,gainmorerobustequityandinclusioninsights,andfurtherdevelopmeaningfulprogramsthathelptodriveourDE&Istrategy.In2023,weexpecttocontinueexpandingthisprogram,addingatleast15countries.OurChair,CEOandPresident,JudyMarks,joinedmorethan140leadersofothercompaniesinsigningtheCEOLetteronDisabilityInclusionwithDisability:IN,anorganizationwiththegoalofcreatinganinclusiveenvironmentforall.WehavebeenacorporatememberofDisability:INsincebecomingindependentin2020.Intheletter,CEOsurgeoneanothertoevaluatetheircorporateprogressbytakinganannualDisabilityEqualityIndexbenchmarkingsurveyandsharingimportantinformationondisabilityinclusionanditsimpactonbusinessperformance.ThroughtheOtisThriveERG,wehavecommittedtofurtheringourdisabilityinclusionefforts.Someoftheseactionsinclude:•Educatingcolleaguesaboutdisabilityaccommodations•Implementingalearningprogramandprocessimprovements•Increasingdisabilityrepresentation•Improvingaccessibilityofourinternalcommunications,toolsandspacesWerecentlycreatedandfilledanewposition,GlobalDisabilityAccommodations&AccessibilityLead,tohelpfurthertheseinitiatives.Goal:Increasecolleaguefavorabilityfortheinclusiveculturecategoryinthecompany’sengagementsurveyby4percentagepointsby2025CelebratingthePowerofSheDevelopingfemaletalentandpromotingdiversityandinclusionareprioritiesthroughoutourorganization.InChina,accomplishmentsoffemalecolleaguesarecelebratedthroughthePowerofSheinitiative.Inthisseriesofshortvideos,femaleleadersacrossdiversefunctionssharetheirinspirationalstoriesofcareergrowthandachievementatOtis.Wehavesupplementedthisinitiativewithdevelopmentprogramsandworkshopsfocusedonfemaleadvancement.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT31Goal:Impact15,000studentsgloballythroughSTEM-focusedprogrammingtoimprovelivelihoodsandhelpbuildtheworkforceoftomorrowby2030In2022,approximately1,600studentsbenefitedfromOtis-sponsoredSTEMand/orvocationaleducationandtrainingprogramswithmorethan2,500studentsimpactedcumulativelysincewesetourgoalin2021.Oursignatureprogram,MadetoMoveCommunities,isahigh-touchmentorshipprogramdeliveringqualitySTEMlearningexperiencestohighschoolandcollegestudents.Eachyearstudentsaroundtheworldtakeontheroleofproductengineersduringasix-toeight-weekperiod,identifyinganddevelopingsolutionstoeliminatemobilitybarriersontopicsrelatedtosustainability,inclusivityandeducation.Otiscolleaguesmentorthemthroughouttheprocess.Weareproudofthesuccessofthisprogram,asevidencedbythegrowthofitsscopeandpresencesinceitsinceptionin2020.BuildingonthesuccessofourMadetoMoveCommunitiesprogram,weimplementedadditionalinitiativesandcontinuedtostrengthenourrelationshipswithSTEM-drivenorganizations:•Teaching:ThroughtheOtisSTEMKitprogram,OtiscolleaguesintheU.S.provideyouthages8-12withmaterialsneededforatwo-tothree-hourSTEMclassandengagewiththeminhands-onSTEMactivitiesusingthesekits.Additionally,OtiscolleaguesinHongKong,SoutheastAsiaandIndiahavealsoengagedinSTEMprogramsforthisagegroup.•Coaching:Otisvolunteerscoachedandledeightrobotics-focusedForInspirationandRecognitionofScienceandTechnology(FIRST®)teamsacrosstheU.S.andCanadaincompetitions,suchasFIRST®LEGO®League,FIRST®TechChallenge,andtheFIRST®RoboticsCompetition.•Scholarships:Toprovidescholarshipstounderservedandunderrepresentedstudents,wecontinuedcollaboratingwiththeChinaWomen’sDevelopmentFoundation’sMulanDevelopmentProgram,TheAsiaFoundation,theCambodiaAcademyofDigitalTechnology,Singapore’sServingPeoplewithDisabilityandselectUrbanLeaguechaptersintheU.S.,amongothers.•ProfessionalTraining:WeprovidedtrainingthroughvocationalandapprenticeshipprogramstoServicemechanicsonthesafeinstallationandservicingofelevatorequipmentwithlive,virtualandon-the-jobmodules.14studentteamsacrossninecountriesandterritoriesfocusedonhelpingcommunitiesrespondtotheCOVID-19pandemic.2020-21CHALLENGE20studentteamsacross14countriesandterritoriescreatedSTEM-basedsolutionstohelpolderpopulationsaddressmobilitychallenges.2021-22CHALLENGE32studentteamsacross15countriesandterritoriesarechallengedtodevelopnewmobilitysolutionsneededtoaddresstheimpactsofclimatechange.2022-23CHALLENGE(currentlyunderway)ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT32Goal:Direct50%oftotalglobalgivingtoSTEMprogramsby2025In2022,wecontinuedtobetteralignanddirectourcharitablegiving–globally,regionallyandlocally–towardourfocusareasofSTEMlearningandvibrantcommunities,resultingin51%ofcharitablegivingtoSTEMprograms,up11%from2021.Weareprioritizingthefollowingactions:322022ESGREPORT321ExtendingsuccessfulSTEMcollaborationsintomorecountriesandregionstoofferscholarshipsandotheropportunitiestounderservedandunderrepresentedpopulations2InvestinginmorehighschoolanduniversitySTEMinitiativestoimpactadditionalstudentsthroughthegrowthofourMadetoMoveCommunitiesprogramandgrants3Makingmorestrategicgrantstoformcloser,moreeffectivepartnershipstoadvanceoursocialimpactandDE&IobjectivesandenableustoaffectpositivechangewithcauseswecaremostdeeplyaboutESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT33In2022,wetookanimportantsteptowardour2030goal,withcolleaguesacrossallourOtisregionsdedicatingmorethan43,000hourstotaltovolunteerefforts.In2022,wefurtherempoweredvolunteeringthroughthefollowingactions:In2023,wewillofferadditionalprogramsandresourcestomakevolunteerismevenmoreaccessibletocolleaguesglobally:•Planandlauncha3in’23campaign,challengingcolleaguesgloballytovolunteeratotalofatleastthreehoursofservice,anadditionalhouroverlastyear’sprogram•Identifyandoffermorevirtualvolunteerprojectstoexpandparticipation,regardlessofthecolleagues’geographiclocation•Developandextendcollaborationswithnewandexistingcommunity-basedorganizationsinneedofvolunteerstosuccessfullycarryoutprogrammingGoal:Dedicate500,000cumulativecolleaguevolunteerhoursinsupportofvibrantcommunities,STEMeducationandsocialequityeffortsgloballyby2030Asakeycomponentofoursocialimpactstrategy,wecallonourcolleaguestodedicatetimetobenefitlocalcausesthatmattermosttothemandtheircommunities.1Developedandlaunchedacentralized,globalapplicationforcolleaguestoself-reporttheirvolunteerhours.Thisenablesustoquantifyourcollectiveimpactintermsofhoursvolunteered.Launchedthe2in’22campaignduringthefourthquarter,challengingallOtiscolleaguestorecordatleasttwovolunteerhoursin2022tohelpourcommunitiesthrive.ThecampaignincludedafriendlycompetitionamongOtisteams,committingtofundSTEMgrantstotheOtisregionandglobalfunctionwiththehighestlevelsofparticipation.ContinuedsupportingourlongstandingrelationshipswithregionallybasedcommunityorganizationssuchastheSamarthanamTrustandtheSpecialOlympics.23ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT34WecareaboutOtiscolleagues’well-beingand,accordingly,weofferfairemploymentconditions.Wefollowlocallaborlawsthatgenerallyaddressthelengthoftheworkdayandtheworkweek,minimumwages,insurancecoverageofwork-relatedaccidents,severancepayandotheremploymentprovisions.Weconductglobalpayanalysestoensurethatournonrepresentedcolleaguesarepaidaccordingtotheirabilities,responsibilities,qualifications,performanceandexperience.Inaddition,weofferawiderangeofbenefitsthatinclude,dependingonthecountryandOtiscolleagues’eligibility:•Medical,dentalandvisioncoverage•Short-termandlong-termdisabilitycoverage•Lifeinsuranceandaccidentaldeathanddismembermentcoverage•Retirementprograms,includingdefinedbenefitpensionplans•EmployeeAssistanceProgramandwellnessprograms•Paidsick,bereavement,vacation,familyandparentalleaves•CertainvoluntarybenefitsOtisalsobecameafoundingmemberofWorkWellLeaders,anAsiaPacific-basedorganizationthatpromoteshealthyandthrivingworkplaces,withourPresident,AsiaPacific,StéphanedeMontlivault,holdingthepositionofChairoftheNominationsCommittee.WesupportOtiscolleagues’rightsandarecommittedtoadherencetolocallawsregardingfreedomofassociationandcollectivebargaining.Wealsohaverelationshipswithtradeunionsandworkers’councilsintheregionswhereweoperate.Approximately64%ofourworkforceintheU.S.iscoveredbycollectivebargainingagreements.OutsidetheU.S.,ourcolleaguesarerepresentedbyworkers’councilsorstatutorylaborunionsasmaybecustomaryorrequiredinthosejurisdictions.Wealsofollowastrictharassment-freeworkplacepolicyandexpectthesamefromourbusinesspartners.Tofosteraninclusiveworkplace,weassignamandatoryonlinetrainingcourseonanti-harassmentandanti-discriminationtoallnewlyhiredsalariedcolleagues,requiringcompletionwithin30daysofjoiningOtis.Employmentpolicies,conditionsandlaborrelations2022ESGREPORT34ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT35TALENTHIRINGDiversityinthemechanictalentpoolisaparticularchallengeintheconstructiontrades.SystemicandlegacybarrierstohiringandretainingmechanicsofdiversebackgroundsmeanourfocusatOtisneedstobestrategic.Weofferandhelpensureequalopportunities,andweadvocateforamorediverseworkforcethrougheducation,networking,apprenticeshipandmentorship.Examplesofsomeoftheinitiativeswehaveundertakeninthepastyearare:•IntheU.S.,wecontinuedtocollaboratewithlocalaffiliatesoftheUrbanLeague,wherecolleaguesraisedawarenessforourindustryandprovidedcounseltoprospectiverecruitsfortheNationalElevatorIndustryEducationalProgram(NEIEP),ourindustry’sregisteredapprenticeshipprogram.•Incollaborationwiththeindustryapprenticeshipprogram,weledeffortsintheU.S.toestablishanewDirectorofDiversityposition.ThenewDirectorwillleadNEIEP’sDE&Iprograms,includingoutreachtounderservedcommunities,trainingforNEIEPinstructors,interviewersandapprentices,andthedevelopmentandimplementationofprocessesandinitiativesaimedatbuildingamorediverseandinclusiveworkforce.•WesupportedtheestablishmentofasubcommitteeontheefficacyofanApprenticeshipReadinessProgramintheU.S.toidentifyindividualsfromunderrepresentedcommunities,trainthemonthebasicskillsneededtosucceedandofferdirect-hireopportunitieswithasignatoryemployer.•InFrance,morethan60mechanicsofdiversebackgroundswerehiredin2022throughthePOEI(préparationopérationnelleàl’emploiindividuel),agovernment-fundedorganizationthatpartneredwithOtistotrainmechanicswithdiverseanddisadvantagedbackgrounds.•IntheAsiaPacificregion,webeganawomen-focusedmentoringprogram,engagingmentorsandwomenfieldservicementeesrepresentingtheterritoriesandcountrieswithwomenfieldcolleaguesinthatregion(i.e.,Japan,SouthKorea,Australasia,HMT(HongKong/Macau/Taiwan)andSoutheastAsia).Theprogramaimstosupportwomeninthefieldintheareasofskillsdevelopment,careerplanning,networkingandwork-lifebalance.AtOtiswearefocusedonattracting,developingandretainingtalent.Theseeffortsareimplementedthroughmanyinitiativesrangingfromhiringadiverseworkforcethatrepresentsthecommunitiesweservetoofferingvarioustrainings,coaching,sponsorshipandmentorshipprograms,aswellaspromotinganinclusiveanddiverseculturetoretaintalent.Talenthiring,developmentandretentionESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT36Talenthiring,developmentandretention(continued)TALENTDEVELOPMENTColleaguedevelopmentisakeypillaratOtis,andwearecontinuallyexpandingourdevelopmentprogramstoattractandretaintalent.Forexample,welaunchedanexternalcoachingprogramforaselectgroupoffemaletalentintheAsiaPacificregionwithstrongengagementandpositivefeedback.Wealsostrivetoempowerourcolleaguestoshareideas,developnewskillsandbelifelonglearners.OneofoursignatureprogramsisOtisUniversity,aglobalprogramthatbuildsleadershipandfunctionalcapabilitiesinSales,Field,EngineeringandMajorProjects.AnotherprogramisourEmployeeScholarProgram,anotablepointofpride,throughwhichOtissponsorscolleaguestopursuedegreesorcertificationprograms.Increasingdiversitywithinourworkforceiscritical.AswecontinueourDE&Ijourney,weremainfocusedonprovidingopportunitiesforallcolleaguesthroughouttheorganization,andpartneringwithseveralorganizationstodevelopandengageourtalent.AfewofthoseopportunitiesincludetheCareerCommunicationsGroup’sBlackEngineeroftheYearAwardandWomenofColorSTEMAward.Throughtheseorganizations,werecognized10individualsfortheiraccomplishmentsintechnologyrolesandinthecommunity.Participationwithinexternaldevelopmentprogramsdedicatedtopeopleofcolorhasremainedsteady,andwearebeginningtoseeresultingaccelerationintalentmovementasabout29%ofparticipantsachievedalateralmoveorpromotionbytheendof2022.TALENTRETENTIONTrackingourcolleagues’attritionrateprovidesusalensthroughwhichwecanassessthesuccessofourworkplaceinitiatives.Weareproudoftheprogressmadetolimitattrition,whichisadirectoutcomeofseveralinitiativesandprogramsimplementedbyOtisoverthepastfewyears,including:•Offeringskip-levelmeetingsforidentifiedtalenttoconnectwiththeleadershipteam•Sponsoringkeytalenttoparticipateinexternaldevelopmentprograms•Providingcareercoachingtocolleagueswithhigh-potentialandearly-watchtalent,especiallythoseinahigh-retention-riskcategoryTheglobalattritionrateatOtisremainsinthemid-singledigits,asithasbeenthepastfewyears.AlthoughwehaveseenanuptickinattritionsincetheCOVID-19depressedratesof2020,webelieveourcurrentretentionratereflectsoverallstrongOtiscolleaguesatisfaction,positivelyimpactedbyactionsdrivenfromourDE&Istrategy.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTGOVERNANCE&ACCOUNTABILITYAPPENDIXPEOPLE&COMMUNITIES2022ESGREPORT37ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITYWeareoperatinginanewworld–characterizedbyaconsistentstateofdisruptionandchange–yetourAbsolutesofSafety,EthicsandQualityremainparamounttoourbusinessinallconditions.Governance&Accountability2022ESGREPORT37Ourreputationispriceless.Otiscolleagues,customers,passengersandshareholderstrustusbecausetheyknowwedobusinesstherightway–theethical,lawfulandhonestway.Weexpectthateverythingwedoandmakerunsonaspiritofintegrity,andthatourOtiscolleaguesactethicallyatalltimes.AndwebelievethatallofusownQuality,bydeliveringexcellenceacrossourproduction,installation,andmaintenanceandrepairprocessesaswellassales,marketingandfinancialreporting.Tocreateaccountability,weupholdleadingstandardsforstronggovernance,ethicsandintegrity,andwefollowbestpracticesimplementedthroughstronginternalcontrols,consistenttrainingandcolleagueengagement.Webelievethatstronggovernanceleadstosuperiorbusinessoutcomes,andourBoardisconstantlyengagedonawiderangeofmattersspanningbusinessstrategyandESG-relatedtopics.Wehaveadoptedcompanypolicies,practicesandprocedurestoreflectandimplementthisbroadcommitment.TolearnmoreaboutcorporategovernanceatOtis,visittheOtiswebsitetoaccess:GovernanceDocuments,CommitteeChartersandSECFilings,includingour2022Form10-Kand2023ProxyStatement.2022ESGREPORT38In2022,wesurpassedourgoalofdirecting20%ofourspendtodiverseU.S.suppliers–oursecondyearinarowexceedingthegoal.Contributingtotheincreaseindiversesupplierspend,thisyearweincreasedthenumberofdiversesuppliersinourrosterby10%.Wedefinediversesuppliersasthosethatareatleast51%ownedbyanindividualorgroupthatisunderrepresented(minority-,women-,veteran-,LGBTQ+ordisability-owned),asmallbusinessand/oronethatisoperatinginaneconomicallydisadvantagedlocationbasedonU.S.SmallBusinessAdministrationdefinitions.Wearealsostrengtheningourrelationshipswithourexistingkeystrategicdiversesuppliersbyexpandingourscopeofservicesandproductswiththem.WeareamemberoforganizationssuchastheNationalMinoritySupplierDevelopmentCouncilandtheWomen’sBusinessEnterpriseNationalCouncilinsupportofadvancinganddevelopingdiversebusinesses.Weworktoprioritizediversitywithinourorganizationtoensurethatourcolleaguesarerepresentativeofthecustomersandcommunitiesweserve–andweseektodobusinesswithsupplierswhosharethiscommitment.Goal:Awardatleast20%ofU.S.supplierspendannuallytodiversesuppliersRaisingawarenessthroughinternalcommunicationssessionsAddingmorediversesupplierstooursupplierdatabaseIncludingqualifieddiversesuppliersinourbidprocessesWestrivetocontinuethistrendin2023andbeyondandwilladvancethisspendgoalby:ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT39OurdiverseBoardiscomposedofexperiencedglobalcorporateexecutiveswithbroadanddeepmulti-industrialandconsumerindustryknowledge,andfinancialexpertise.ThesespecificskillsandattributesreflectthecriteriathattheBoardhasidentifiedasmostrelevantanddesirabletosupportandguideOtisinexcellingnowandintothefuture.BoarddiversityisactivelyconsideredbytheNominationsandGovernanceCommitteeduringitsrecruitmentandnominationprocess,andourcurrentBoardcompositionreflectssuchefforts.Sixoutof10(60%)Boardmembersarediverse:40%arewomen,40%areethnically/raciallydiverseand40%ofBoardleadershiprolesareheldbywomen,includingtheBoardChair.TheNominationsandGovernanceCommitteeitselfis60%diverse,withthreeoffivemembers–includingtheCommitteeChair–beingwomen,ethnically/raciallydiverseorboth.LikeourOtiscolleagues,ourBoardisguidedbyTheOtisAbsolutesandsetsthetoneforgoodgovernancepractices.CorporateandESGgovernanceOurgovernancestructurereflectsprocessesfromacrossindustriesthatwebelieveprovidethebasisforeffectiveBoardoversight.Throughourcorporategovernancestructure,weexemplifyindustry-leadinggovernancepractices:•Annualelectionofdirectors•RobustindependentLeadDirectorrole•Proxyaccess•Shareholderscancallspecialmeeting(15%threshold)andactbywrittenconsent•Majorityvotingfordirectors•Nosupermajorityvotingprovisions•Nostockholderrightsplanorpoisonpillplan60%Boardmembersarediverse40%Boardmembersarewomen40%Boardmembersareethnically/raciallydiverseESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITYLeadershiprolesaredefinedastheChairoftheBoard,LeadDirectorandthechairsofeachcommittee.2022ESGREPORT40Underscoringtheimportanceofgoodcorporatecitizenship,ourBoardanditscommitteesengageinextensivereviewandoversightofESG-relatedtopics.TheNominationsandGovernanceCommitteehasprimaryoversightovermostESGtopics,includingtheOtisESGstrategyandgovernancemodel,healthandsafety,sustainabilityandclimate-relatedrisksandopportunities,DE&I,corporatesocialresponsibility,andcharitablegiving.TheCommitteeensurestheBoardandcommitteesincludememberswithrequisiteESGexpertise,includingthroughpriorESGexperienceandcontinuingeducation.ItalsopursuesESGoversightthroughtheintegrationofgovernancebestpracticesintotheboardroomandshareholderengagement.Additionally,theNominationsandGovernanceCommitteereceivesreportsfrommembersofthecompany’sESGCouncilcomposedofseniorleadersrepresentingmultiplefunctions:Communications,Engineering,Environment,Health&Safety,HumanResources,InvestorRelations,Legal,Quality&ContinuousImprovement,andSupplyChainandSustainability.AninternalESGWorkingGroup,composedofSMEs,assiststheESGCouncilindevelopingandeffectuatingthecompany’sESGstrategy.Boththecouncilandworkinggroupmeetfrequently,withtheESGCouncilreportingregularlytotheCEO.TheCompensationCommitteehasauthorityovertheincorporationofESGgoalsintoourexecutiveSTIprogram,payequity,majorbenefitchangesandworkforcetalent.ThefullBoardretainsoversightofbusinessobjectivesandstrategies,includingthoserelatedtoESGtopics,significantrisksandpublicpolicyissues(suchastheongoingconflictbetweenRussiaandUkraine),keytalentsuccessionplanning,cultureandengagement,andinvestorrelations.CorporateandESGgovernance(continued)NOMINATIONSANDGOVERNANCECOMMITTEECEOESGCOUNCILESGWORKINGGROUPESGGovernanceModel•Integrated,cross-functionalinitiative•ESGstrategyisalignedwithourculture,values,andbusinessstrategiesandobjectives•Objectivesestablishedinkeyareas,withcontinueddiscussionaroundlonger-termapproach•TheESGCouncilandESGWorkingGroupmeetfrequently,ademonstrationofourcommitmenttodevelopingandmaintainingasuccessfulESGprogramAreasofoversightinclude,butarenotlimitedto:•Communitygiving,volunteerismandcommunityengagement•Corporategovernance•DE&I•Ethicsandcompliance•Healthandsafety•Investorrelations•Supplychain•Sustainabilityandclimate-relatedrisksandopportunitiesESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT41DE&IaccountabilityExecutivecompensationWearecommittedtoexecutivecompensationpracticesthatdriveperformance,mitigateriskandaligntheinterestsofourexecutiveswiththoseofourshareholders.Ourexecutivecompensationprogramisdesignedtoensurethatasignificantportionofpayisvariableandbasedonamixofcompanyandindividualperformance.WealsoalignourexecutiveincentivecompensationwithourESGstrategy.In2022,ourexecutiveSTIcompensationprogramwasexpandedtoincludetwoESGperformancemultipliers:progresstowardachievinggenderparityacrossourexecutiveleadershippopulationby2030andreducingScope1andScope2GHGemissionsby50%by2030.EachperformancemultipliercanincreaseordecreaseSTIpayoutsbyupto5%,foratotaladjustmentofupto10%.ToadvanceaccountabilityandtransparencyforourDE&Iprogress,inNovember2021,OtisestablishedtheDE&IAdvisoryGroupcomposedoffourpermanentmembers(ourChair,ChiefExecutiveOfficerandPresident;ExecutiveVicePresident&ChiefPeopleOfficer;VicePresident&ChiefCommunicationsOfficer;andDirector,DE&I),threetofourmemberswhorotateannually,representingcross-functionalandcross-regionalareasandoneBoardmember.ThegroupmeetsthreetimesperyearandisassistedbyDE&Icouncilsattheregionalandlocallevel.TheDE&IAdvisoryGroupisresponsiblefor:•SettingOtisDE&Istrategyandpriorities•ChallengingOtisandourleaderstoachievemore•Advocatingforstrategicinitiativesandmonitoringtheirprogress•Drivingaccountabilityforoutcomesacrossregionsandfunctions•Bringinginoutsideperspectivesandreviewingregional/functionalprogress•SharingbestpracticesESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT42Cybersecurity,dataprivacyandintellectualproperty2022ESGREPORT42CYBERSECURITYWearecommittedtodevelopingproductsandservicesthatarecybersecure,andwearediligentinmonitoringthethreatlandscapetoprotectagainstcyberattacks.Tothatend,wehaveanextensivecybersecuritygovernancestructureinplace.CybersecurityrisksareoverseenbytheAuditCommittee,andourCybersecurityProgramisdirectedbybothourChiefDigitalOfficerandChiefInformationSecurityOfficer.OurCyberGovernanceCouncilandSteeringCommitteearemadeupofseniormanagementatourcorporateheadquartersandregionaloffices,aswellasourCEO,toensurevisibilityandalignmentwiththebusiness.WemaintainarobustCybersecurityIncidentResponsePlan,haveestablishedaglobalSecurityOperationsCentertosupportenterprisevisibilitytocyberincidentsinrealtimeandperiodicallyconducttable-topexercisestotesttheplan.Wehavecybersecurityinsuranceandregularlyreviewourpolicyandlevelsofcoveragebasedoncurrentrisks.Allsalariedcolleaguesincybersecurity-relatedrolesarerequiredtohavebaselineandoperationalcertifications.Weconductseveralcyber-relatedinternalaudits,aswellasamonthlythird-partyscanofournetwork.Wealsoencourageourcolleagues,contractorsandcustomerstoreportanysecurityvulnerabilitiesuncoveredwhileworkingwithus,andweinvestigateanycrediblereports.DATAPRIVACYAsaglobalcompany,weprocessandsharepersonallyidentifiableinformationfromthemanycountriesandterritoriesinwhichwedobusiness,takingtheutmostcareinthewaywehandleandprotectpersonaldata.Wehaveaglobalprivacyorganization,supportedbythehighestlevelsofleadership.Weevaluateourprocessingactivitiestoensurethatweapplyprivacyprinciples,includingdataminimizationandprivacybydesign.Werelyonrecognizedtransfermechanisms,suchasStandardContractualClausesandBindingCorporateRules(BCRs).OtisobtainedregulatoryapprovalintheEuropeanUnionforBCRsinNovember2021–acertificationprovidedtofewerthan200companiesworldwide–representingformalvalidationofourprogrambysomeofthestrictestprivacyregulatorsintheworld.Wefollowthesamestrictstandardsforprivacycompliancethroughoutourglobaloperations,helpingustocomplywithlocallegalobligationsmoreeasilyandadaptquicklywhennewlawscomeintoeffectaroundtheworld.INTELLECTUALPROPERTYInnovationisafundamentalcharacteristicofourhistoryandiscentraltoourstrategy,aswevalueinvestmentinresearchanddevelopment(R&D)andinourstrategicinitiatives.Wehaveapproximately1,200engineersglobally,withincreasingfocusondigitalinitiatives,software,designoftheuserinterfaceandtheuserexperience.AstheOtisbrandisrecognizedaroundtheworldforqualityproductsandservices,weprotectourinvestmentintechnologyandourbrandthroughacombinationofpatents,trademarks,tradesecrets,confidentialitypoliciesandactivemonitoringprograms.Wealsoprovideregulartrainingtoourcolleaguesontheimportanceofprotectingourtradesecrets.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT43QualityisanOtisAbsoluteandenablessafeproductsandinstallationswhileinstillingtrustfromourcustomersandpassengers.Weallhavearoletoplayinprovidingoutstandingquality,fromengineering,manufacturing,installationandservicetoselling,marketingandreportingourfinancials.Thisrequireseveryonetoworktogetherwiththesamecommitmentandfocusacrosstheentireorganization.Wetakefullresponsibilityfortheworkmanshipandserviceweprovide,actpassionatelytoeliminatequalityissuesattheirsource,respondquicklytoresolveanyproblemsandsatisfyourcustomers–whileneversacrificingqualityunderanycircumstance.Toenableustodoso,wehaveimplementedastrategytailoredtoeverylevelofourorganization,lookingatOtisinaholisticwaytodeterminehowtooperatemoreeffectively,efficientlyandsustainably.Wefocusonfourspecificareas:Internalquality:Eachmanufacturingsiteorcorefunctionalgrouphasstrongkeyperformanceindicators(KPIs)orqualitymeasurementsystemstotrackperformanceagainstinternaltargets.WestrivetoidentifyandresolveissuesbeforeourcustomersexperiencethemtodrivecustomerloyaltyandapositiveperceptionofOtis.Fieldservice/aftermarketquality:Wemeasurefieldturnbacksandcallbacks,lookatadditionalmaterialsortimeneededforaparticularinstallation,anddeterminefieldserviceconcernsandqualityresolutions,suchasadditionaltraining,newsystemmanagementoradifferentexecution.QualityManagementSystem:OurqualitydashboardprovidesacoresetofKPIsfocusedonprocessandproductquality,allowingteamstomeasureandreactaroundthoseKPIsandtodeterminetherequiredinfrastructure.OtisPerformanceExcellence(OPXL):Ourcontinuousimprovementteamleadsinitiativestobuildastrongcultureinourmanufacturingandbusinessprocessgroupsthatengageandempowereachcolleaguetoleadwithinnovation,everydayproblemsolvinganddeliveraworld-classexperienceforourcustomers.Withrespecttooursuppliers,wehavequalityprocessesandcontrolsembeddedinourSupplierCodeofConduct,asexplainedinmoredetailonpage44.QualityHigh-qualityserviceMobilizinginthefaceofnaturaldisasterInthewakeofHurricaneIaninlateSeptember2022,weheardstoriesofamazingteamworkthroughoutFloridawhen,afterensuringthatourcolleaguesweresafeandaccountedfor,ourteamsquicklyjumpedintoactiontohelplocalcustomers.Twenty-fourhoursafterthestorm,30membersoftheOtisteamhadsurveyedandassesseddamageonunitsinthearea,andourServiceCenterandthesupplychainteamidentifiedcriticalcomponentstobeshippedinbulktobringourcustomersitesbacktonormaloperation.Within10days,wehadperformedover500servicecallsandcommunicatedwithmorethan1,000customers.Oneexampleofthismobilizationinvolvedalocalhospital,whichwasmanagingcriticallife-savingefforts,whiledealingwithpoweroutagesandotherdamagefromthestorm.Ataround4:30p.m.,wereceivedacallfromthehospitalalertingustoamajorproblemwiththeonlyelevatorprovidingaccesstothehelipad.AnOtismechanicpromptlydiagnosedtheissueandinformedtheteamthattheelevatorrequiredanewdrivetobeoperational.TheRegionalFieldOperationsManagementTeamlocatedthedriverequiredfortherepairand,withadditionalhelpfromSouthwestFloridacolleagueswhodroveforthreehourstodeliverthepartstothejobsite,theelevatorwasfixedby11p.m.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT44Suppliersareacriticalpartofourbusinessand,assuch,arerequiredtoabidebyourSupplierCodeofConduct.Availablein28languagesonotis.com,theCodeholdsoursuppliersaccountabletothesamestandardsweestablishforourselves,startingwithourAbsolutesofSafety,EthicsandQuality.SpecifictoSafety,werequireoursuppliersto:•Ensureasafeandhealthyworkenvironmentforsuppliers’employeesandvisitorstotheirsites•ComplywithallapplicableEH&Srules•ProvideproductsandserviceswithsafetyasakeyguidingprincipleSpecifictoEthics,werequireoursuppliersto:•Respectallhumanrights(includingrulesprohibitingchildlabor)andfairlaborpractices•Respectanti-corruption(includinganti-bribery),faircompetitionandantitrustrules•Protectinformationandrespectintellectualpropertyandotherrights•MaintainaccuraterecordsForexample,tokeepcompliancetopofmind,wesendoursuppliersanannualletterremindingthemoftheobligationsestablishedinourSupplierCodeofConduct,includingourpolicyonbusinessgifts.SpecifictoQuality,werequireoursuppliersto:•Havequalityassuranceprocessestodetect,notifyOtisandcorrectdefectstoensuredeliveryofproductsandservicesthatmeetallcontractual,legalandregulatoryrequirements•Properlycompleteallinspectionandtestingrequirementsperformedbyappropriatelyauthorizedandqualifiedindividuals•CompleterequiredcertificationsaccuratelyPerourOtisAbsolutesandtheSupplierCodeofConduct,allOtiscolleaguesandsuppliersarerequiredtoreportactualorsuspectedviolationsofapplicablelaws,regulationsorpolicy,aswellasTheOtisAbsolutesandourSupplierCodeofConduct,usinganyofthereportingchannelsavailableonotis.comanddescribedonpage47.Disciplineand/orcorrectiveactionsaretakenasneeded.Wealsoconducton-siteauditsofcertainsuppliersandexpectourbusinesspartnerstocooperateincomprehensiveandfairinvestigations,withparticipationoftheirownsuppliers,asnecessary.Theyknowweexpectthemtocorrectanyidentifiednon-conformance,withpotentialterminationofourbusinesscontractforlackofcompliance.SupplierCodeofConductESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITYWerequireoursuppliersto:•ProvidetrainingtotheiremployeesandconductreasonableduediligencetoensurecompliancewiththeSupplierCodeofConduct•Ensuretimelyreportingofbothactualandsuspectedviolations•Promoteanenvironmentwherelegalandethicalissuescanberaisedwithoutfearofretaliation,includingmakingreportingchannelsavailabletocolleaguesandbusinesspartners2022ESGREPORT45WearecommittedtoprotectinghumanrightsandtoreducingtheriskofhumantraffickingatOtisandinourglobalsupplychain,andwedemandthesameofoursuppliers.WehaveexpressedouruncompromisingcommitmenttohumanrightsinastatementthatappliestobothourOtiscolleaguesandsuppliers,andwehaveadoptedananti-humantraffickingpolicyandprogramdesignedtodetect,mitigateanddeterhumantraffickingandforcedlaborinoursupplychain.Theprogramincludesriskidentification,assessment,mitigationandduediligenceactivities.WerequireoursupplierstorespectallhumanrightsandfairlaborpracticesandtocomplywiththeprinciplesoftheSupplierCodeofConductandapplicablelaws–forexample,lawsprohibitinghumantraffickingandchildlabor,includinginternationalstandardsgoverningtheWorstFormsofChildLabor.In2022,wecompletedseveralactions,whichincludedsubmittingourUnitedKingdomandAustraliaModernSlaveryStatementstotheapplicableregulatoryagencies,continuingtheduediligenceprocessofoursuppliersthroughthemeansofsurveysviaanenhancedrisk-basedapproach,andactivelyleveragingourmembershipintheResponsibleLaborInitiative(RLI).Toadvanceourprogram,weexpandedourtrainingfromourprocurementdepartmenttoconductsalariedstafftraining.Lookingforward,wewillcontinuetomonitortheemergingregulatorylandscapetoensurethatOtisiswellpositionedtodetect,mitigateanddeterhumantrafficking.Humanrightsandanti-humantraffickinginthesupplychainOurUncompromisingCommitmenttoHumanRightsatOtisAnti-HumanTraffickingPolicyGoverningtheOtisSupplyChainAHTPolicyandUKandAustraliaModernSlaveryStatementsESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT46Otisiscommittedtocontributingtotheeliminationofhumanrightsviolationsassociatedwithconflictmineralsand,assuch,hasadoptedaConflictMineralsProgramdevelopedtocomplywithDodd-FrankActspecifications.WealsoadoptedtheResponsibleMineralsInitiative(RMI)recommendedapproachtodeterminetheReasonableCountryofOrigin(RCOI)throughChainofCustodybyfocusingonsmelters.RMIhasaprogramcalledtheResponsibleMineralsAssuranceProcess(RMAP),whichvalidatesthatthesmelterfacilitieshaveduediligenceproceduresaroundconflictmineralsandthattheyaremakingtheirbesteffortstosourcefromcertifiedmines.Inaddition,wefileanannualConflictMineralsreportwiththeU.S.SecuritiesandExchangeCommission(SEC),whichdetailsourduediligenceeffortstoensurethattheycomplywithourpolicyandaresourcingmineralsresponsibly.ForFiscalYear2021,Otisconductedareasonablecountryoforigininquirybysendingsurveysto378suppliersestimatedtorepresentover$2.5billioninspendduring2021(over70%ofourdirectproductspend).Uponsuchadditionaldiligence,wetookappropriateactionwhendeterminedtobeneeded.AdescriptionofthisdetailedprocessisprovidedinourConflictMineralsDisclosureReportfiledinMay2022.TheseresultsmeettheintentoftheDodd-FrankActandareconsistentwithpreviousyears’SECfilings.ForFiscalYear2022,wearefollowingthesameapproachfortheduediligenceprocess,andweexpecttosubmittheSECfilingsinMay2023.ConflictmineralsinthesupplychainThroughourConflictMineralsProgram,ourcommitmentsareto:•Directsupplierstoourpositiononconflictminerals•Encourageoursupplierstojoinusinourcommitmentandtosourcefromconflict-freesmelters•Identifysuppliersatriskoftantalum,tin,tungstenandgold(3TG)sourcingviolationsandencouragecorrectiveactionsifneeded•Participateinindustrywideinitiatives,suchasRMI,whichprovidestandardandusefultoolsforconflictminerals378suppliersurveyrecipientsRepresentingover$2.5Binspendin2021Over70%ofourdirectproductspendESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT47DUEDILIGENCE/SCREENINGWeconductappropriateduediligenceandscreeningofthethirdpartieswithwhomwedobusiness,leveragingindependentlyprovideddatatohelpidentifyandresolvepotentialrisksthatmaybediscovered.SPEAKINGUPOurcolleaguesareempoweredtospeakupiftheysuspectwrongdoing.Theycanreportconcernsdirectlytoasupervisor,amanager,Legal,HumanResourcesoroneofourapproximately120Ethics&ComplianceOfficersandprofessionals,over90ofwhicharelocallybased.Forthosewishingtoreportindirectlyoranonymously,wehaveathird-party-managed24/7hotlineandanonlineweb-basedformwhichareavailableinternallyandexternallyonotis.comanddescribedfullyonourdedicatedsite.Theyaresummarizedbelow.INDEPENDENTANDTHOROUGHINVESTIGATIONSWeconductindependentandthoroughinvestigationsintoeveryspecificandcredibleallegationofaviolationoflaw,policyorourOtisAbsolutesinatimelymanner.Theoverarchingintentofourinvestigationprocessistounderstandthefacts,togaininsightsneededtoapplycorrectiveactions,suchasnewcontrols,awarenesstrainingoradditionalprocessstepsforprevention,andtoholdoneanotheraccountableformisconduct.SeniormanagementmonitorsinvestigationstoensurethatdisciplinaryactionsarefairlyandconsistentlyappliedacrossOtisandthatsignificantmattersarereviewedwiththeBoard.Weensurethatthosewhoraiseconcernsorreportwrongdoingscandosowithoutfearofretaliation.Otisvigorouslyinvestigatesanyallegationsofretaliation,andcolleaguesfoundtohaveengagedinretaliatoryconductaresubjecttodisciplineuptotermination.EthicsandintegrityByphone(hotline)Byonlinesubmittal(webline)ByemailBymail+1-833-833-3001intheUnitedStates,CanadaandPuertoRico,orfromoutsidetheseareaswithanAT&TaccesscodeVialinkonotis.comethics@otis.comOtisWorldHeadquarters1CarrierPlaceFarmington,CT06032USAAttn:GlobalEthics&ComplianceOfficeEthics,oneofourOtisAbsolutes,isembeddedinourculture,guidingustodotherightthingandhelpingtoensureourcolleaguesunderstandourexpectations.Doingbusinesstherightwayissimplywhoweare.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT48ETHICSTALK,COMPLIANCETRAININGMODULESANDETHICSEVENTSToraiseawarenessofpolicyrequirementsandcompliancerisks,wefocusonleadershipcommunications,onlineandin-persontraining,andinitiativessuchasOtisEthicsTalk.OurEthicsTalkprogram,withaparticipationrateofover99%,provideseverysupervisorwithworkshoptrainingmaterialstodiscussethics-basedscenariosandproblem-solvingtechniqueswiththeirteam.Thetrainingpresentationmaterialsaretailoredtotheteam’sworkorfunction.WecelebratedGlobalEthicsDayacrossOtis,witheachregionleadingactivitiesfocusedontheimportanceofspeakingupandtherolethatourAbsolutesplayatOtis.TomaintainourcultureofintegrityandtrustandtodrivecompliancewithourAbsolutesandcompanypolicies,weconductseveralEthics&Compliance-ledinternalauditseachyear,includingthosefocusedonanti-bribery,anti-corruptionandantitrust.Inaddition,weprovideonlinerisk-basedcompliancetrainingonaquarterlybasisontopicssuchashumanrights,modernslavery,anti-humantrafficking,antitrust,conflictsofinterest,protectingcompanydata,cybersecurity,dataprotection,anti-harassment,anti-discrimination,anti-corruptionandanti-bribery.Newsalariedcolleaguesareassignedasuiteofrequiredonlinecoursesgearedtokeycomplianceriskareasthataretobecompletedwithinthefirst30daysofemploymentatOtis.Inaddition,newsalariedcolleaguesareassignedacustom-builtcoursecalledLivingtheAbsolutes,TodayandEverydaythatintroducesourcompany’svaluesandcommitmentstoethicalpractices.Ourcompletionratefortargetedquarterlyonlineethicsandcompliancetrainingforsalariedcolleagueswas96%in2022.Andmorethan97%ofoursalariedcolleagueshaveattested,throughanannualcertificationin2022,thattheyhaveread,understandandarecommittedtocomplyingwithTheOtisAbsolutesandOtispolicies.Ethicsandintegrity(continued)ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITY2022ESGREPORT49AtOtis,wearecommittedtounderstandingstakeholderconcernsandworkingfortheglobalgoodofourcolleagues,customers,passengersandsociety.Weregularlyconsultwithourstakeholdersoneconomic,environmentalandsocialtopics.INVESTORSOurInvestorRelationsteamfieldsinquiriesfromOtisshareholdersonourESGobjectivesandperformance,andtheCorporateSecretaryhasorganizedannualshareholdercallsfocusedonESG,ledbyourCEOandourLeadDirector.Asanexample,infall2022JudyMarksandourLeadDirector,JohnWalker,invitedinvestorsrepresentingapproximately35%ofsharesoutstandingtoparticipateinESGrelatedconversations.TheirdiscussionsincludedourOtisculture,healthandsafetyprograms,ESGobjectivesandprogress.Theyalsoaddressedquestions,includingthoserelatedtoGHGemissionreportingandtargets,Scope3emissionreportingfeasibilityassessment,EnvironmentalProductDeclarations(EPDs),supplychain,executivecompensationstructureandpayequity.CUSTOMERSWeareinconstantcontactwithourcustomers,monitoringtheirchangingneedsandkeepingapulseonmarketpriorities.Wealsokeeptrackofourtopcustomers’keybusinessprioritiestosupporttheirprogress.WecapturethevoiceofourcustomersthroughourCustomerAdvisoryBoardandourannualcustomersurvey.TheCustomerAdvisoryBoardconsistsofnineclientsfromaroundtheglobeandmeetsquarterly.Weusethesemeetingstocollectfeedback,answerquestionsandshareimportantbusinessupdates.Wealsopartnerwithourcustomerstoenablethemtobemoresustainable,aswebecomemoresustainableourselves.Oureffortssincebecominganindependentcompanyhavebeenrecognized.In2022,EcoVadis,atrustedbusiness-sustainabilityratingsplatformthatisheavilyreliedonbyourcustomers,upgradedoursustainabilityratingfromSilvertoGoldforourESGstrategy,placingusinthe96thpercentileofallevaluatedcompanies.COLLEAGUESWebelievethatengagedcolleaguesdeliverbetterservicetoourcustomers.Wemeasureengagementbyconductingcolleaguesurveystwiceyearly.Theresults,whicharereportedtoourBoardandmanagement,helpusassesshowcolleaguesfeelaboutworkingforus.Weusethesurveyresultstodevelopactionplanstoaddressareasofconcern.Theengagementsurveys,whichanonymizethedata,covertopicssuchassafety,ethics,belonging,quality,companyprospects,inclusion,empowerment,accountabilityandmanagerialeffectiveness.StakeholderengagementPercentageofcolleaguessurveyedwhorespondedfavorably.SurveyresultsarefromSeptember2022.ColleagueEngagementSurveyESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESAPPENDIXGOVERNANCE&ACCOUNTABILITYHowhappyareyouworkingatourcompany?74%Colleaguesafetyisatoppriorityatourcompany.89%Icanraiseethicalconcernswithoutfearofretaliation.78%IhavethesupportIneedtodoaqualityjob.72%2022ESGREPORT50AppendixADDITIONALINFORMATION(ALPHABETICAL)ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXEH&SAUDITSANDREVIEWSBothinternalandexternalauditsandreviewsareroutinelyperformedtoensureOtisoperationsmeetinternalandexternalexpectations.Thesereviewsarecriticalastheycontinuallyenhanceknowledgeofoperatingrequirements.Whengapsarerevealedthroughanaudit,correctiveactionsaredevelopedtoaddressthemandtrackedtoclosure.CertainOtislocationsinEuropearesubjecttotheEuropeanUnion(EU)EnergyDirectiveandfilesubmissionstoregulatoryagencies.Examplesofsomeoftheseauditsandreviewsare:•Corporateenergyassessmentsareperformedatleasteverythreeyears,asrequiredbyourEH&SManagementSystem.•Compliance,FocusedFieldAuditsandAssuranceReviewprogramauditsarepartofourinternalEH&Sauditprogramandareperformedatleastonceeveryfouryears.•FatalityPreventionAuditsareconductedtwiceannuallywitheachfieldcolleague.•Externalthird-partydataverificationisconductedaspartoftheCDPreportingprocess.•Additionalthird-partyauditsaredoneforfacilitiesthatmaintainISO14001and/orISO50001certification.EH&SMANAGEMENTSYSTEMOtishasimplementedandmaintainsamanagementsystemthatisbasedonISO14001,Environmentalmanagementsystems,andISO45001,Occupationalhealthandsafetymanagementsystems.ISO14001isasetofstandardsdesignedtoimproveresourceefficiencyandwastereduction,whilereducingcost.ISO45001isasetofstandardsdesignedtoreduceinjuriesandillness,bothphysicalandmental.TheEH&SManagementSystemhelpssupporttheimplementationofthefollowing:•Structureandresponsibilities•Environmentalprograms•Targetsandobjectives•Trainingandawareness•Datacompilationsystems•AuditingandannualprogramevaluationsInadditiontoachievingourgoalof100%ofourfactoriesbeingISO14001certifiedin2021(seepage26),12ofour17manufacturingfacilitiesareISO45001certified.TenofourfacilitieshavealsoachievedISO50001certification,theglobalenergymanagementsystemsstandardforestablishing,implementing,maintainingandimprovingenergymanagement.2022ESGREPORT51AppendixADDITIONALINFORMATION(CONTINUED)OtisTOGETHER:ToprovideasafeandinclusiveworkenvironmentforallLGBTQ+colleaguesandtheiralliesandtocelebrateaninclusiveworkplacethatdoesnottolerateaggressionordiscriminationirrespectiveofsexualorientation,genderidentificationorgenderexpressionOtisWIN:Toserveasaresourcetopromotefemaleprofessionals’advancementthroughoutOtisOtisWomen’sNetwork:TosupportandpromotetheadvancementofwomenwithinOtisthroughmentoring,supportingpersonalandprofessionaldevelopment,andsimplybeingthereforoneanotherPride:ToempowerandinspiremembersoftheLGBTQ+communitythroughoutOtisbydrivingchangesincompanypolicyandculturesUbuntu:FocusedoncolleaguesofAfricandescentinLatinAmerica.UbuntuisanancientAfricanwordmeaning“humanitytoothers.”Italsomeans“IamwhatIambecauseofwhoweallare”WAVE:TosupportandpromoteOtis’Asian&PacificIslanderprofessionalsthroughmentorship,communityoutreachandnetworkingWomenEmpowerment:TosupportthedevelopmentofleadershipinwomenatOtisWomeninTechnology:Toconnectthecreative,innovativeandhardworkingwomenintheSTEMfieldatOtisWomenOtisSouthernZone:Forallwomen(ofalllevels)tocometogethertofocusonprogressiveinitiativestofurtherdevelopwomenintheSouthernZoneofLatinAmericaEMPLOYEERESOURCEGROUPS(ERGs)Worldwide,morethan2,200colleaguesandalliesparticipateinover20ERGs,eachdedicatedtofosteringadiverseandinclusiveworkenvironmentthroughengagementthatpositivelyimpactsbusinessoutcomes.Thesecolleague-ledgroupsprovidementoring,careerguidanceandmutualsupportforthosewhosharetheaffinitiesandconcernsofacommonrace,ethnicity,gender,genderidentity,sexualorientation,disability,generation,veteranstatusandmore.ERGsfunctionwithbusinessproposalsandcontinualgoalsettingandaresupportedthroughexecutiveparticipationandfunding.OtisERGsplayanimportantroleinhelpingpeopleoutsideourorganization–particularlyprospectivecolleagues–understandwhatOtisstandsforandwhoweaspiretobe.WecontinuetoexpandourERGsandrecentlylaunchedachapteroftheOtisWomen’sNetworkintheMiddleEast.WealsorebrandedtheAllAbilitiesERGtoOtisThrive,whichfocusesonmentalhealth,well-being,colleagueswithdisabilitiesandcaregivers.ThisERGisactiveacrosstheU.S.andLatinAmericaandplanstocontinuegrowingglobally.Aloha:Voluntary,women-ledgroupinIndiatofosteradiverse,inclusiveworkplace,alignedwithorganizationalmission,valuesandgoalsElevar:ProvidesafespaceforLGBTQ+colleaguesandalliestoshareinterest,spreadawareness,bringknowledge,empowerothersandbrainstormtogethernomatterhoweachpersonmayidentifyEleVets:Toprovideveteransandnon-veteransanoutletforcollaborationandnetworkingForward:TopromotetheretentionandadvancementofwomenwithinOtisFieldOperationsGen4:Topromotetheactivemanagementofgenerationaldiversity,aswellaspromotegoodpracticeswithinOtisHola:TopromoteHispaniccultureandprofessionalsthroughnetworking,culturaldiversityandcommunityoutreachMomentum:ToacceleratethedevelopmentofaconnectedcommunityofBlackprofessionalswithinOtisfocusedonpromotingDE&IMujeresempoderadas:ToserveasaresourceforwomentoadvancetheircareeratOtisthrougheducation,training,mentoringandoutreachNTN:TocreateaseamlesstransitionfornewtalentjoiningOtisbyofferinganimprovednewhireexperienceOrgulloOtis:ToraiseawarenessabouttheLGBTQ+communitythroughoutOtis,providingsupport,emphasizingourcontributions,enhancingourvoice,anddrivingchangesincompanypoliciesandcultureOtisThrive:Toadvocateformembersofthementalhealth,disabilityandcaregivercommunitywhilecontinuouslyfocusingonwell-beingESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT52AppendixADDITIONALINFORMATION(CONTINUED)ENVIRONMENTALPRODUCTDECLARATIONSOtiscurrentlyhas11EPDs,andweremaincommittedtopublishingEPDsfor100%ofournext-generationelevatorandescalatorproductplatforms.EPDspresenttransparent,verified,andcomparableinformationabouttheenvironmentalimpactofproductsandservicesthroughouttheirlifecycle.Theycommunicatetheenvironmentalperformanceorimpactofproductsormaterialsovertheirlifetime,whicharchitects,designersandengineersfindvaluable.Inaddition,customersuseEPDstocomparetheimpactsofvariousmaterialsandproductstohelpthemselectthemostsustainableoption.OurportfolioofEPDscoversthemajorityofunitssoldintheEMEAandNorthAmericaregions,aswellasthehigh-riseandescalatormarketswhereEPDshavebecomeanintegralpartofbuildingequipmentchoiceandintegrationprocess.Withinthedevelopedworld,EPDssupportthesuccessofourbusinessandareacompetitiveadvantage,allowingustotrackandoptimizetheimpactofourproductsandmarketourtransparencyrelatedtocarbonemissions.Withintheemergingworld,ourEPDsfocusoninfrastructure,ascustomerpullisstrongestwithinthatvertical.OurEPDsarepublishedinaccordancewithISO14025,whichquantifiesenvironmentalinformationonthelifecycleofaproduct,andeachEPDhasaprecisebreakdownoftheproduct’smaterials.EachalsoconsiderscompliancewiththeEU’sREACH(registration,evaluation,authorizationandrestrictionofchemicals)andROHS(RestrictionofHazardousSubstancesinElectricalandElectronicEquipment)regulations.And,eachincludesalifecycleassessmentthatevaluatesenergyusage,wastegenerationandairemissionsinthefollowingphases:•Upstream:Rawmaterialsupply,transportandoutsourcedmanufacturing•Core:In-housemanufacturing•Downstream:Transportandinstallation,useoroperation,andend-of-lifetreatmentWehaveidentifiedrawmaterialextractionandenergyconsumptionduringtheelevator’susagephaseasthemostrelevantproduct-relatedenvironmentalimpacts.Thedownstreamuse(operational)phaseisthelongestportionofthelifecycle,soenergyconsumptionisoneofthemainenvironmentalimpacts.ThepublishedEPDsandexpectedScope3category11inventorywillbeusedasabaselineofourproducts’environmentalperformance.Theywillsupportinformeddecisionsaboutourfutureproductdesigntoensurethatwecontinuetoreducetheenvironmentalimpactoftheproductsweoffer.EPDssignalamanufacturer’scommitmenttomeasuringandreducingtheenvironmentalimpactofitsproductsandservicesandreporttheseimpactsinahyper-transparentway.Source:InternationalEPDSystemESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT53AppendixADDITIONALINFORMATION(CONTINUED)HAZARDOUSWASTEIn2022,Otisgeneratedapproximately316,000poundsofhazardouswastefromproductionfacilities,whichamountstolessthan1%ofourtotalindustrialwastegenerated.Wedefinehazardouswasteaccordingtotheenvironmentalregulationsinthejurisdictionofthefacility.Overtheyears,wehavelimitedoreliminatedtheuseofsubstancesofconcernduringproductdevelopmentandmanufacturing.Ourhazardouswastereductionapproachincludeseffortstominimizetheuseoftargetmaterialsinproductsandreducecolleagueexposuretochemicalstolevelsthatdonotrequiretheuseofpersonalprotectiveequipment.Weachievedourprevioushazardouswastereductiontargetin2020.Giventhealreadylowpercentageofhazardouswastewecreate,wehavenotsetanewtarget.INDUSTRIALPROCESSRECYCLINGOver98%offactory-generatedindustrialprocesswasteisrecycled.Wearefocusedonsustainablerawmaterialprocurement,useanddisposal,andonexpandingtheuseofreusablepackaging.Wearecontinuingtoimplementpoliciesandprocedureswithinouroperationstoensurethesustainableprocurementanduseofallrawmaterialsinourfactories,integratingenvironmentallypreferredpurchasingpracticesandprovidingtrainingandraisingawarenessforourfactorycolleagues.HAZARDOUSWASTEGENERATEDFROMPRODUCTIONFACILITIESThousandsofpounds,except%hazardouswaste2019202020212022Hazardouswaste239.8207.8262.2315.6Totalindustrialwaste43,19530,88633,23836,348%Hazardouswaste0.6%0.7%0.8%0.9%EnvironmentaldatareflectadjustmentstoremoveRussiabusiness(whichhasbeendivested)fromallyearsshowninthistable.EnvironmentaldataismeasuredannuallyfromDecember1throughNovember30.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT54AppendixADDITIONALINFORMATION(CONTINUED)PRODUCTENHANCEMENTSANDDIGITALIZATIONEFFORTSMechanicsafetyGen360:Ourmostadvancedelevator,Gen360,isequippedwithin-carmaintenancefunctionality,whichkeepsthemechanicoutofpotentiallyunsafeconditions.Afoldable,in-ceilingplatformallowsmaintenanceoperationstobeperformedsafelyfromwithinthecarratherthanontopofit.And,dependingonlocalregulations,iteliminatestheneedforarefugespaceabovethecarandtheprotrusionontheroofforaflatroofdesign.Inaddition,thisproductincludeselectronicsafetysystemsthatreplaceelectromechanicalsafetydevices.Thisfurtherenhancesmechanicsafetyduringmaintenance,asthedigitalsafetysystemcanalsopreventtheelevatorfrommovingwhensomeoneisperformingmaintenanceinthehoistway.Theelectronicsafetysystemalsominimizesthelikelihoodofpassengerentrapmentsduringanelevatormalfunction.Tuneapp:TheTuneappispartofasuiteofproprietaryappsthatareavailabletoourfieldprofessionals.Thisappwasdevelopedtoleveragetheinternalmicrophoneandaccelerometerofthemechanic’ssmartphonealongwithalibraryofelevatorparameters.Thesmartphonecanbeplacedontheflooroftheelevatorcaboronanescalatorhandrailtodiagnosetherootcauseofnoiseandvibrationproblemswithinseconds,empoweringmechanicstomakequickdecisionsandminimizetheirexposuretohazardsduringtroubleshooting.BeforetheTuneapp,troubleshootingnoiseandvibrationissuesrequiredtheuseofcomplexdatacollectionsystemsandtime-consumingprocessingbyengineeringexperts.In2022,weintroducedanewcapabilityintotheTuneappthatallowsthemechanictomeasurethebrakestoppingdistancejustbyputtingthephoneinsidethecar.Withthepriorprocedure,mechanicshadtogotothemachineroom,removesheaveguardingandmeasuresheaverotationstodeterminethebrakestoppingdistance.WiththenewbrakeinspectionfunctionalitywithinTune,itismucheasierandsaferformechanicstoensurethatbrakesareoperatingcorrectly.EnvironmentalCompass360:OurproprietaryCompass360destinationmanagementsystemgroupspassengersbytheirdesireddestinationanddirectsthemtoanassignedcarthatminimizeswaitingandridetime.Thesystem’salgorithmsanticipatetrafficdemandwithinabuildingandimprovetrafficflow.Bydoingso,weareabletoreducethenumberoftripsorincreasethethroughputinabuilding,reducingthecarbonfootprintofourcustomers.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT55IoTinactionProblem:MaintenanceissuewithanelevatorQuestion:Doweneedtosendoutamechanic(rollatruck)?Maximizeefficiency,reducedowntime,fewerunnecessarytruckrollsLoweremissionsGoal/Outcome:AppendixADDITIONALINFORMATION(CONTINUED)PRODUCTENHANCEMENTSANDDIGITALIZATIONEFFORTS(CONTINUED)EnvironmentalOtisONE:Otis’IoTserviceplatformautomaticallycollectselevatordataandtransfersittothecloud,helpingtoimprovethecustomerexperienceandreduceservicedisruptions.Thedataprovidescontinuousvisibilityoftheunitsinourmaintenanceportfolioandisleveragedtoimprovepredictivemaintenancealgorithms.Withthedeploymentofthisconnectedproduct,wehaveexperiencedreductionsinunnecessaryservicecalls.Thishasreducedfleetemissionsthroughremovalofextraneoustraveltoandfromcustomers.In2022,weavoidedmorethan17,000runningonarrivals.Asoftheendof2022,wehadover300,000OtisONEunitsinourmaintenanceportfolio,includingunitsunderwarranty.Thesearepartofthe35%ofourconnectedportfolio.OtisONEhelpsusdiscernwhentoconductmaintenanceandtoidentifywhenanissuerequiresanon-siterepair.Thisinturnreducesunnecessaryvisits,costtothecustomerandfleetGHGemissions.MAINTENANCECALL(noremotetechnology)MAINTENANCECALL(usingremotetechnology)TruckrollsoutOtisconductsremotediagnosticstounderstandtheproblemMechanicarrivesatbuildingtoassesstheproblema)Theproblemcanbefixedremotelyb)Theproblemcanbefixedbythebuildingstaffc)TruckrollsoutusuallyknowingwhattoolsandpartsarenecessaryforarepairMechanicspeakstobuildingstaff,locatestheproblem,determinesthepropertoolsand/orpartsneeded,allofwhichincreasesdowntimeMechanicfixestheproblemMechanicfixestheproblem1122334ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT56AppendixADDITIONALINFORMATION(CONTINUED)PRODUCTENHANCEMENTS&DIGITALIZATIONEFFORTS(CONTINUED)EnvironmentalReGendrive:OurReGendrivefeedselectricalenergybackintothebuildingpowergrideverytimetheloadisgoingdownward.Byutilizingthebrakingphasetogenerateelectricitythatcanbeusedtodriveotherelevatorsorforotherequipmentinthebuilding,weenablecostsavingsandlowernetelectricityconsumption.Energyefficiencyisincreasedbyupto75%comparedtoconventionalhydraulicunits,loweringoverallbuildingoperatingcostsanddeliveringsignificantannualsavingstobuildingownersandtenantsyearafteryearduringthelifeoftheelevator.ReGendriveshelptomeetorexceedestablishedworldwidestandards.ThecompactmodulardesignoftheReGendrivecanhelpmeetcustomers’sustainabilitytargetsbecauseofitsabilitytoretrofitoldinstallationsanddecarbonizeexistingbuildings.CustomerExperienceeView/OtisONEmultimedia:Otisoffersmultimediasubscriptionoptionswithadditionalvoice,dataandvideodigitalservicestocustomersleveragingourIoTtechnologies.Ourin-cardisplay–eView–streamslive,customizableinfotainmenttopassengersandcanconnectthemtoOTISLINE,our24-hourservicecallcenter,duringanemergency.Thissystemalsomeetsaccessibilityrequirementstoguidehearingorspeechimpairedpassengersduringemergencysituations.WATERUSAGEIn2022,Otisused42.3milliongallonsofwater,whichincluded4.1milliongallonswithdrawnfromwellsources.Werecycledapproximately1milliongallonsfornonpotablereuse.Wedischargeonlysanitarywastewater,whichistreatedatthemunicipallevel.Weuseminimalwaterinourmanufacturingprocesses,withprimaryusageattributabletosanitarypurposeswithinourfacilitiesandoffices.Since2015,ourwaterconsumptionhasdeclinedby40%.Ourgoalgoingforwardistomaintainourexistingwaterusagelevels.TOTALVOLUMEOFWATERCONSUMEDMillionsofgallons2019202020212022Waterconsumed44.543.040.542.3Includesproductionfacilitiesandlargeofficesonly.EnvironmentaldatareflectsadjustmentstoremoveRussiabusiness(whichhasbeendivested)fromallyearsshowninthistable.EnvironmentaldataismeasuredannuallyfromDecember1throughNovember30.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXYearlyEnergyUseEstimatesOtishasbeenattheforefrontoftheindustrybyincludingReGendrivesasaglobalstandardproductconfiguration.Thissubstantiallyreducestheenvironmentalimpactduringtheusephaseofourproduct.HydraulicSystemGearedSystemGen2Non-ReGenSystemGen2ReGenSystem~75%reduction~55%reduction~35%reductionKwHr/Yr2022ESGREPORT57AppendixEEO-1TABLE2021U.S.EMPLOYMENTDATAJOBCATEGORIESHISPANICORLATINONON-HISPANICORLATINOOVERALLTOTALSMaleFemaleMaleFemaleWhiteBlackorAfricanAmericanNativeHawaiianorPacificIslanderAsianAmericanIndianorAlaskaNativeTwoorMoreRacesWhiteBlackorAfricanAmericanNativeHawaiianorPacificIslanderAsianAmericanIndianorAlaskaNativeTwoorMoreRacesExecutive/SeniorOfficials&Managers4047406003750600109First/MidOfficials&Managers6921628411374101711907121,011Professionals4231516541953927553047241,132Technicians38377919070465170317277SalesWorkers18282741508031531431018535AdministrativeSupport2322424170111091220405620CraftWorkers44674,86222818842320591301005,761Operatives101617402105620002218Laborers&Helpers2651325703167310001269ServiceWorkers000000000000000Total6761527,0235092025333528632363785299,932DisclosureincludescolleaguesworkingatU.S.sitesandontheDecember1-15,2021,U.S.payroll.ItdoesnotincludeU.S.executivesonglobalassignmentsoutsideoftheU.S.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT58AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI102:GENERALDISCLOSURESORGANIZATIONALPROFILE102-1NameoftheorganizationOtisWorldwideCorporation102-2Activities,brands,products,andservices2022Form10-K,pgs.4-6102-3LocationofheadquartersFarmington,CT,USA102-4LocationofoperationsWeservecustomersinover200countriesandterritories.Wehaveadirectphysicalpresencein80countrieswithover1,400branchesandoffices.Wealsohave17manufacturinglocations.2022Form10-K,pgs.4,25102-5OwnershipandlegalformOtisisapubliclyheldcorporationincorporatedinthestateofDelaware.OursharestradeontheNewYorkStockExchangeunderthesymbolOTIS.102-6MarketsservedWeservecustomersinover200countriesandterritories.2022Form10-Kpg.4102-7ScaleoftheorganizationApproximately69,000employees;$13.7billionnetsales;approximately2.2millionunitsmaintained2022Form10-Kpgs.6,10,30102-8InformationonemployeesandotherworkersAboutourbusiness2022Form10-K,pg.10Appendix>EEO-1DataTable102-9SupplychainSuppliersarecriticaltooursuccessandaccountforasignificantpercentageoftotalcosttoourbusinessannuallyviadirectmaterials,suchasrawmaterialsandcomponentsforNewEquipmentandService;indirectservices,suchaslogistics;fleetvehicles;professionalservices;andsubcontractorsthatassistwithelevatorinstallations.2022Form10-K,pgs.9,15102-10SignificantchangestotheorganizationanditssupplychainOtissolditsbusinessinRussiaduring2022.2022Form10-K,pg.28ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT59AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI102:GENERALDISCLOSURESSTRATEGY102-11PrecautionaryPrincipleorapproachOtisdoesnotfollowtheprecautionaryapproachbuthasacomprehensiveriskmanagementplaninplace.2023ProxyStatement,pgs.19-21102-12Externalinitiatives50/50WomenonBoards,ParadigmforParity,U.N.GlobalCompact,Disability:IN102-13MembershipofassociationsConnecticutBusinessIndustryAssociation(CBIA),ConstructionSafetyResearchAlliance(CSRA),GlobalElevatorSafetyForum(GESF),NationalElevatorIndustry,Inc.(NEII),NationalForeignTradeCouncil(NFTC)102-14Statementfromseniordecision-makerAmessagefromourCEO102-15Keyimpacts,risksandopportunities2022Form10-K,pgs.13-24ETHICSANDINTEGRITY102-16Values,principles,standardsandnormsofbehaviorTheOtisAbsolutes:Safety,EthicsandQualityAlignmentofOtisbusinessstrategywithESGpillars102-17MechanismsforadviceandconcernsaboutethicsMultipleReportingChannels,includingforanonymousreporting,areavailableanddescribedfullyonourdedicatedsite.Thesemechanismsareprovidedbyphone(1-833-833-3001),byonlinesubmittalthroughouranonymouswebline,byemailatethics@otis.com,and/orbymailtoOtisWorldHeadquarters,1CarrierPlace,Farmington,CT,USA06032Attn:GlobalEthics&ComplianceOffice.GOVERNANCE102-18Governancestructure2023ProxyStatement,pgs.12-39102-19DelegatingauthorityTheBoardanditscommitteesengageincomprehensivereviewandoversightofissuesrelatedtoESG.102-20Executive-levelresponsibilityforeconomic,environmentalandsocialtopicsTheESGCounciliscomposedofseniorleadersrepresentingmultiplefunctions:Communications,Engineering,Environment,Health&Safety,HumanResources,InvestorRelations,Legal,Quality&ContinuousImprovement,andSupplyChainandSustainability.102-21Consultingstakeholdersoneconomic,environmentalandsocialtopics2023ProxyStatement,pgs.5,21,38-39Governance&Accountability>StakeholderengagementAtOtis,wearecommittedtounderstandingstakeholderconcernsandworkingfortheglobalgoodofourcolleagues,customers,passengersandsociety.Weregularlyconsultwithourstakeholdersoneconomic,environmentalandsocialtopics.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT60AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI102:GENERALDISCLOSURESGOVERNANCE(CONTINUED)102-22Compositionofthehighestgovernancebodyanditscommittees2023ProxyStatement,pgs.12-39102-23ChairofthehighestgovernancebodyChair,CEOandPresident,JudyMarks2023ProxyStatement,pgs.17-18102-24Nominatingandselectingthehighestgovernancebody2023ProxyStatement,pgs.13-16,26-39102-25ConflictsofinterestRelatedPersonTransactionsPolicy2023ProxyStatement,pgs.12-27102-26Roleofhighestgovernancebodyinsettingpurpose,values,andstrategy2023ProxyStatement,pgs.17-21102-27Collectiveknowledgeofhighestgovernancebody2023ProxyStatement,pgs.13-15,26-36102-28Evaluatingthehighestgovernancebody’sperformance2023ProxyStatement,pg.29102-29Identifyingandmanagingeconomic,environmental,andsocialimpacts2023ProxyStatement,pgs.3-5,19-21102-30Effectivenessofriskmanagementandprocesses2023ProxyStatement,pgs.19-21102-31Reviewofeconomic,environmental,andsocialtopics2023ProxyStatement,pgs.3-5,19-21,38-39102-32Highestgovernancebody’sroleinsustainabilityreportingBoardofDirectors102-33Communicatingcriticalconcerns2023ProxyStatement,pgs.19-21,38-39102-35RemunerationpoliciesGovernance&Accountability>ExecutiveCompensation2023ProxyStatement,pgs.12,40-62102-36Processfordeterminingremuneration2023ProxyStatement,pgs.12,40-62102-37Stakeholders’involvementinremuneration2023ProxyStatement,pgs.38-39,45,47ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT61AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI102:GENERALDISCLOSURESSTAKEHOLDERENGAGEMENT102-40ListofstakeholdergroupsGovernance&Accountability>StakeholderEngagement2023ProxyStatement,pgs.38-39102-41CollectivebargainingagreementsApproximately64%ofourworkforceintheU.S.iscoveredbycollectivebargainingagreements.OutsidetheU.S.,ourcolleaguesarerepresentedbyworkers’councilsorstatutorylaborunionsasmaybecustomaryorrequiredinthosejurisdictions.2022Form10-K,pg.10102-42IdentifyingandselectingstakeholdersGovernance&Accountability>StakeholderEngagement102-43ApproachtostakeholderengagementGovernance&Accountability>StakeholderEngagement2023ProxyStatement,pgs.38-39,45,47102-44KeytopicsandconcernsraisedGovernance&Accountability>StakeholderEngagement2023ProxyStatement,pg.39REPORTINGPRACTICE102-45Entitiesincludedintheconsolidatedfinancialstatements2022Form10-K,pg.60102-46DefiningreportcontentandtopicBoundariesContents102-47ListofmaterialtopicsGovernance&Accountability>CorporateandESGGovernance102-48RestatementsofinformationNone102-49ChangesinreportingNone102-50ReportingperiodJanuary1-December31,2022102-51DateofmostrecentreportMarch31,2022102-52ReportingcycleAnnual102-53Contactpointforquestionsregardingthereportinvestorrelations@otis.comESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT62AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI102:GENERALDISCLOSURESREPORTINGPRACTICE(CONTINUED)102-54ClaimsofreportinginaccordancewiththeGRIstandardsThisreporthasbeenpreparedaccordingtotheGRIStandards.102-55GRIcontextindexAppendix>GlobalReportingInitiative(GRI)102-56ExternalassuranceWeengagedathirdpartyforlimitedassurancecoveringcertainhealthandsafety,environmentandimpact,andpeopleandcommunitiesmetrics.ForthisESGreport,thescopeofworkwaslimitedtoassuranceoverreportedScope1andScope2(locationbased)GHGemissions,percentageofrenewableelectricityconsumed,hazardouswastegenerated,industrialprocesswastegenerated,recycledindustrialprocesswaste,industrialwasterecyclingrate,waterconsumptionfortheperiodDecember1,2021,toNovember30,2022,andfortheTRIR,LTIR,andpercentfemalerepresentationinmanagement(global)fortheperiodJanuary1,2022,toDecember31,2022.SeetheIndependentLimitedAssuranceStatementfor2022startingonpg.77.GRI200:ECONOMICGRI205:ANTI-CORRUPTION103-1ExplanationofthematerialtopicanditsBoundaryWeupholdthehigheststandardsforstronggovernance,ethicsandintegrity,whicharedrivenbyourAbsolutes.Suppliersareacriticalpartofourbusinessand,assuch,arerequiredtoabidebyourSupplierCodeofConduct.TheCodeholdsoursuppliersaccountabletothesamestandardsweestablishforourselves,startingwithourAbsolutesofSafety,EthicsandQuality.103-2ThemanagementapproachanditscomponentsGovernance&Accountability>SupplierCodeofConductGovernance&Accountability>Ethicsandintegrity103-3EvaluationofthemanagementapproachTomaintainourcultureofintegrityandtrustandtodrivecompliancewithourAbsolutesandcompanypolicies,weconductonlinerisk-basedcompliancetrainingonaquarterlybasisontopicssuchasmodernslavery,anti-humantrafficking,antitrust,conflictsofinterest,protectingcompanydata,cybersecurity,dataprotection,anti-harassment,anti-discrimination,anti-corruptionandanti-bribery.Seepgs.44-45forreferencestoourSupplierCodeofConductandanti-corruptionefforts.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT63AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI200:ECONOMICGRI205:ANTI-CORRUPTION(CONTINUED)205-2Communicationandtrainingaboutanti-corruptionpoliciesandproceduresOur2022Ethics&Compliancetrainingincluded:a99%completionrateofannuallive,supervisor-ledethicstrainingforallOtiscolleaguesanda96%completionrateoftargetedonlineethicstrainingcourses.Morethan97%ofoursalariedcolleagueshaveattested,throughanannualcertificationin2022,thattheyhaveread,understandandarecommittedtocomplyingwithTheOtisAbsolutesandOtispolicies.Additionally,wecelebratedGlobalEthicsDay,witheachregionleadingactivitiesfocusedontheimportanceofspeakingupandontherolethatourOtisAbsolutesplayatOtis.GRI300:ENVIRONMENTALGRI302:ENERGY103-1ExplanationofthematerialtopicanditsBoundaryWearecommittedtomanagingtheimpactwehaveonourenvironment.WeestablishedourfirstformalcorporateandfacilityenergyefficiencyandGHGemissionreductiontargetsin1997.103-2ThemanagementapproachanditscomponentsAcornerstoneofourfactoryemissionreductionprogramistheimplementationofenergybestmanagementpractices.103-3EvaluationofthemanagementapproachOtisconductsenergyauditseverythreeyearsatourglobalfactoriestoobtainadetailedhistoryofenergyusageandidentifyopportunitiestoworksmarterbyimplementingnewtechnologyandimprovingenergyefficiency.Bytheendof2022,weimplementedover60%ofthefeasibleenergybestpracticestoourglobalfactories.Fourofourmanufacturingplantsnowsource100%ofelectricityfromrenewablesources.302-1EnergyconsumptionwithintheorganizationIn2022,totalenergyconsumedwasreduced8.9%to632.2GWh(14.1%reductionfrom2019baseline).302-3EnergyintensityIn2022,energyintensitywasreduced4.7%to46.2MWh/$Mnetsales(19.2%reductionfrom2019baseline).ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT64AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI300:ENVIRONMENTALGRI303:WATERANDEFFLUENTS103-1ExplanationofthematerialtopicanditsBoundaryWeuseminimalwaterinourmanufacturingprocesses,withprimaryusageattributabletosanitarypurposeswithinourfacilitiesandoffices.103-2ThemanagementapproachanditscomponentsWemeasuregallonsofwaterused(inclusiveofwaterwithdrawnfromwellsources)andgallonsofwaterrecycled.Ourgoalgoingforwardistomaintainourexistingwaterusagelevels.103-3EvaluationofthemanagementapproachSince2015,ourwaterconsumptionhasdeclinedby40%.303-5WaterconsumptionIn2022,totalvolumeofwaterconsumedwas42.3milliongallons.GRI305:EMISSIONS103-1ExplanationofthematerialtopicanditsBoundaryEnvironment&Impact103-2ThemanagementapproachanditscomponentsEnvironment&Impact>Goal:Achievea50%reductionofScope1andScope2emissionsby2030103-3EvaluationofthemanagementapproachOtisreducedScope1andScope2GHGemissionsby4.8%in2022,withacumulativereductionof11%versusour2019baseline.Thesereductionsarethedirectresultofmajorinitiativesimplementedoverthepastseveralyears.305-1Direct(Scope1)GHGemissionsIn2022,direct(Scope1)GHGemissionswerereduced2.4%to131.7(000’smetrictonsCO2e)(7.7%vs2019baseline).305-2Energyindirect(Scope2)GHGemissionsIn2022,indirect(Scope2)GHGemissionswerereduced9.5%to66.8(000’smetrictonsCO2e)(16.9%vs.2019baseline).305-3Otherindirect(Scope3)GHGemissionsEnvironment&Impact>Scope3emissions305-4GHGemissionsintensityIn2022,Scope1andScope2GHGemissionsintensitywasreduced.7%to14.5(metrictonsCO2e/$Mnetsales)(16.2%vs2019baseline).305-5ReductionofGHGemissionsReductionofScope1andScope2GHGemissionsby4.8%in2022,withacumulativereductionof11%vs.our2019baseline.Environment&Impact>Scope3emissionsESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT65AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI300:ENVIRONMENTALGRI306:WASTE103-1ExplanationofthematerialtopicanditsBoundaryAppendix>Hazardouswaste103-2ThemanagementapproachanditscomponentsAppendix>Hazardouswaste103-3EvaluationofthemanagementapproachAppendix>Hazardouswaste306-1Wastegenerationandsignificantwaste-relatedimpactsAppendix>Hazardouswaste306-2Managementofsignificantwaste-relatedimpactsAppendix>Hazardouswaste306-3WastegeneratedAppendix>Hazardouswaste>HazardouswastegeneratedfromproductionfacilitiesGRI308:SUPPLIERENVIRONMENTALASSESSMENT103-1ExplanationofthematerialtopicanditsBoundaryGovernance&Accountability>SupplierCodeofConduct103-2ThemanagementapproachanditscomponentsGovernance&Accountability>SupplierCodeofConduct103-3EvaluationofthemanagementapproachGovernance&Accountability>SupplierCodeofConduct308-1NewsuppliersthatwerescreenedusingenvironmentalcriteriaGovernance&Accountability>SupplierCodeofConductESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT66AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI400:SOCIALGRI401:EMPLOYMENT103-1ExplanationofthematerialtopicanditsBoundaryPeople&Communities>employmentpolicies,conditions&laborrelations103-2ThemanagementapproachanditscomponentsPeople&Communities>employmentpolicies,conditions&laborrelations103-3EvaluationofthemanagementapproachPeople&Communities>employmentpolicies,conditions&laborrelations401-1NewemployeehiresandemployeeturnoverTheglobalattritionrateatOtisremainsinthemid-singledigits,asithasbeenthepastfewyears.AlthoughwehaveseenanuptickinattritionsincetheCOVID-19depressedratesof2020,webelieveourcurrentretentionratereflectsoverallstrongOtiscolleaguesatisfaction,positivelyimpactedbyactionsdrivenfromourDE&Istrategy.GRI403:OCCUPATIONALHEALTHANDSAFETY103-1ExplanationofthematerialtopicanditsBoundaryHealth&Safety>Committoachieveazero-harmworkplace103-2ThemanagementapproachanditscomponentsHealth&Safety>Committoachieveazero-harmworkplace103-3EvaluationofthemanagementapproachHealth&Safety>Committoachieveazero-harmworkplace403-1OccupationalhealthandsafetymanagementsystemWeutilizeanEH&SManagementSystemthatblendstherequirementsofISO14001andISO45001.Thesystemspotlightsdevelopingoperation-leveldocumentation,rootcauseanalysisandsharingofbestpracticesacrossourglobalfacilities,withthemostnotabledifferencebeingagreateremphasisoncolleagueparticipation.403-2Hazardidentification,riskassessment,andincidentinvestigationWetrackandreportincidentsandconductincidentinvestigationsandrootcauseanalysesasappropriate.403-3OccupationalhealthservicesOurfundamentalwork-safetyprinciplesaretheCardinalRules.Itisimperativethattheserulesarefollowed.Wearecommittedtokeepingourworkplacessafefromhazards,ensuringthatourfieldcolleaguesandsubcontractorsareinjury-free,andthatourproductsandservicesremainsafefortheridingpublicandeveryonewhointeractswithOtisequipment.Aspartoftheseefforts,wehavecommittedtospecificoccupationalhealthservicesrelatedgoals.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT67AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI400:SOCIALGRI403:OCCUPATIONALHEALTHANDSAFETY(CONTINUED)403-4Workerparticipation,consultation,andcommunicationonoccupationalhealthandsafetyHealth&Safety>Committoachieveazero-harmworkplace403-5WorkertrainingonoccupationalhealthandsafetyHealth&Safety>Committoachieveazero-harmworkplace403-6PromotionofworkerhealthOtisoffersmentalhealthsupporttoallOtiscolleaguesthroughanEmployeeAssistanceProgram(EAP),providingamixofwork-lifeservices,24/7livesupport,andtreatmentorreferralsforclinicalhealthissuesforcolleaguesinneed.In2022,allOtiscolleagueswerecoveredbyourEAP.403-7PreventionandmitigationofoccupationalhealthandsafetyimpactsdirectlylinkedbybusinessrelationshipsBothinternalandexternalauditsandreviewsareroutinelyperformedtoensureOtisoperationsmeetinternalandexternalexpectations.Whengapsarerevealedthroughanaudit,correctiveactionsaredevelopedtoaddressthemandtrackedtoclosure.CertainOtislocationsinEuropearealsosubjecttotheEUEnergyDirectiveandfilesubmissionstoregulatoryagencies.403-9Work-relatedinjuriesTRIR:2022=0.57LTIR:2022=0.17ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT68AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI400:SOCIALGRI404:TRAININGANDEDUCATION103-1ExplanationofthematerialtopicanditsBoundaryPeople&Communities>Talenthiring,developmentandretention103-2ThemanagementapproachanditscomponentsPeople&Communities>Talenthiring,developmentandretention103-3EvaluationofthemanagementapproachPeople&Communities404-2ProgramsforupgradingemployeeskillsandtransitionassistanceprogramsPeople&Communities>Talenthiring,developmentandretentionGRI405:DIVERSITYANDEQUALOPPORTUNITY103-1ExplanationofthematerialtopicanditsBoundaryPeople&Communities>Talenthiring,developmentandretention103-2ThemanagementapproachanditscomponentsPeople&Communities>Talenthiring,developmentandretention103-3EvaluationofthemanagementapproachPeople&Communities>Talenthiring,developmentandretention405-1DiversityofgovernancebodiesandemployeesAppendix>EEO-1DataTableGRI413:LOCALCOMMUNITIES103-1ExplanationofthematerialtopicanditsBoundaryPeople&Communities>Goal:Impact15,000studentsgloballythroughSTEM-focusedprogrammingtoimprovelivelihoodsandhelpbuildtheworkforceoftomorrowby2030People&Communities>Goal:Direct50%oftotalglobalgivingtoSTEMprogramsby2025People&Communities>Goal:Dedicate500,000cumulativevolunteerhoursinsupportofvibrantcommunities,STEMeducationandsocialequityeffortsgloballyby2030ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT69AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI400:SOCIALGRI413:LOCALCOMMUNITIES(CONTINUED)103-2ThemanagementapproachanditscomponentsPeople&Communities>Goal:Impact15,000studentsgloballythroughSTEM-focusedprogrammingtoimprovelivelihoodsandhelpbuildtheworkforceoftomorrowby2030People&Communities>Goal:Direct50%oftotalglobalgivingtoSTEMprogramsby2025People&Communities>Goal:Dedicate500,000cumulativevolunteerhoursinsupportofvibrantcommunities,STEMeducationandsocialequityeffortsgloballyby2030103-3EvaluationofthemanagementapproachPeople&Communities>Goal:Impact15,000studentsgloballythroughSTEM-focusedprogrammingtoimprovelivelihoodsandhelpbuildtheworkforceoftomorrowby2030People&Communities>Goal:Direct50%oftotalglobalgivingtoSTEMprogramsby2025People&Communities>Goal:Dedicate500,000cumulativevolunteerhoursinsupportofvibrantcommunities,STEMeducationandsocialequityeffortsgloballyby2030413-1Operationswithlocalcommunityengagement,impactassessmentsanddevelopmentprogramsPeople&Communities>Goal:Dedicate500,000cumulativevolunteerhoursinsupportofvibrantcommunities,STEMeducationandsocialequityeffortsgloballyby2030GRI414:SUPPLIERSOCIALASSESSMENT103-1ExplanationofthematerialtopicanditsBoundaryGovernance&Accountability>Quality103-2ThemanagementapproachanditscomponentsGovernance&Accountability>SupplierCodeofConductESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT70AppendixGLOBALREPORTINGINITIATIVE(GRI)DISCLOSURENUMBERDISCLOSURETITLERESPONSEGRI400:SOCIALGRI414:SUPPLIERSOCIALASSESSMENT(CONTINUED)103-3EvaluationofthemanagementapproachGovernance&Accountability>SupplierCodeofConduct414-1NewsuppliersthatwerescreenedusingsocialcriteriaOtiswillnotdobusinesswithanyentitythatisunwillingtocomplywiththeprinciplesoftheOtisSupplierCodeofConduct,whichrequiressupplierstomeetexpectationsaroundissuessuchassafety,ethicsandhumanrights.Toadvanceourprogramonanti-humantrafficking,weexpandedourtrainingfromtheprocurementdepartmenttoconductingsalariedstafftraining.Lookingforward,wewillcontinuetomonitortheemergingregulatorylandscapetoensureOtisiswellpositionedtodetect,mitigateanddeterhumantrafficking.GRI418:CUSTOMERPRIVACY103-1ExplanationofthematerialtopicanditsBoundaryGovernance&Accountability>Cybersecurity,dataprivacyandintellectualproperty103-2ThemanagementapproachanditscomponentsGovernance&Accountability>Cybersecurity,dataprivacyandintellectualproperty103-3EvaluationofthemanagementapproachGovernance&Accountability>Cybersecurity,dataprivacyandintellectualproperty418-1Substantiatedcomplaintsconcerningbreachesofcustomerprivacyandlossesofcustomerdata2022Form10-K,pg.19ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT71AppendixSUSTAINABILITYACCOUNTINGSTANDARDSBOARD(SASB)TOPICACCOUNTINGMETRICCATEGORYUNITOFMEASURECODERESPONSE/REFERENCEELECTRICAL&ELECTRONICEQUIPMENTSTANDARDEnergyManagement(1)Totalenergyconsumed,(2)percentagegridelectricity,(3)percentagerenewableQuantitativeGigajoules(GJ),Percentage(%)RT-EE-130a.1(1)Totalenergyconsumed–632.2GWh(2)Percentagegridelectricity–24%(3)NotreportedHazardousWasteManagementAmountofhazardouswastegenerated,percentagerecycledQuantitativeMetrictons(t),Percentage(%)RT-EE-150a.1(1)143.2Mt(2)Over98%offactory-relatedindustrialprocesswastewasrecycled.Numberandaggregatequantityofreportablespills,quantityrecoveredQuantitativeNumber,Kilograms(kg)RT-EE-150a.2NotmaterialtoourbusinessProductSafetyNumberofrecallsissued,totalunitsrecalledQuantitativeNumberRT-EE-250a.1Notgenerallyapplicabletoourbusiness,astherearenotrecallsissuedinthetraditionalsenseforourproducts.TotalamountofmonetarylossesasaresultoflegalproceedingsassociatedwithproductsafetyQuantitativeReportingcurrencyRT-EE-250a.2ThereisnothingmoreimportanttoOtisthanthesafetyofourcolleagues,customersandpassengers.Wemove2billionpeopleeveryday,soinfrequentaccidentscanhappen,andclaimsforcompensationcanbebrought.Otishasnotdisclosedthefigureassociatedwiththeseclaims.ProductLifecycleManagementPercentageofproductsbyrevenuethatcontainIEC62474declarablesubstancesQuantitativePercentage(%)byrevenueRT-EE-410a.1NotreportedPercentageofeligibleproducts,byrevenue,thatmeetENERGYSTAR®criteriaQuantitativePercentage(%)byrevenueRT-EE-410a.2NotmaterialtoourbusinessRevenuefromrenewableenergy-relatedandenergyefficiency-relatedproductsQuantitativeReportingcurrencyRT-EE-410a.3NotreportedMaterialsSourcingDescriptionofthemanagementofrisksassociatedwiththeuseofcriticalmaterialsDiscussionandAnalysisn/aRT-EE-440a.12022Form10-K,pgs.9,15ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT72AppendixSUSTAINABILITYACCOUNTINGSTANDARDSBOARD(SASB)TOPICACCOUNTINGMETRICCATEGORYUNITOFMEASURECODERESPONSE/REFERENCEELECTRICAL&ELECTRONICEQUIPMENTSTANDARD(CONTINUED)BusinessEthicsDescriptionofpoliciesandpracticesforpreventionof:(1)corruptionandbriberyand(2)anti-competitivebehaviorDiscussionandAnalysisn/aRT-EE-510a.1Governance&Accountability>SupplierCodeofConductGovernance&Accountability>EthicsandintegrityTotalamountofmonetarylossesasaresultoflegalproceedingsassociatedwithbriberyorcorruptionQuantitativeReportingcurrencyRT-EE-510a.2NotreportedTotalamountofmonetarylossesasaresultoflegalproceedingsassociatedwithanticompetitivebehaviorregulationsQuantitativeReportingcurrencyRT-EE-510a.3NotreportedEmployeeHealth&Safety(1)Totalrecordableincidentrate(2)Fatalityrate(3)NearmissfrequencyrateQuantitativeRateRT-IG-320a.1(1)0.57TRIR(2)3Fatalities(3)NotreportedACTIVITYMETRICSNumberofunitsproducedbyproductcategoryQuantitativeNumberRT-EE-000.ANotreportedNumberofemployeesQuantitativeNumberRT-EE-000.BApproximately69,000Inthisreport,wearealigningwiththeElectrical&ElectronicEquipmentStandardbutincludingtheemployeehealthandsafetydisclosuresfromtheIndustrialMachineryandGoodsstandardbecausewedeemthistobeamaterialtopic.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT73AppendixTASKFORCEONCLIMATE-RELATEDFINANCIALDISCLOSURES(TCFD)DISCLOSUREFOCUSAREARECOMMENDEDDISCLOSURECOMMENTSREFERENCEGOVERNANCEDisclosetheorganization’sgovernancearoundclimate-relatedrisksandopportunities.a)Disclosetheboard’soversightofclimate-relatedrisksandopportunities.Otis’BoardanditscommitteesengageinextensivereviewandoversightofESG-relatedtopics,includingclimate-relatedriskandopportunities.TheNominationsandGovernanceCommitteehasprimaryoversightovermostESGtopics,includingtheOtisESGstrategyandgovernancemodel,healthandsafety,sustainability,andclimate-relatedrisksandopportunities,DE&I,corporatesocialresponsibility,andcharitablegiving.ItalsopursuesitsESGoversightthroughtheintegrationofgovernancebestpracticesintotheboardroomandwithshareholderengagement.2023ProxyStatement,pgs.19-21Governance&Accountability>CorporateandESGGovernanceb)Describemanagement’sroleinassessingandmanagingclimate-relatedrisksandopportunities.OtishasestablishedadedicatedESGCouncilcomposedofseniorleadersrepresentingmultiplefunctions:Communications,Engineering,Environment,Health&Safety,HumanResources,InvestorRelations,Legal,Quality&ContinuousImprovement,andSupplyChainandSustainability.AninternalESGWorkingGroup,composedofsubjectmatterexperts,assiststheESGCouncilindevelopingandeffectuatingthecompany’sESGstrategy.Boththecouncilandworkinggroupmeetfrequently,withtheESGCouncilreportingregularlytotheCEO.2023ProxyStatement,pgs.19-21Governance&Accountability>CorporateandESGGovernanceSTRATEGYDisclosetheactualandpotentialimpactsofclimate-relatedrisksandopportunitiesontheorganization’sbusinesses,strategyandfinancialplanning.a)Describetheclimate-relatedrisksandopportunitiestheorganizationhasidentifiedovertheshort,medium,andlongterm.b)Describetheimpactofclimate-relatedrisksandopportunitiesontheorganization’sbusinesses,strategy,andfinancialplanning.c)Describetheresilienceoftheorganization’sstrategy,takingintoconsiderationdifferentclimate-relatedscenarios,includinga2°Corlowerscenario.In2021,Otisengagedaleadingthird-partytoconductaClimateRisksandOpportunitiesscenarioanalysis,whichidentifiedtherisksandopportunitiesmostrelevanttoOtisthroughacombinationofdataanalysis,stakeholderinterviewsandthird-partyexpertise.Risksandopportunitieswereevaluatedovertheshort-term(fiveyears),mid-term(2030)andlong-term(2050+)timehorizons.Theimpactandlikelihoodofeachriskoropportunitywasconsideredundertwoscenarios:a2˚Corlowerscenarioandaˮbusiness-as-usualˮscenario.Thescenariosfollowedwell-definedinternationalmodelsbasedontheIntergovernmentalPanelonClimateChange’sRepresentativeConcentrationPathways(RCP),theSharedSocioeconomicPathways(SSP)andtheInternationalEnergyAgency(IEA).TheRCPfocusesonclimatedata;theSSPintegratessocialandeconomicoutputs;andtheIEAestimatesenergyandfuelsupplytransitions.Throughthisexercise,fourrisksandtwoopportunitieswereprioritizedforfurtherdiscussionregardingbothdisclosureandbusinessstrategy.Environment&ImpactESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT74AppendixTASKFORCEONCLIMATE-RELATEDFINANCIALDISCLOSURES(TCFD)DISCLOSUREFOCUSAREARECOMMENDEDDISCLOSURECOMMENTSREFERENCESTRATEGY(CONTINUED)Disclosetheactualandpotentialimpactsofclimate-relatedrisksandopportunitiesontheorganization’sbusinesses,strategyandfinancialplanning.a)Describetheclimate-relatedrisksandopportunitiestheorganizationhasidentifiedovertheshort,medium,andlongterm.b)Describetheimpactofclimate-relatedrisksandopportunitiesontheorganization’sbusinesses,strategyandfinancialplanning.c)Describetheresilienceoftheorganization’sstrategy,takingintoconsiderationdifferentclimate-relatedscenarios,includinga2°Corlowerscenario.Risks:Risk1:Disruptionstocriticalsuppliers/supplyinfrastructureduetoclimate-relatedchanges(e.g.,sealevelrise)Impact:Chronicchanges,suchassealevelrise,impactsuppliersandshippingduetofloodingincriticalregionswhereOtisoperates.Resilience:Otisislookingtoexpanditssourcingbeyondcurrentsupplierstoboostresilienceandreduceexposure.Risk2:Increasedcostsduetochanginginputprices(e.g.,energy,water)andoutputrequirements(e.g.,carbonpricingandwastetreatment)Impact:Changingenergymarketsincreaseinputcosts;wastedisposalrequirementsincreasecostsofproductend-of-lifemanagement;andcarbonpricingwillrequirepaymentforemissions.Resilience:Otishasseta2030emissionreductiongoal,whichcouldleadtocostsavingsassociatedwithcarbonpricing,andthereareprocessesinplacetomonitorregulatorytrends.Risk3:Extremeheatimpactingproductivityandavailabilityofemployeesandproductionportfolio(shutdowns,increasedcoolingcosts)Impact:Extremeheatlowersemployeeproductivityinthefield,damagesmachinery,increasescoststocoolmachinesandshortenspartlifetimes.Resilience:OtishasdeployedIoTconnectivityandremoteservicing,alongwithexistingsafetyprocedures,andhasputinplacebusinesscontinuitypractices.Risk4:IncreasedfrequencyandseverityofcoastalfloodingandextremeweathereventscausingbusinessdisruptionsImpact:SupplychainandoperationsdisruptionsfrommorefrequentandsevereextremeweathercouldcausedamagetoOtis’facilities.Resilience:Otishasbeguntoinvestinclimate-impactdatatosupportdecisionsonlong-termlocationsandrealestatestrategy.Environment&ImpactESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT75AppendixTASKFORCEONCLIMATE-RELATEDFINANCIALDISCLOSURES(TCFD)DISCLOSUREFOCUSAREARECOMMENDEDDISCLOSURECOMMENTSREFERENCESTRATEGY(CONTINUED)Disclosetheactualandpotentialimpactsofclimate-relatedrisksandopportunitiesontheorganization’sbusinesses,strategyandfinancialplanning.a)Describetheclimate-relatedrisksandopportunitiestheorganizationhasidentifiedovertheshort,medium,andlongterm.b)Describetheimpactofclimate-relatedrisksandopportunitiesontheorganization’sbusinesses,strategy,andfinancialplanning.c)Describetheresilienceoftheorganization’sstrategy,takingintoconsiderationdifferentclimate-relatedscenarios,includinga2°Corlowerscenario.Opportunities:Opportunity1:IncreaseddemandforOtisproductsandservicesduetogrowingpopulationsinurbanareasandextremeweathereventsImpact:IncreasedrevenuethroughdemandforOtisproductstoaccommodategrowthinurbanpopulationsandlandconstraintsResilience:Planningforlong-terminvestmenttoscaleservicesandnewproductsmostappropriateforthetypeofnewbuildingdemandOpportunity2:IncreasedmarketdemandforrevitalizationandOtisenergyefficientequipment,duetoincreasesinclimatepressures,consumerdemand,andinresponsetocurrentandemergingmandatesandregulationsImpact:IncreasedrevenuethroughdemandforenergyefficientproductsandmodernizationofexistingproductsResilience:Strivingfor60%ofourportfoliounitstobeconnectedoverthemedium-termEnvironment&ImpactRISKMANAGEMENTDisclosehowtheorganizationidentifies,assessesandmanagesclimate-relatedrisks.a)Describetheorganization’sprocessesforidentifyingandassessingclimate-relatedrisks.b)Describetheorganization’sprocessesformanagingclimate-relatedrisks.c)Describehowprocessesforidentifying,assessing,andmanagingclimate-relatedrisksareintegratedintotheorganization’soverallriskmanagement.AnumberofESGrisksareexpresslyconsideredintheERMriskidentificationandassessmentprocess,includingclimate-relatedrisks;meetingstakeholderESGexpectations;ESGreportinginaccordancewiththeGlobalReportingInitiative(GRI)Standards,aswellasinalignmentwiththeSustainabilityAccountingStandardsBoard(SASB)guidelinesfortheResourceTransformationsectorandtheTaskForceonClimate-relatedFinancialDisclosures(TCFD);DE&I;ethicalculture;andcolleagueandpublicsafety.ESGrisksandcorrespondingmitigationactionsthatdonotmakethelistofTopERMRisksaremanagedbytheESGCouncilandESGWorkingGroup,usingamodifiedversionoftheERMprocess.2023ProxyStatement,pgs.19-21Governance&Accountability>CorporateandESGGovernanceESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT76AppendixTASKFORCEONCLIMATE-RELATEDFINANCIALDISCLOSURES(TCFD)DISCLOSUREFOCUSAREARECOMMENDEDDISCLOSURECOMMENTSREFERENCEMETRICSANDTARGETSDisclosehowtheorganizationidentifies,assesses,andmanagesclimate-relatedrisks.a)Disclosethemetricsusedbytheorganizationtoassessclimate-relatedrisksandopportunitiesinlinewithitsstrategyandriskmanagementprocess.Otismonitorsseveralmetricstomeasureprogresstowardachievingour2030targets,includingemissionsgenerated,energyconsumptionandmanagement,andwastedisposal.Environment&Impact>GlobalGHGMetricsb)DiscloseScope1,Scope2and,ifappropriate,Scope3greenhousegas(GHG)emissions,andtherelatedrisks.RefertotheGlobalGHGmetricssectionofEnvironment&ImpactforScope1andScope2GHGemissionreporting.WithrespecttoScope3emissions,theenduseofourproductsbyourcustomersandourpurchasedgoodsandservicesaccountforthemajorityofourScope3emissions.WeareworkingthroughthequantificationofScope3emissionsandweintendtosubmittoSBTiin2023.c)Describethetargetsusedbytheorganizationtomanageclimate-relatedrisksandopportunitiesandperformanceagainsttargets.Achievea50%reductionofScope1andScope2emissionsby2030Reachcarbonneutralityforfactoryelectricityby2030Achieve100%factoryeligibilityforzero-waste-to-landfillcertificationby2025CompleteISO14001certificationforallfactoriesby2025(goalachieved)ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT77AppendixTHIRD-PARTYASSURANCEESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT78AppendixTHIRD-PARTYASSURANCEESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT79AppendixTHIRD-PARTYASSURANCEESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT80AppendixTHIRD-PARTYASSURANCEESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIX2022ESGREPORT81AppendixNON-GAAPRECONCILIATIONSFY2022organicsaleschangeFY2022Organic2.5%FX(5.9%)Netacquisitions/divestitures(0.9%)Totalnetsaleschange(4.3%)($millions)FY2022Sales,NetIncomeandOperatingprofitOtisNewEquipmentServiceCorporate/otherGAAPNetsales13,6855,8647,821Russia(106)(86)(20)Adjustednetsales13,5795,7887,801GAAPNetincomeattributabletoOtis1,253Noncontrollinginterestinsubsidiaries116Incometaxexpense519Netinterestexpense143Non-servicepensioncost(benefit)2GAAPoperatingprofit2,0333581,789(114)Restructuring6023370Russiaoperations5(3)44Russiasaleandconflict-relatedcharges283223Adjustedoperatingprofit2,1263811,832(87)GAAPoperatingprofitmargin14.9%6.1%22.9%n/aAdjustedoperatingprofitmargin15.7%6.6%23.5%n/a($millions)FreecashflowFY2022Operatingcashflow1,560Capitalexpenditures(115)Freecashflow1,445ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXAdjusteddilutedearningspershareFY2022GAAPdilutedearningspershare$2.96Impactofnon-recurringitemsondilutedearningspershare$0.21Adjusteddilutedearningspershare$3.172022ESGREPORT82ThecompanyreportsitsfinancialresultsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates(“GAAP”).WesupplementthereportingofourfinancialinformationdeterminedunderGAAPwithcertainnon-GAAPfinancialinformation.Thenon-GAAPinformationpresentedprovidesinvestorswithadditionalusefulinformationbutshouldnotbeconsideredinisolationorassubstitutesfortherelatedGAAPmeasures.Moreover,othercompaniesmaydefinenon-GAAPmeasuresdifferently,whichlimitstheusefulnessofthesemeasuresforcomparisonswithsuchothercompanies.Weencourageinvestorstoreviewourfinancialstatementsandpubliclyfiledreportsintheirentiretyandnottorelyonanysinglefinancialmeasure.Adjustednetsales,organicsales,adjustedoperatingprofit,adjusteddilutedearningspershare(“EPS”)andfreecashflowarenon-GAAPfinancialmeasures.Adjustednetsalesrepresentsnetsales(aGAAPmeasure),excludingsignificantitemsofanon-recurringand/ornonoperationalnature(“othersignificantitems”).Organicsalesrepresentsconsolidatednetsales(aGAAPmeasure),excludingtheimpactofforeigncurrencytranslation,acquisitionsanddivestiturescompletedinthepreceding12monthsandothersignificantitems.Thecompany’smanagementbelievesorganicsalesisausefulmeasureinprovidingperiod-to-periodcomparisonsoftheresultsofthecompany’songoingoperationalperformance.Adjustedoperatingprofitrepresentsincomefromcontinuingoperations(aGAAPmeasure),excludingrestructuringcostsandothersignificantitems.AdjusteddilutedEPSrepresentsdilutedearningspershareattributabletocommonshareholders(aGAAPmeasure),adjustedforthepershareimpactofrestructuringandothersignificantitems,includingrelatedtaxeffects.Thecompany’smanagementbelievesthatadjustednetsales,organicsales,adjustedoperatingprofitandadjusteddilutedEPSareusefulmeasuresinprovidingperiod-to-periodcomparisonsoftheresultsofthecompany’songoingoperationalperformance.Freecashflowisanon-GAAPfinancialmeasurethatrepresentscashflowfromoperations(aGAAPmeasure)lesscapitalexpenditures.Thecompany’smanagementbelievesfreecashflowisausefulmeasureofliquidityandanadditionalbasisforassessingOtis’abilitytofunditsactivities,includingthefinancingofacquisitions,debtservice,repurchasesofcommonstockanddistributionofearningstoshareholders.Areconciliationofthenon-GAAPmeasurestothecorrespondingamountspreparedinaccordancewithGAAPappearsinthetablesonthepreviouspages.Thesetablesprovideadditionalinformationastotheitemsandamountsthathavebeenexcludedfromtheadjustedmeasures.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXAppendixUSEANDDEFINITIONSOFNON-GAAPFINANCIALMEASURES2022ESGREPORT83CautionarystatementThisreportcontainsforward-lookingstatements(includingstatementsthatconstituteforward-lookingstatementsunderthesecuritieslaws),including,butnotlimitedto,statementsthatrelatetoourintenttoachievecertainenvironmental,socialandgovernanceplans,targets,goalsandfuturerisksassociatedwithclimatechange.Theseforward-lookingstatementsareintendedtoprovidemanagement’scurrentexpectationsorplansforourfutureoperatingperformance,basedonassumptionscurrentlybelievedtobevalid.Allsuchforward-lookingstatementsaresubjecttorisksanduncertainties,andourfutureresultsofoperationscoulddiffermateriallyfromourhistoricalresultsorcurrentexpectationsreflectedbysuchforward-lookingstatements.Theforward-lookingstatementsaresubjecttofutureevents,risks,uncertaintiesandotherfactors,manyofwhicharebeyondthecontrolofthecompany,thatcouldcauseactualresultstodiffermateriallyfromourhistoricalresultsorcurrentexpectations,including,butnotlimitedto,changesinregulationsandlaw;severeweatherevents,includingfromtheeffectsofclimatechange;challengesinthedevelopment,production,delivery,support,performanceandrealizationoftheanticipatedbenefitsofadvancedtechnologiesandnewproductsandservices;changesintheeconomicandpoliticalconditionsintheindustryandmarketsinwhichweoperate;andotherrisksanduncertaintiesdescribedindetailinthecompany’smostrecentForm10-K,Form10-QandinsimilarsectionsofotherfilingsmadebythecompanywiththeSecuritiesandExchangeCommissionfromtimetotime.Theforward-lookingstatementsspeakonlyasofthisdate.Weundertakenoobligationtopubliclyupdateorreviseanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise,exceptasrequiredbyapplicablelaw.ESGATOTISHEALTH&SAFETYENVIRONMENT&IMPACTPEOPLE&COMMUNITIESGOVERNANCE&ACCOUNTABILITYAPPENDIXCompanynames,trademarksandtradenamesOtisanditssubsidiaries’names,abbreviationsthereof,logos,andproductandservicedesignatorsareeithertheregisteredorunregisteredtrademarksortradenamesofOtisanditssubsidiaries.Namesofothercompaniesandorganizations,abbreviationsthereof,logosofothercompaniesandorganizations,andproductandservicedesignatorsofothercompaniesareeithertheregisteredorunregisteredtrademarksortradenamesoftheirrespectiveowners.2022ESGREPORT84OtisWorldwideCorporation1CarrierPlace,Farmington,CT06032USAotis.com

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