OTISEnvironmental Report

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Table of contents

United Technologies Corporation 3

UTC 2010 Goals 4

Otis Elevator Company 7

Green Manufacturing 8

Otis in the UK & Ireland 10

GeN2® 12

Modernisation 16

Installing Green 17

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United Technologies Corporation based in Hartford,

Connecticut, USA is a diversified company providing

high technology products and services to the building

and aerospace industries.

UTC co-chairs the World Business Council for

Sustainable Development (WBCSD), Energy Efficiency

in Building (EEB) project and has been given the status

of Champion of Energy Efficiency by the American

Council for an Energy-Efficient Economy (ACEEE).

United TechnologiesCorporation (UTC)

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UTC’s

2010 Goals

Otis’ 2010 corporate goals have been set by our parent

company United Technologies Corporation (UTC).

UTC developed its first set of environment, health and

safety goals in 1991 with remarkable progress made

during this period.

The goals were then revised in 2007 and extended

through to 2010.

UTC’s 2010 goals are just as aggressive as past goals and

include several significant changes, e.g. for the first time,

our environmental expectations include important new

products. An important measurement to assess green-

house gas reduction is also included.

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2010 GOALS

20%

reduction

12% 30%

Non-Recycled

10%

Industrial Process

10%

ChemicalsDischarged

10%

Consumption

Non GreenhouseGas Emissions

Greenhouse Gases(Co2 Equiv.) Waste

Water

Energy conservation and greenhouse gas (GHG) re-

duction are an important part of UTC’s 2010 goals.

Prior to 2002, there was no accepted standard for

measuring GHG emissions. For the 2010 goals, UTC

adopted the GHG accounting standards and meth-

odologies set out by the World Business Council for

Sustainable Development and the World Resources

Institute GHG Protocol.

UTC’s goal is to reduce absolute GHG emissions by 3

percent annually through 2010. This is an aggressive

goal as about 2 percent was achieved annually since

1997. Reductions are intended to be made through

investments in energy conservation projects.

FACTORY AND OPERATIONS METRICS

reductionreduction reduction

reductionreduction

In 1997, goals of reducing water use by 40 percent by

2006 were added. These water goals have been sub-

stantially exceeded, with water usage reduction com-

parably down 44 percent, or 1.7 billion gallons annu-

ally. Further goals have now been added to reduce

water usage within the next three years.

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2010 GOALS

SUPPLIER METRICS

Critical suppliers

An important new metric in the 2010 goals is sup-

plier Environment Health & Safety (EH&S) expecta-

tions. The global scope of UTC’s operations provides

the opportunity to affect all businesses positively.

Representatives from UTC’s Supply Managementand EH&S groups have designed a programme thatsets five minimum EH&S expectations for the com-modities and suppliers that have the greatest EH&Srisk.

UTC’s critical suppliers will be asked to assess

themselves against EH&S expectations and to

document corrective actions where necessary.

Critical suppliers are defined as those providing the

top 80 percent of UTC’s raw materials, special proc-

esses and industrial product purchases. Data will be

collected and tracked and other commodity

groups will be added as the programme develops.

10%

increase

Energy Efficiency

10%

reduction

Packaging

Minimum Requirements for ProductDevelopment

in product packaging from baseline product

100%

Meet UTC Environment Health and Safetyexpectations

100%

eliminated in new products

Materials of concern

UTC will continue pursuing its goal to eliminate

materials of concern from new products. As done

in the past, UTC seeks to minimise the environ-

mental footprint of products, and looks to the

United Technologies Research Centre (UTRC) and

research and development functions at business

units to guide them toward environmentally sound

products and solutions.

PRODUCT METRICS

“UTC has been named in the prestigious DowJones Sustainability World Indexes, whichrecognise the top 10 percent of companiesfrom more than 60 industries and 24 countriesthat are leaders in the area of corporatesustainability. UTC has been chosen everyyear since the indexes began in 1999”.

Dow Jones Sustainability indexes, 2006

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Otis ElevatorCompany

Otis Elevator Company is a wholly owned subsidiary of

United Technologies Corporation and the world's largest

company in the manufacture, installation and service of

lifts, escalators and moving walkways. With headquarters

in Farmington, Connecticut, USA, Otis employs approx

63,000 people, offers products and services in more than

200 countries and territories and has 2.1 million lifts and

escalators in operation worldwide.

Otis is committed to continually improving the entirelifecycle of its products to meet with its long term goals.This means engineering products that save energy andhave a longer life, encouraging sustainable developmentand responsible manufacturing processes:- leading theway to a greener future.

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Green

Manufacturing

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Otis

GREEN MANUFACTURING

Otis continues to build upon its worldwide successes

with the opening of the worlds first “green” elevator

manufacturing facility.

The Otis TEDA Elevator Centre, is located in the heart

of China’s Tianjin Economic Technological Develop-

ment Area (TEDA) on a 1.5 million square foot site.

The Otis TEDA Elevator Centre produces GeN2®

lifts and energy-saving, high-speed permanent

magnet gearless systems.

Heating and cooling

Grass and plants cover a portion of the roof,

providing a natural outdoor environment and

significantly reducing cooling needs.

• Most of the roofing is made from highly-reflective

materials to minimise the need for mechanical

cooling.

• Coated glass provides insulation to minimise solar

heating.

• Extra shading devices reduce the need for cooling.

• Natural ventilation systems reduce the need for

mechanical ventilation.

• Advanced chillers reduce energy use.

• Energy is recovered from the ventilation system with

the use of heat exchangers.

Lighting

Increased use of daylight reduces the need for

electric lighting.

Daylight sensors turn off electric lights when

sufficient natural light is available.

Water

• Rainwater is harvested from roofs and combined

with recycled water to meet all site irrigation and

sanitary needs.

The advanced technologies incorporated into the

centre are designed to provide energy savings and

environmental benefits throughout the life of the

building.

Otis TEDA Elevator Centre

Otis TEDA Elevator Centre

Environmental protection

Environmental protection and preservation is at the

forefront of our priorities and is included in our daily

activities. Our guiding principle is to minimise waste

in all areas including; manufacturing, storage and

transport, operations, branch offices and job sites.

During product development, using our extensive

engineering knowledge and new technologies we

aim to create products which are more efficient

and therefore better for the environment.

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Otis in the UK & Ireland

Otis in the UK & Ireland employs approx. 2000 employees andmaintains 25 percent of units nationwide.

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MAKING OUR PROCESSES GREEN

Otis

We continue to use web and

teleconferencing facilities to

ensure our employees can

participate in meetings

without the need to travel.

Recycling facilities for paper, plastic and general

consumables (batteries, lighting, printer cartridges)

are available on our Otis premises.

e*Logistics™

Making the sales and installation process

electronic has resulted in a reduction in

paper usage, streamlined our operations

process, provided a direct link to the factory

and increased efficiency.

Otis UK & Ireland has achieved a 24% reduction in

average company car fleet Co2 emissions between

2000 and 2007. Our challenge will be to reduce this

further to meet our 2010 objective. A major reduc-

tion was achieved when the fleet was changed

from a predominately petrol fleet to an all diesel

fleet. This has meant an average decrease from

204g/km to 157g/km.

Reducing our averagecompany car fleet Co2 emissions

Service Engineers

Technology has been

introduced in many aspects of the

product life cycle. Engineers are

able to access site visit information

on Personal Digital Assistant’s

(PDA’s). These aid in the scheduling

of maintenance visits and reduce

unnecessary paper

usage.

Environmental Initiatives

Harmful Substances

We are committed to reducing green-house gas

and ozone depleting substances. Particular

attention is paid to the selection of substances

such as cleaners and paints to ensure that

emissions to the environment are minimised.

The company maintains a list of Approved

Substances and these are subject to checks on

site when the regular inspections and audits are

conducted.

197 197 196

150157

168179

195

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007

Year

Co

2Em

issi

on

s(g

/km

)

Co2 movement

This year, Otis UK & Ireland will be pursuing certifica-

tion to ISO14001. We have currently completed

stage 1 of the audit and will complete stage 2 by

mid 2008. ISO14001 is an internationally accepted

standard that sets out how we go about putting in

place an effective Environmental Management

System (EMS) to help us reduce the impact we

have on the environment.

We continue to drive our own initiatives to meet ourglobal 2010 environmental aims and objectives.

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The GeN2® machine-room less lift system is designed toprovide energy savings in a wide variety of applications,from low-rise residential to high-rise commercial build-ings.

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GeN2®

INCREASING ENERGY EFFICENTLY

The GeN2® combines 21st century technologies and

materials to achieve 21st century objectives: energy

efficiencies, environmental responsibility, passenger

safety, increased usable space, time-saving installa-

tion and design flexibility.

The GeN2® machine takes up only thirty percent ofthe space of a conventional machine. The permanentmagnet synchronous motor, with a radial air gap,consumes less energy than conventional motors usingnon permanent magnetic fields.

The GeN2® machine is manufactured from recyclablematerials, utilises sealed for life bearings and operateswithout a gearbox, thus does not use any oil. Reliabilityis enhanced by using a maintenance-free disc brakewith materials which are asbestos free.

THE MACHINE: COMPACT AND ENERGYEFFICIENT

At the heart of the GeN2® liftare the lightweight, flexiblesteel reinforced belts whichare quieter, 20 per cent lighterand have a life span two tothree times longer thanconventional ropes.

The unique suspension systemavoids the additionallubrication required by conventional rope systemsand their superior life span reduces the wastecaused when ropes are replaced.

Their superior flexibility allows the belts to bendaround smaller diameter sheaves resulting in moreefficient transfer of power from the machine to thecar thus resulting in a reduction in motor size.

GeN2® belts require no additional lubrication and

have a superior life span compared to steel ropes,

making them cleaner for the environment.

STEEL REINFORCED BELTS: REVOLUTIONARYTECHNOLOGY AT THE CORE

The GeN2® lift won the 2006 “Korea GreenManagement Excellence Award”. This award ispresented annually by Korea ManagementAssociation Registration & Assessments Inc.(KMAR), a member organisation of the SouthKorean government’s Ministry of Industry,Commerce and Energy.

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Remote Elevator Monitoring (REM®)

The REM® system is an advanced diagnostic and

communication system which provides continuous

monitoring of Otis lifts.

The benefit of REM® is being able to troubleshootissues that happen very quickly and make sure thatthe lift can be put back into service as quickly aspossible.

REM® has allowed us to manage the planning of

service engineers and subsequently reduced

unplanned travelling.

PULSE ™ System

Otis’ Pulse™ system continually monitors the status of

the flat coated steel belts 24 hours a day, 7 days a

week.

Pulse technology increases the reliability of inspec-

tion and reduces downtime of the lift. This makes the

GeN2® lifts an incredibly versatile and safe product.

GeN2®

The GeN2® controller is designed with technology

which further increases the lift efficiency. The

control system uses state of the art algorithms to

ensure efficient traffic handling without unneces-

sary car journeys thus saving power, while most of

the components are recyclable.

The motion control system uses a flux vector con-

trol technique thus taking the power consumed

for a given load and speed to the minimum, while

the optional application of regenerative drives

means that any power produced by the lift is fed

back to the supply for use by other building

equipment.

CONTROLLER AND DRIVE: RELIABLE ANDACCURATE

American business magazine “Fast Company” lists Otisin the top 50 ways to green your business. The GeN2®

lift combined with its regenerative drive has meant thelift is up to 75% more efficient than conventionalsystems.

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GeN2®

ReGen™ DRIVES

Spain’s leading weekly business magazine,

“Actualidad Económica” selected the GeN2®

Comfort lift as one of the “100 best ideas of

2005” .

The GeN2® has also received the Green

Product Award from the Environmental

Protection Foundation China.

As the product of choice for “green” buildinginitiatives, ReGen™ drives deliver substantialenergy savings while helping to meet or exceedestablished worldwide standards.

In a typical non-regenerative drive situation,energy is dissipated as heat in a set of resistors whenbraking occurs, resulting in reduced efficiency andcreating additional waste-heat loads in the building.ReGen™ drives feed this energy back into thebuilding’s internal electrical grid where it can beused by other loads or users connected to the samenetwork.

ReGen™ drives reduce energy usage by up to 75percent compared to non-regenerative drives. Thedrives are so efficient that their power factor is closeto unity.

ReGen™ drives produce “clean power” — resultingin less pollution of the building’s electrical powersystem and helping to protect sensitive buildingequipment. The drives minimise distortion of theincoming sinusoidal waveform line current, makingTotal Harmonic Distortion (THD) at nominal loadtypically equal to or below 5 percent, versus morethan 80 percent in non-regenerative drives.

ReGen™ drives substantially minimise RadioFrequency Interface (RFI), or ElectromagneticInterference (EMI) — virtually eliminating disruptionsto other building electronic systems and ensuringcompliance with strict regulations around the world.

ReGen™ drives lower overall building operatingcosts, delivering significant annual savings to buildingowners and tenants year-after-year during the life ofthe lift.

The drives help reduce the two key factors thatinfluence energy costs, peak power demand andenergy consumption. As a result, both the fixed costsbased on peak power demand (kilovolt amperes orkVA) and variable costs based on energyconsumption (kilowatt-hours or kWh) decrease.

Electrical power is generated when the lift travels upwith a light load, travels down with a heavy load andduring the lift system deceleration. In effect, a fullyloaded, descending elevator can now provide asignificant portion of the power for an adjacent as-cending elevator.

Only available on specific products andinstallations.

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Modernisation

Choosing to modernise an existing lift can extend

the life of the lift by up to 20 years.

With the introduction of advanced energy saving

control systems and new strategic components the

power requirements can also be substantially

dropped.

For all modernisations, any equipment which is

removed is disposed of in the correct manner. In

situations where hydraulic systems are being

replaced, hydraulic specialists are employed to

remove and dispose of the old oil in line with

statutory requirements.

The latest modernisation advancement is the ability

to interface the machine and drive from our

GeN2® system on to existing equipment. As a

minimum the ropes, machine and controller are

replaced. This system offers the ability to update a

20+ year old lift to a system which requires no

additional lubrication on the ropes combined with

an exceptionally energy efficient controller.

GEN2® MODERNISATION

Using recyclable materials, flat belt technology

and regenerative drives make the GeN2® lift more

energy efficient then comparable equipment a

decade ago.

GeN2® Modernisation in lift shaft

GeN2® Modernisation controller and machine

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Installing “Green”

Otis install its environmentally friendly products into avariety of different buildings across the globe.

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Installing “Green”

Otis Elevator Company, was awarded a contract

to supply and install 17 lifts and escalators at 400

George Street, a 150-meter-tall (492 feet) office

building in Brisbane’s central business district in

Queensland, Australia.

The 400 George Street project is a landmark office

tower, combining 43,000 square metres of prime

grade commercial and retail space. It is the first

building in the Brisbane commercial business district

to receive the “5 Star Green Star” certified rating for

meeting stringent national environmental criteria.

Thiess Contractors Pty. Ltd., the company

commissioned to construct the development,

selected Otis for the project. “We strongly identified

with Otis’ commitment to providing outstanding

service while never compromising on quality and

safety. We look forward to working with Otis to

deliver this prestigious building,” said Ian Taylor,

project director for Thiess.

“We are proud that Otis is a part of a project

recognised for environmental leadership in

design and construction,” Said Otis President

Ari Bousbib

LANDMARK ‘GREEN’ TOWER OTIS’ GREEN ELEVATORS

The residential developments will use Otis’ Sky lifts,

which incorporate gearless permanent magnet mo-

tors that use half the energy of geared machines and

require no lubrication, making them more efficient

and cleaner for the environment.

Otis are to supply and install 106 energy-efficient lifts

at Prince Town and Sunshine Mansion, two luxury resi-

dential developments in China’s booming Liaoning

Province.

Otis will provide its energy-efficient

lifts for Prince Town, a luxury

residential development in Benxi, China

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The Otis Building187 Twyford Abbey RoadLondonNW10 7DGRegistered No. 147366

Tel: (+44) 208 955 3000Fax: (+44) 208 955 3001www.otis.com

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