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U.S. Electrical Equipment and Multi-Industry: Introduction to HVAC

Net Zero/Carbon Neutrality refers to the idea that a system removes the same amount of carbon dioxide from the atmosphere as it emits (i.e., no net carbon dioxide is emitted). Such a system would not contribute to climate change and other environmental/health problems exacerbated by an increase in carbon dioxide.

The construction industry accounts for 40% of total global energy-related carbon emissions and three-quarters of those emissions are attributable to building operations

Since HVAC systems are major consumers of energy in buildings, construction companies look to HVAC companies for energy-efficient (low carbon dioxide emitting) systems to meet the thresholds set forth under the new regulations pertaining to buildings and constructions.

On July 28, 2021, SEC Chair Gary Gensler revealed some important details regarding the potential climate-change disclosure requirements. Companies are expected to disclose not only Scope 1 emissions but also Scope 2 and potentially Scope 3 emissions. SEC is also considering whether to mandate disclosure in Form 10-K and other relevant reporting documents. The full proposal will be submitted for consideration by the end of 2021.

While there are different ways to calculate the ROIC for HVAC systems (or upgrades to the systems), @John Walsh and team examine a revised formula to cover additional variables. Increased emphasis is placed on the intangible benefits an HVAC system brings. The acknowledgement of additional benefits means that there is a faster payback period for HVAC investments than previously recognized.

@John Walsh