Ensuring Corporate Ethics and Sustainability

Johnson Controls takes ethics and integrity seriously. We were recently named a World’s Most Ethical Company and one of the 100 Best Corporate Citizens. Plus, we’re a member of the U.N. Global Compact, which recognizes corporate performance on environmental and social issues. This recognition is due in part to:

• Values First, the Johnson Controls Code of Ethics that guides employee behavior.
• Our Integrity Helpline, which allows employees report any suspected violations.
• A Human Rights and Sustainability Policy that affirms our adherence to global standards.
• Our Slavery & Human Trafficking Policy and Statement that demonstrates our commitment to conducting our business in a manner that respects human rights.
• Our commitment to Diversity and Inclusion
• Our belief in ethical, transparent Corporate Governance

Board of Directors and Board Committees
The Board of Directors oversees the implementation of our mission, vision and values. The Board provides regular oversight of our sustainability and corporate responsibility programs, goals, management, and achievements, including climate, sustainability, employee health and safety and human capital management.

Chairman and CEO, Chief Sustainability Officer, Chief Human Resources Officer and Executive Committee
The authority for day-to-day oversight and management of economic, environmental and social topics is delegated to the Executive Committee, which comprises the senior executives responsible for all our major corporate functions. Our CEO and executive committee members have sustainability- and diversity-linked goals embedded into their performance goals.

Global ESG Leadership Committee (ESG LC)
The Global ESG LC consists of senior leaders across our businesses, functions and regions. It is charged with leading the enterprise across all measures of sustainability, managing and reporting progress, and embedding sustainability in our culture and operations.

Enterprise ESG workstreams
All sustainability and corporate responsibility topics and associated targets, metrics, and strategies into one of six ESG strategy workstreams: climate, product stewardship, sustainable value chain, diversity, equity and inclusion, social impact, and governance. Each workstream is chaired by a Vice President who also sits on and reports to the Global ESG Leadership Committee.

This 2019 assessment helped us to:

• Solicit the views and priorities of both internal and external stakeholders.
• Assess stakeholders’ environmental, social and governance priorities.
• Identify gaps between our actions and stakeholder expectations.
• Prioritize areas for improvement.

We believe that the better we understand our stakeholders, the stronger we’ll be as a company. We regularly consult with these stakeholders via meetings, advisory council forums, correspondence and surveys:

• Employees
• Customers
• Suppliers
• Governments
• Financial investors
• Social investors
• Labor groups
• Non-Governmental organizations
• Industry groups
• Media
• Academia