Johnson Controls, a global company for smart, healthy, and sustainable buildings, announced that its chairman and CEO George Oliver has been invited by U.S. President Joe Biden to participate in the virtual Leaders Summit on Climate. Addressing climate crisis The summit will bring together leaders of the world’s major economies and other vital partners for an urgent and open dialog on ways to strengthen collective efforts to address the climate crisis. President Biden has made tackling climate change a top national priority since taking office and is urging other world leaders to attend the summit to discuss how their governments will help drive the goal of limiting global temperature rise. Roadmap to a low-carbon economy Transitioning to a lower-carbon economy is an opportunity to build back better, as we recover from the COVID-19 pandemic “I am honored to accept President Biden's invitation to join him and other world leaders calling for urgent climate action. It is especially important to establish a roadmap to limiting the rise of global temperatures as we get closer to the COP26 climate conference scheduled for November in Glasgow,” said George Oliver, chairman, and CEO, Johnson Controls. “Transitioning to a lower-carbon economy is an opportunity to build back better, as we recover from the COVID-19 pandemic. Providing clean, sustainable, and energy-efficient solutions creates jobs while building strong, resilient, global economies.” Clean energy economy According to the White House, a major theme of the summit will be the broad economic benefits of climate action, with a strong focus on job creation. This will explore both the economic benefits of green recovery and long-term decarbonization and the importance of ensuring that all communities and workers benefit from the transition to a clean energy economy. Representing Business Roundtable and Johnson Controls, Oliver will address these topics in a session on April 23 as well as the role buildings can play to slash both emissions and costs. Promoting eco-friendly future Business Roundtable is an association of chief executive officers of America’s leading companies. Oliver was named chair of the Business Roundtable Energy & Environment Committee in January 2021. The Committee is dedicated to advancing policies that encourage innovation and support an environmentally and economically sustainable future. Reducing carbon emissions The vast majority of Business Roundtable’s 223 member CEOs have made public commitments to reduce their companies’ greenhouse gas emissions/carbon footprints, are making serious progress, and reporting on it publicly. Nearly half of those commitments are for net-zero carbon emissions by 2050, if not sooner. Business Roundtable members are playing a significant role in driving ambitious climate action and the policy needed to spur low-carbon economic growth. Last September, the organization endorsed the goals of the Paris Agreement and proposed aggressive policies to achieve those goals. Commitment to cut emissions Johnson Controls believes its OpenBlue platform for optimizing building sustainability will be central to fulfilling its goals Johnson Controls' own ambitious emissions reduction targets were recently approved by the Science Based Targets Initiative – an independent organization that assesses corporate sustainability claims. As part of its environmental sustainability commitments, Johnson Controls aims to cut operational emissions by 55 percent and reduce customers’ emissions by 16 percent before 2030. Johnson Controls believes its OpenBlue platform for optimizing building sustainability will be central to fulfilling these goals and ultimately creating an environment for healthy people, healthy places, and a healthy planet. The climate pledge The company also recently joined the Business Ambition for 1.5°C campaign and is a signatory to The Climate Pledge, an initiative of business leaders co-founded by Amazon and Global Optimism. Signatories to the pledge commit to reaching net-zero carbon emissions by 2040 – ten years ahead of the Paris Climate Agreement goal.
Johnson Controls, the pioneer for smart, healthy and sustainable buildings, announces that it has been awarded a $91 million project with the U.S. General Services Administration (GSA) to improve facilities and energy efficiencies of landmark buildings. As part of the National Deep Energy Retrofit (NDER) program, the GSA is upgrading building technologies in the pursuit of net zero energy consumption while achieving energy goals prescribed in various federal Energy Acts. Support systemic management Johnson Controls portfolio of smart building systems provides the physical components for the upgrades as well as OpenBlue software solutions that support systemic management of building operations, providing memory, intelligence and unique identity to spaces. This infusion of physical systems with award-winning artificial intelligence that helps systems learn over time automates changes that drive maximum energy and resource efficiency. Johnson Controls Federal Systems’ team will perform much of the work Buildings receiving facility improvements over the next three years include the Ronald Reagan Building and International Trade Center (RRBITC), the New Executive Office Building (NEOB), the Eisenhower Executive Office Building (EEOB), Jackson Place, the Winder Building and the Civil Service Building. Johnson Controls Federal Systems’ team will perform much of the work associated with the project. Execution of these projects is anticipated to begin on May 1, 2021. Creating healthier places “Sustainability, energy efficiency and working toward the goal of net zero are top of mind for government leaders across the United States. This is reflected in the Biden-Harris Administration’s recent infrastructure bill as well as our nation’s re-joining of the Paris Agreement,” said George Oliver, chairman and CEO at Johnson Controls. “Partnering with the GSA to make these historic buildings more environmentally friendly and energy efficient is an honor and we look forward to upgrading more buildings around the U.S. in the coming years to create healthier places and do our part to support a healthier planet.” Overall project objectives include: Reducing energy and water consumption Improving efficiency of lighting, water and HVAC systems Transforming building automation systems Implementing cost-effective retrofits with paybacks of 25 years or less Completing construction with minimal disruption to tenants A comprehensive and integrated whole-building approach to the various energy conservation measures Achieving energy resilience It is a privilege to work with General Services Administration on infrastructure projects" “We are proud to help the GSA achieve energy resilience in the Nation’s Capital through Johnson Controls legacy of building expertise and our intimate understanding of the agency’s technology and security needs,” said Nate Manning, President of Building Solutions North America at Johnson Controls. “It is a privilege to work with GSA on infrastructure projects that deliver transformational sustainability solutions for iconic landmarks. These buildings are critical locations for the federal government and include parts of the White House Complex and a National Historic Landmark used by the Executive Office of the President including the Office of the Vice President, Office of Management and Budget, and the National Security Council.” Energy conservation measures The NDER program demonstrates GSA’s commitment to driving energy savings beyond that of an ordinary energy savings project without a detrimental effect on occupant comfort and agency mission. GSA’s NDER program is achieving greater than 34 percent energy savings over its portfolio of buildings included in the program. The cornerstone of success in NDER projects is the holistic and interactive consideration of energy conservation measures. The GSA was able to more quickly finalize the contract and award the work to Johnson Controls For the RRBITC and the NEOB projects alone, energy conservation measures are projected to reduce combined energy consumption by 42% and water consumption by 50%. This initiative leveraged the Department of Energy’s Indefinite Delivery/Indefinite Quantity (IDIQ) Energy Savings Performance Contract (ESPC) in conjunction with GSA’s innovative NDER program to achieve transformative infrastructure outcomes. By following an ESPC approach, the GSA was able to more quickly finalize the contract and award the work to Johnson Controls with minimal up-front capital costs or special appropriations from Congress. Accelerated sustainability commitments This approach to contracting simplified finalization of agreements, paving the way for facility improvements to begin and energy savings to be realized as soon as possible. Sustainability is an integral part of Johnson Controls vision and values. Since signing the United Nations Global Compact in 2004, the company has remained fully committed to aligning its operations and strategies with the U.N. Global Compact's Ten Principles. In January 2021 the company announced ambitious and accelerated sustainability commitments. Further, in March, the science-based targets initiative approved Johnson Controls ambitious emissions reduction targets. These commitments not only reflect internal action being taken across the company, but also the way that Johnson Controls works with and supports customers, partners, vendors and supply chain participants.
Johnson Controls, a global provider of smart, healthy and sustainable buildings, announced it has joined The Climate Pledge, a commitment co-founded by Amazon and Global Optimism. Signatories of the Pledge commit to reaching net-zero carbon emissions by 2040, ten years ahead of the goal set out in the United Nations’ Paris Climate Agreement. Johnson Controls is one of 53 organizations that have now signed the Pledge, and the move comes hot on the heels of the company’s announcement of new environmental, social and governance (ESG) commitments, science-based targets, and its own net-zero carbon pledge. The pact will see Johnson Controls partner with other industry leaders to uncover new pathways to meet common environmental and sustainability goals. Paris Agreement’s goal Sustainability is at the heart of our business and fundamental to everything we do as a company" “Sustainability is at the heart of our business and fundamental to everything we do as a company,” said George Oliver, Johnson Controls chairman and CEO. “Climate change is one of the greatest challenges facing the planet today. Our recent announcement to achieve net-zero carbon emissions by 2040 through innovations and technologies such as our OpenBlue platform, further demonstrates our commitment to protect and preserve the environment." "We are looking forward to further enhancing the role we can play by working with Amazon, Global Optimism, and other signatories to reach net-zero carbon a decade before the important Paris Agreement’s goal.” Critical climate challenges The Climate Pledge allows signatories to share access to technologies, best practices, and innovations in supply chain enhancements, and create joint action to address the most critical climate challenges. Specifically, signatories pledge to accelerate the path to net zero by agreeing to regular reporting on greenhouse gas emissions, carbon elimination, and credible offsets. Johnson Controls has a long-standing business relationship with Amazon and has been working with the company since 2008. “As the U.S. takes an important step forward in the fight against climate change by officially rejoining the Paris Agreement this week, I am excited to welcome 20 new companies to The Climate Pledge who want to go even faster,” said Jeff Bezos, Amazon Founder and CEO. Streamline building operations The company is focused on empowering customers streamline building operations “Amazon co-founded The Climate Pledge in 2019 to encourage companies to reach the goals of the Paris Agreement 10 years early, and we’re seeing incredible momentum behind the pledge with 53 companies from 18 industries across 12 countries already joining. Together, we can use our collective scale to help decarbonize the economy and preserve Earth for future generations.” Johnson Controls’ participation in Th e Climate Pledge reinforces its mission to reimagine the performance of buildings to serve people, places, and the planet. As a leader in the buildings space for 135 years, and a pioneer in sustainability, the company is focused on empowering customers and communities to streamline building operations and deliver energy efficiencies that will help them meet their environmental goals. Clean energy solutions Johnson Controls is driving sustainability across its entire value chain by focusing on clean energy solutions, people, partnerships, performance, and governance. It is ranked in the top 12 percent of climate leadership companies globally by CDP and was named one of Corporate Knights’ Global 100 Most Sustainable Companies.
Johnson Controls, the front-runner for smart, healthy, and sustainable buildings, announced new Environmental, Social, and Governance (ESG) commitments, science-based targets as well as a net zero carbon pledge to support a healthy, more sustainable planet over the next two decades. The company’s and customers’ emissions reduction will be driven by Johnson Controls’ OpenBlue technologies and innovations which leverage big data and artificial intelligence to optimize buildings sustainability. “Sustainability is at the heart of our business and fundamental to everything that we do as a company,” said George Oliver, Chairman and CEO, Johnson Controls. “Today’s announcement reinforces our continued commitment to developing best in class climate solutions, and OpenBlue will empower our customers to streamline building operations and uncover energy efficiencies that will help meet their environmental goals. We continue to make sustainability a top priority for the company, our customers, and our suppliers, and have set ambitious goals that will drive significant improvements in carbon emissions.” New ESG commitments New commitments will enable Johnson Controls to deliver quantifiable efforts to reduce carbon emissions The launch of the new commitments will enable Johnson Controls to deliver quantifiable efforts to reduce carbon emissions, drive climate-focused innovation and work closely with customers and suppliers to meet sustainability goals as well as measurable impact against its three key OpenBlue healthy building pillars: healthy people, healthy places and a healthy planet. These commitments are: Environmental Sustainability Commitments: Set science-based targets consistent with the most ambitious 1.5°C Intergovernmental Panel on Climate Change scenario Reduce Johnson Controls’ operational emissions by 55 percent and reduce customers’ emissions by 16 percent before 2030 Achieve net zero carbon emissions before 2040, in line with the United Nations Framework Convention on Climate Change Race to Zero and Business Ambition for 1.5°C criteria Invest 75 percent of new product development R&D in climate-related innovation to develop sustainable products and services Achieve 100 percent renewable electricity usage globally by 2040 Customer and Supply Chain Commitments: Double annual avoided emissions by 2030 through customer use of Johnson Controls OpenBlue digitally enabled products and services Create a supplier sustainability council with cohorts of suppliers, and their tier-one suppliers, and provide suppliers with training on sustainability best practices and OpenBlue digital tools in order to meet ambitious, public sustainability goals Weight sustainability equal to other key metrics in supplier performance evaluations and provide a preference for suppliers with excellent sustainability ratings Social and Governance Sustainability Commitments: Intends to double the representation of women leaders globally and minority leaders in the United States within five years Launch an initiative to educate the next generation of diverse sustainable building industry leaders, in partnership with HBCUs Include sustainability and diversity goals in senior leaders’ performance assessments, which are linked to executive compensation to drive accountability Launch an initiative focused on underserved markets and increase Johnson Controls’ spend with women and minority-owned businesses Positive changes “Our commitments reinforce the urgency to make positive changes that will improve the health of our planet, and we believe we are uniquely positioned to help customers and suppliers achieve their sustainability goals, in addition to our own,” said Katie McGinty, Vice President & Chief Sustainability, Government and Regulatory Affairs Officer at Johnson Controls. “We are excited to step up the role we play and will continue to innovate and uncover new pathways to meet our goals which will contribute to healthier people, healthier places, and a healthier planet.” OpenBlue support Promotes real-time monitoring, benchmarking and analysis of energy consumption and demand powered by AI and machine learning Johnson Controls is committed to supporting its customers’ sustainability and carbon reduction efforts through its OpenBlue platform. The OpenBlue Enterprise Manager can deliver up to 30% energy savings in buildings and a corresponding drop in CO2 emissions. Notably, the platform was recently used to identify over $100,000 in savings after just 30 days for a large customer portfolio. Powered by artificial intelligence and machine learning, the platform facilitates real-time monitoring, benchmarking, and analysis of energy consumption and demand. It also enables customers to produce indoor environmental quality reports to help achieve healthy building and wellness certifications. Education initiative The way in which buildings are designed, managed, and maintained has a significant environmental and social impact on building occupants. As such, Johnson Controls, in partnership with HBCUs, will launch an initiative to develop and implement an educational program that will support the training and education of more than one thousand sustainability champions from HBCUs and selected universities around the world in environmental sustainability, energy equity, healthy building practices and building decarbonization solutions. The company’s nine global OpenBlue Innovation Centers will also provide the students with support in the application of digital tools to improve new and existing buildings. Improving environmental impact As a front-runner in the building's space for 135 years, Johnson Controls has been a pioneer in sustainability and is ranked in the top 12 percent of climate leadership companies globally by CDP and was named one of Corporate Knights’ Global 100 Most Sustainable Companies. Recently George Oliver has been named Chairman of the Business Roundtable Energy and Environment Committee where he is driving policies that preserve the environment and maximize sustainable energy options. Johnson Controls is taking significant steps to drastically improve its environmental impact while empowering customers and future generations to consume less energy, conserve resources, and identify pathways to achieving healthy, net zero carbon communities.
Johnson Controls, a provider of smart, healthy and sustainable buildings, announces results of independent surveys of 800+ building decision makers showing a clear shift to increased investment in healthy building trends and technologies. “At the center of a vision for a healthy world must be healthy buildings, and that means delivering on the most critical elements to serve People, Places and Planet,” said George Oliver, CEO of Johnson Controls. Game-Changing solutions “Our OpenBlue technologies reinvent the building landscape, creating dynamic smart facilities that help businesses meet their sustainability commitments, while delivering healthy places, enriched experiences and cost savings. Johnson Controls leads the industry in translating new building technology capabilities into game-changing solutions that deliver on our focus of People, Places and Planet.” As a pioneer in the category with 135 years of experience, Johnson Controls is ideally positioned with technologies and solutions that accelerate the reinvention of healthy buildings. The surveys confirmed the need is greater than ever, with 90 percent of responding firms having dedicated resources to healthy buildings initiatives. Reducing energy use Johnson Controls OpenBlue technologies deliver a unique, game-changing capability to solve for healthy places" “Building owners are struggling to balance urgent and conflicting priorities between employee health and wellness with critically needed cost savings, increased revenue and sustainability targets,” said Michael Ellis, executive vice president and chief customer & digital officer at Johnson Controls. “Johnson Controls is best positioned to help businesses meet those sustainability commitments while delivering on our customers’ return on investment,” Ellis said. The 2020 pandemic showed that few customers were able to reduce building operating costs despite lower occupancy, highlighting the need for technologies to deliver flexibility. “Energy use should be dramatically lower when occupancy is low, but surprisingly less than one in ten building operators were able to reduce energy use more than 20 percent,” Ellis said. “At a time when companies are aggressively pursuing energy and cost savings, customers need and want solutions that help them do better, while increasing the health profile of those buildings. Johnson Controls OpenBlue technologies deliver a unique, game-changing capability to solve for healthy places, while simultaneously serving sustainability goals.” Specific investment priorities The survey of facilities operators showed a range of specific investment priorities to meet goals for Healthy People, Healthy Places and a Healthy Planet: Healthy People - Businesses are increasingly committed to employee health and wellness as a driver of high performing teams. The studies show an increase in investments by organizations toward wellness, clean air and peace of mind. 80 percent of respondents stated that protecting the health and safety of building occupants during the COVID pandemic and afterward is very or extremely important. New factors are being included in this mix such as temperature control, disinfection, ventilation and air filtration which all require well maintained systems and equipment, enhanced through intelligent sensors and control software. The realities of the COVID pandemic have increased the potential benefit of these technologies and for contactless access and contact tracing. These capabilities can help increase overall building security through enhanced tracking of building guest and occupant access, flow and location, while maintaining trust. Johnson Controls delivers solutions for all of these needs and in support of broader wellness for people in shared spaces. Flexible facility monitoring Finding cost savings and making fast and informed decisions is a critical part of facility operations Healthy Places - Finding cost savings and making fast and informed decisions, supported by data, is a critical part of facility operations. In the Johnson Controls independent studies, 80 percent of facility executives stated that increasing flexibility to quickly respond to emergencies is a top driver for investment in technologies such as flexible facility monitoring and healthy air strategies. The spaces in which people work, shop, entertain and live become more inviting, more efficient and less expensive to operate over time. Space optimization, capital planning and increasing the uptime and lifetime of assets all support operational performance and lead to cost savings & increased revenue opportunities for building operators. Johnson Controls OpenBlue, a complete suite of connected solutions and services, leverages digital integration to optimize the performance of buildings and assets. Smart building technology Healthy Planet - Improvements in energy efficiency, renewable energy and smart building technology are becoming more critical each year. In the studies, 76 percent of facility executives stated that energy cost savings are a top driver for investment. These investments also influence corporate sustainability rankings, an important metric for attracting and retaining investors, employees and customers. Buildings are responsible for about 40 percent of the planet’s total energy consumption Buildings are responsible for about 40 percent of the planet’s total energy consumption and 36 percent of greenhouse gas emissions from energy use. But only 1 percent of buildings undergo energy efficient renovation every year. Effective action is crucial in aligning to increased regulation, decreasing energy consumption and increasing sustainability. For the health of the planet, the studies revealed that 57 percent of organizations plan to achieve net zero carbon or positive energy status in at least one facility in the next ten years. Energy-Savings performance Through ongoing efforts to create more healthy buildings, Johnson Controls has implemented more than 3,000 energy-savings performance contracting projects in North America alone. The result has been reductions of more than 29 million metric tons of carbon emissions from customer facilities and savings of $6B in energy and operating costs driven by a comprehensive suite of product and technology solutions. In fiscal year 2019 almost half of Johnson Controls revenue came from products and services that reduce energy use and improve sustainability. Johnson Controls helps building owners and occupants make efficient, productive decisions in support of healthy people, healthy places and a healthy planet.
Johnson Controls, a global provider of smart and sustainable buildings, is launching OpenBlue - a complete suite of connected solutions and services that combine the Company’s 135 years of building expertise with cutting-edge technology. This open digital platform, when integrated with Johnson Controls core building systems and enhanced by Fortune 100 technology partners, will make shared spaces safer, more agile and more sustainable. Johnson Controls OpenBlue is the culmination of years of research and development by the Company’s industry renowned engineers and data scientists around the globe, to create the “blueprint for the future” to guide smart, sustainable buildings. The new suite of connected solutions enables previously unimaginable occupant experiences, respectful safety and security, and impactful sustainability, driven by cutting-edge connected technology. Artificial intelligence Connectivity is critical to achieve this goal: building systems must work together and communicate to be effective. OpenBlue was designed with agility, flexibility and scalability in mind, to enable buildings to become dynamic spaces. In leveraging the OpenBlue platform, customers will be able to manage operations more systemically, delivering buildings that have memory, intelligence and unique identity. The platform infuses the OpenBlue suite of solutions and services with award-winning artificial intelligence (AI), combining data from both inside and outside of buildings. Safety and sustainability The launch of OpenBlue reflects how we think buildings are evolving from inflexible assets to dynamic resources" “How we interact with our environments and how buildings and shared spaces are managed for safety and sustainability is top of mind everywhere, and now more than ever we recognize how complex these systems are. Johnson Controls has been making buildings efficient and safe for 135 years, and this year, our obligation to deliver comprehensive, best in class solutions to our customers has never been more important,” said George Oliver, Chairman and CEO, Johnson Controls. “The launch of OpenBlue reflects how we think buildings are evolving from inflexible assets to dynamic resources. As a result, this is a critical element of our business strategy, enabling us to lead customers around the world to the solutions and services required to transform their spaces for the future.” Indoor air quality By combining traditionally separate systems, OpenBlue will enable the connection of every part of a building to create new possibilities for smarter, more efficient and sustainable spaces. OpenBlue customers will be able to: Respond with dynamic flexibility: OpenBlue will enable buildings to switch into different modes to address various critical situations. Modes can include management of building access, air flow, elevator movement, door locks, lighting, and open collaboration, as well as other environmental and safety settings. Deploy COVID-19 solutions: OpenBlue connects Johnson Controls products, technology and services to help customers get back to work as safely and efficiently as possible. These solutions and services include contact tracing, social distance monitoring, thermal cameras, clean air, touchless environments, compliance and reporting management, energy optimization, advanced safety monitoring and more. Select from tiered services for their needs: OpenBlue will contain a suite of tiered, AI-infused service solutions delivering advanced capabilities such as remote diagnostics, predictive maintenance, advanced risk assessments, compliance monitoring and more. Security at the center of the solutions: OpenBlue was designed with safety at its core and will enable customers to access secure by design solutions. Each of the OpenBlue offerings are developed with robust design protocols for security and privacy process. Increase energy savings and improve indoor air quality (IAQ): By connecting HVAC equipment with new data and AI, users of the platform can expect 20-60 percent cost savings by optimising the performance of the full HVAC system across energy costs and IAQ parameters. Traditional operational technology Johnson Controls OpenBlue platform brings together traditional operational technology, existing IT systems and cloud applications infused with AI and cutting-edge technology such as digital twins, enabling insight, integration and collaboration. OpenBlue will enable operating technologies to seamlessly communicate and integrate across a broad range of systems. “Connectivity is the key to making buildings work harder for us,” said Mike Ellis, Executive Vice President, Chief Customer and Digital Officer, Johnson Controls. Unique software capabilities Open refers to an optimistic future and the platform’s open architecture to enable products to work with various solutions" “This new suite of solutions will enable previously unimaginable outcomes for our customers by connecting buildings to unique software capabilities, providing insight to deliver high customer value. We are partnering with a number of leading technology companies and thought leaders in various sectors to roll-out tailored solutions in the coming months.” “The launch of OpenBlue is a radical approach to dynamic spaces,” said Phil Clement, Vice President and Chief Marketing Officer, Johnson Controls. “The brand identity was created with a number of factors in mind: Open refers to an optimistic future and the platform’s open architecture to enable products to work with various solutions. The color blue is core to Johnson Controls branding for the past 135 years and gives a nod to our strong heritage in the buildings space.” Open data platforms OpenBlue technology experts will lead proprietary ‘OpenBlue - Blueprint of the Future’ customer workshops, thought leadership webinars and insight sessions to help customers reimagine the possibilities of built environments and map out capabilities for spaces and places to power a unique customer mission. Johnson Controls partners with global Fortune 100 companies to bring together leading expertise with open data platforms, leading software applications and AI, core building systems and smart edge devices. The new technology ecosystem delivers new vision, while reimagining the future of workplaces, including hospitals, schools, stadiums, cities and more.
The Security Industry Association (SIA) announces the 2019 keynote and featured speakers for Securing New Ground (SNG), the security industry’s annual executive conference taking place at the Grand Hyatt New York in Manhattan October 29-30. SNG 2019 will feature keynote remarks from Dr. Steven T. Hunt, chief expert for work and technology at SAP; George Oliver, chairman and CEO of Johnson Controls; and Gary Shapiro, president and CEO of the Consumer Technology Association (CTA). Significant security risks and threats SNG gathers the brightest minds in the security industry and offers a carefully curated program" Additionally, the 2019 conference will include featured presentations from Steve Jones, CEO of Allied Universal, and Brian Tuskan, senior director and chief security officer (CSO) at Microsoft Global Security; and a panel of CSOs and senior security executives from major industries and public safety highlighting significant security risks and threats and how executives mitigate them. “Each year, SNG gathers the brightest minds in the security industry and offers a carefully curated program that inspires these leaders about the potential of the global security industry,” said SIA CEO Don Erickson. “We are thrilled that these top security luminaries from some of the nation’s leading companies will be joining us at SNG 2019 and look forward to diving deep into the most critical industry trends.” Innovative workforce management methods In the conference’s opening keynote presentation, The Human Side of Security, Hunt will explore the impact of integrating security methods into workforce management systems. This session will examine the interaction between security risks, employee psychology, workforce management and information technology and illustrate how physical and information security risks can be mitigated through the use of innovative workforce management methods and technologies. Additionally, attendees will enjoy a keynote-style executive interview featuring Oliver and hosted by SIA Chairman Scott Schafer. This conversation will highlight major industry trends and market drivers and share insights into how one of the security solutions firms — delivering both security technology products and security integration services — is navigating evolutions in technology, business models and customer needs. Managing corporate risk Jones will explore how the business of security is evolving during the session No Off SeasonIn the presentation Consumer Trends Destined to Shape the World, Shapiro will showcase what trends in innovation and consumer preferences are poised to shape the globe and your business. Shapiro is president and CEO of the CTA, the U.S. trade association representing more than 2,200 consumer technology companies and which owns and produces the CES show. In an interview-style session format, Jones will explore how the business of security is evolving during the session No Off Season: Managing Corporate Risk in an Era of Uncertainty. Jones – who, in addition to his role at Allied Universal, authored the book No Off Season – will share insights into what corporate leaders are seeking from security teams and how he has applied leadership lessons to grow his firm while remaining focused on the ultimate goal: managing his clients’ risk and protecting their reputations. Providing end-To-End enterprise security In the session Defining the Future of Security, Tuskan will share his vision on technology, strategy and where the security industry is headed. As CSO for one of technology firms and with a global footprint, Tuskan has a view of security that serves as not only a vision, but also a great example of how strategy and technology can work together. SNG attendees will enjoy Expecting the Unexpected: Security Leaders Speak!, a dynamic panel discussion Tuskan will also discuss the importance of having a strong relationship with the chief information security officer in providing end-to-end enterprise security. Additionally, SNG attendees will enjoy Expecting the Unexpected: Security Leaders Speak!, a dynamic panel discussion featuring Karen Frank, director of global security at Pratt & Whitney; Brad Hegrat, security principal director at Accenture; Andrea Schultz, director of strategic security programs and policy at the National Football League; Trisha Stein, director of administrative operations at the Detroit Police Department; and moderator Pierre Trapanese, CEO of Northland Controls. Small business security These CSOs and senior security executives from major industries and public safety will share perspectives on the significant security risks and threats in their sectors and how they’re mitigating those concerns while keeping an eye on future risks. Other highlights of SNG 2019 will include discussions on the future of consumer and small business security, what politics and policy mean for security businesses, investment insights for the security industry and managing corporate risk; topic-focused thought leadership roundtables; and a lively networking reception. SNG 2019 will be held at the Grand Hyatt New York, and attendees will be offered a special discounted rate at the hotel; the room block will close on Friday, October 11.
Johnson Controls and Tyco will function independently up till the close of merger around Oct. 1, 2016 Johnson Controls and Tyco International has announced the senior executive team that will lead the combined company following the close of their planned merger, which is expected on or around Oct. 1, 2016. New Roles As previously announced, at the effective time of the merger, Johnson Controls Chairman and Chief Executive Officer Alex Molinaroli will be appointed to the same role for the combined company. Tyco Chief Executive Officer George Oliver will serve as President and Chief Operating Officer, with responsibility for the operating businesses and leading the integration, and will become a director on the new company's board. Mr. Molinaroli will serve as Chairman and Chief Executive Officer for 18 months after the closing. At that time, Mr. Oliver will become Chief Executive Officer and Mr. Molinaroli will become Executive Chair for one year, after which Mr. Oliver will become Chairman and Chief Executive Officer. "We are pleased to reach this major milestone on our journey to bring two great companies together to create a global leader in building products and technology, integrated solutions and energy storage," said Mr. Molinaroli. "This team of talented executives will ensure the combined company continues to thrive, grow and create unique value for our customers and shareholders. We are looking forward to bringing our complementary capabilities together to turn the possibilities for smart buildings and urban environments into reality around the world." Corporate Executive Officers "We are looking forward tobringing our complementarycapabilities together to turnthe possibilities for smartbuildings and urban environmentsinto reality around the world" In addition to Mr. Oliver, upon completion of the merger the following enterprise leaders will report to Mr. Molinaroli: Grady Crosby will serve as Vice President, Public Affairs & Chief Diversity Officer – currently holds the same role with Johnson Controls Simon Davis will serve as Vice President & Chief Human Resources Officer – currently holds the same role with Johnson Controls Kim Metcalf-Kupres will serve as Vice President & Chief Marketing Officer – currently holds the same role with Johnson Controls Judy Reinsdorf will serve as Executive Vice President & general counsel – currently holds the same role with Tyco John Repko will serve as Vice President & Chief Information Officer – currently Chief Information Officer & Enterprise Transformation Leader with Tyco Brian Stief will serve as Executive Vice President & Chief Financial Officer – currently holds the same role with Johnson Controls Jeff Williams will serve as Vice President, Operations & Engineering – currently holds the same role with Johnson Controls Business Leaders Upon completion of the merger, the following business leaders will report to Mr. Oliver: Bill Jackson, Executive Vice President & President, Building Efficiency Trent Nevill, Vice President & President, Asia Pacific Colleen Repplier, President, Fire Protection Products Girish Rishi, Executive Vice President, North America Integrated Solutions & Services and Tyco Retail Solutions Mike Ryan, President, Security Products and Life Safety Products Johan Pfeiffer, Executive Vice President, Rest of World Integrated Solutions & Services Joe Walicki, Vice President & President, Power Solutions Until the close of the transaction, Johnson Controls and Tyco will continue to operate independently under their current leadership structures.
As industry consolidation continues, we can expect a number of mergers and acquisitions (M&As) in the next several months, but the first M&A story of 2016 is a whopper. This week, Johnson Controls and Tyco have announced their merger into one company with annual revenue of $32 billion. The new Johnson Controls will be almost a direct reflection of one of the industry’s biggest trends – the move toward technology convergence and smart buildings. Johnson Controls has previously had a small presence in the physical security market, but their products have mostly centred around building controls, HVAC and energy storage technology. For its part, Tyco’s focus on video, access control and alarm systems has expanded to consider those systems in the context of broader building systems. The trend toward convergence in the building market is the common ground for these companies, and a major driver in their decision to merge. The combined company, Johnson Controls plc, will provide products, installation and service capabilities across controls, fire, security, HVAC and power solutions. Combined Resources And Territories For Strong ‘Global Footprints’ “Tyco no longer sees its market as limited to the fire and security industry when developing new products and services,” says George Oliver, Tyco CEO. “In the long term, this transaction allows us to more completely address the total customer need and to combine Johnson Controls’ strong product portfolio with our resources, devices and in the field to create solutions to better solve customers’ problems.” He says both companies offer “robust innovation pipelines and extensive global footprints.” Those global footprints are also complementary. For example, Tyco is very strong in Europe, while Johnson Controls has more presence in Asia; the combined company will therefore have both areas covered, and both are strong in the United States. Both companies have also worked to standardize and simplify their products, which will promote easier integration to combine their capabilities. The combined company will be headquartered at Tyco’s current global headquarters in Cork, Ireland. U.S. headquarters will be at Johnson Controls’ current location in Milwaukee. The merger is expected to be complete by the end of fiscal 2016. (In 2017, the combined companies will “spin off” a Johnson Controls division that manufactures automotive seats.) Click here for larger imageThe combined strengths and specialized areas of Johnson Controls and Tyco willallow them to deliver integrated systems for smart buildings in the future Smart Buildings & Technology Convergence Trends “Convergence of fire and security with building controls and HVAC creates a much greater value proposition,” Oliver notes. “We can capitalize on the trend toward smart buildings.” The connectivity trend includes homes, buildings and cities. Markets include large institutions, commercial buildings, retail, industrial, small business and residential. “There is true convergence of technology taking place,” he adds. “When you look at the total customer problem, and the ability to create new business models to support customers, create value and accelerate growth, there isn’t a better combination [than Tyco and Johnson Controls.] The foundation of the deal is a great strategic fit, and being able to capitalize on the growth opportunity we see going forward.” The companies’ product offerings reflect how both companies have been working toward smarter buildings. Johnson Controls’ Metasys intelligent Building Automation System connects HVAC, lighting, security and protection systems, enabling them to communicate on a single platform to enable smarter decision-making. Tyco has developed the TycoOn cloud-based system to collect data from various sensors and to configure the data and apply analytics. Integrators Going Beyond Physical Security In addition to lowering costs, combining the two companies’ technologies will provide more opportunities from “Big Data” and the “Internet of Things” – including the ability to monitor equipment and analyze trends for customers. Beyond positioning the new company well in the building market, the merger will provide $500 million in “cost synergies,” not to mention $150 million in tax savings, according to the companies. Many end users now view their physical security and fire systems in the broader environment of their building systems, and even integrator/installers are expanding their view beyond a narrow focus on video cameras and access control. Smart buildings are a big trend, and an opportunity that more and more companies will be looking to capitalize on. The new Johnson Controls (incorporating what we now know as Tyco) will be well-positioned to succeed in that market. It’s also a new chapter for some of the most well-known brands in the physical security market – such as American Dynamics, Software House, Exacq Technologies and SimplexGrinnell. They’ll be finding their place in the world of smart buildings, too.
Johnson Controls and Tyco announced that they have entered into a definitive merger agreement under which Johnson Controls, a global multi-industrial company, will combine with Tyco, a global fire and security provider, to create the leader in building products and technology, integrated solutions and energy storage. Under the terms of the agreement, which has been unanimously approved by both companies' Boards of Directors, Johnson Controls shareholders will own approximately 56 percent of the equity of the combined company and receive aggregate cash consideration of approximately $3.9 billion. Current Tyco shareholders will own approximately 44 percent of the equity of the combined company. "The proposed combination of Johnson Controls and Tyco represents the next phase of our transformation to become a leading global multi-industrial company," stated Alex Molinaroli, chairman and chief executive officer, Johnson Controls. "With its world-class fire and security businesses, Tyco aligns with and enhances the Johnson Controls buildings platform and further positions all of our businesses for global growth. Through this transaction, we will also expand our ability to further invest globally, develop new innovative solutions for customers and return capital to shareholders." "The combination of Tyco and Johnson Controls is a highly strategic, value-enhancing step that brings together the unique strengths of two great companies to deliver best-in-class building technologies and services to customers around the world," said George R. Oliver, chief executive officer, Tyco. "We believe this transaction will allow us to better capture opportunities created by increased connectivity in homes, buildings and cities. Joining forces with Johnson Controls pairs our leading established businesses with robust innovation pipelines and extensive global footprints to deliver greater value to customers, shareholders and employees of both companies." "With its world-class fire and security businesses, Tyco aligns with and enhances the Johnson Controls buildings platform and further positions all of our businesses for global growth" Under the terms of the proposed transaction, the businesses of Johnson Controls and Tyco will be combined under Tyco International plc, which will be renamed "Johnson Controls plc." The companies expect that shares of the combined company will be listed on the New York Stock Exchange and trade under the "JCI" ticker. Upon the closing of the transaction, the combined company is expected to maintain Tyco's Irish legal domicile and global headquarters in Cork, Ireland. The primary operational headquarters in North America for the combined company will be in Milwaukee, where Johnson Controls has been based. Strategic Rationale - Near-Term Growth And Product Innovation The combined company brings together best-in-class product, technology and service capabilities across controls, fire, security, HVAC, power solutions and energy storage, to serve various end-markets including large institutions, commercial buildings, retail, industrial, small business and residential. The combination of the Tyco and Johnson Controls buildings platforms creates immediate opportunities for near-term growth through cross-selling, complementary branch and channel networks, and expanded global reach for established businesses. The new company will also benefit by combining innovation capabilities and pipelines involving new products, advanced solutions for smart buildings and cities, value-added services driven by advanced data and analytics and connectivity between buildings and energy storage through infrastructure integration. As a result, the new company will be able to better partner with its customers to help improve their overall performance and operations, enhancing the experience for their own customers in areas such as comfort, safety and accessibility. In addition, the combined company will have one of the largest energy storage platforms with capabilities including traditional lead acid as well as advanced lithium ion battery technology serving the global energy storage market. Johnson Controls is in the midst of a strategic transformation to become a top-quartile multi-industrial company with leadership in attractive spaces connected to core growth platforms in buildings and energy storage. This focus has resulted in significant portfolio changes over the past few years including the divestiture of its Automotive Electronics and Interiors and Global Workplace Solutions businesses, as well as the acquisition of Air Distribution Technologies and the formation of Johnson Controls - Hitachi joint venture. The company announced in July 2015 that it is planning to spin off Adient at the beginning of fiscal year 2017. The combined companies, to be known as Johnson Controls plc, will maintainTyco's Irish legal domicile and remain headquarted in Cork, Ireland Tyco has transformed from a diversified holding company to a streamlined operating company with a focused and leading portfolio in fire and security that will complement Johnson Controls' buildings platform. Tyco combines best-in-class products with a world-class installation and service capability delivered across a global network of branches. The company's core strengths include security and fire systems integration, commercial security monitoring, as well as fire, security and life-safety products. Value Creation For Both Companies' Shareholders Pro forma for the transaction and separation of Adient, Johnson Controls is expected to have approximately $32 billion of revenue in fiscal year 2016 and $4.5 billion of EBITDA before synergies. Adient is expected to have approximately $16.6 billion of revenue in fiscal year 2016 and $1.6 billion of EBITDA. In addition, Adient is expected to distribute between $2.5 to $3.5 billion to Johnson Controls in conjunction with the spin-off. The new company expects to deliver at least $500 million in operational synergies over the first three years after closing. These annual cost synergies are expected to be achieved by increasing efficiencies, eliminating redundancies, integrating the global branch networks, and leveraging the combined scale of an over $20 billion buildings business platform. In addition, the transaction is expected to create at least $150 million in annual tax synergies. Johnson Controls shareholders will own approximately 56 percent of the equity of the combined company and receive aggregate cash consideration of approximately $3.9 billion. Tyco shareholders will own approximately 44 percent of the equity of the combined company. The exchange ratio represents a 13 percent premium to Tyco shareholders based on 30-day volume-weighted average prices and an 11 percent premium based on share prices as of the close of market on Jan. 22, 2016, assuming that each share of the combined company has a value equal to one Johnson Controls share. Given their ownership of the combined company, both Tyco and Johnson Controls shareholders will participate in the substantial value-creation opportunities presented by $650 million in synergies, plus incremental upside from revenue growth acceleration. Post-transaction, the combined company expects to maintain a strong investment grade credit rating and continue to pursue a balanced capital allocation program including a strong and growing dividend, consistent return of capital, and value-creating investment. Alex Molinaroli will be the chairmanand CEO of the combined company.George Oliver will serve as presidentand COO and serve as a director onthe new board, with responsibility forthe operating businesses and leadingthe integration Both Johnson Controls and Tyco shareholders will receive shares of Adient (Johnson Controls Automotive Experience) which will be distributed after the merger. The Adient spin-off is expected to occur at the beginning of fiscal 2017. Transaction Details Immediately prior to the merger, Tyco will effect a reverse stock split so that Tyco shareholders will receive a fixed exchange ratio of 0.9550 shares for each of their existing Tyco shares. Johnson Controls shareholders may elect to receive either one share of the combined company for each of their Johnson Controls shares or cash equal to $34.88 per share, which represents Johnson Controls' five-day volume-weighted average share price. Elections by Johnson Controls shareholders are subject to proration such that an aggregate of approximately $3.9 billion cash is paid in the merger. The combination will be tax-free to Tyco shareholders, and taxable to Johnson Controls shareholders. Tyco has secured a committed $4.0 billion bank facility to finance the cash consideration of the transaction. The completion of the transaction, which is expected by the end of fiscal year 2016, is subject to customary closing conditions, including regulatory approvals and approval by both Johnson Controls and Tyco shareholders. Governance And Leadership Following closing of the transaction, the board of directors of the combined company is expected to have 11 directors, consisting of six directors from Johnson Controls and five directors from Tyco. Alex Molinaroli will be the chairman and chief executive officer (CEO) of the combined company. George Oliver will serve as president and chief operating officer and serve as a director on the new board, with responsibility for the operating businesses and leading the integration. Mr. Molinaroli will serve as chairman and CEO for a term of 18 months after the closing. At that time, Mr. Oliver will become CEO and Mr. Molinaroli will become executive chair for one year, after which Mr. Oliver will become chairman and CEO. Centerview Partners is serving as Johnson Controls' lead financial advisor. Barclays is serving as financial advisor for Johnson Controls. Wachtell, Lipton, Rosen & Katz and A&L Goodbody are acting as its legal advisors. Lazard is serving as Tyco's lead financial advisor. Citi is providing the committed financing for the transaction and Goldman Sachs is serving as financial advisor for Tyco. Simpson Thacher & Bartlett and Arthur Cox are acting as its legal advisors. Fiscal Q1 Earnings Update As part of today's announcement, both companies provided preliminary 2016 first fiscal quarter earnings results. Johnson Controls said its adjusted earnings per share for the first fiscal quarter is expected to be $0.82, compared with guidance of $0.80 - $0.83. Tyco's earnings per share before special items is expected to be $0.42 versus guidance of $0.40. Johnson Controls will report earnings on Jan. 28, 2016. Tyco will report on Jan. 29, 2016.
The Global Center of Excellence Network helps minimise risks, preserve profits, automate efficiencies and gain real-time intelligence Tyco recently announced the expansion of its Global Center of Excellence Network, which enables multinational companies to streamline and standardize their fire and security systems around the world. Following the success of its Global Center of Excellence (GCoE) in Birmingham, Alabama, Tyco is opening and expanding facilities in key areas across the globe designed to emulate this model. The first center of the expansion opened in Denver this year, with Santiago, Chile scheduled to open in late November of this year. The company already has a center in Birmingham, UK, and will align this center with the global network. The company plans to open additional facilities over the next two years in Asia and India. Tyco CoEs Develop Detailed Work Plans The Tyco CoEs develop standards, technical specifications and detailed work plans that enable high quality fire and security installations globally, while also providing customers with remote system audit services to verify functionality and compliance with regional and corporate standards. Since its opening in 2010, the company's flagship Birmingham center has grown by almost 300 percent, helping more than 50 Fortune 500 companies streamline and standardize their global integrated fire and security systems. Based on the success and momentum this center generated, Tyco opened its Denver Center of Excellence to support increasing customer demand from their national, regional, and global customers. The new 20,000 square-foot Center of Excellence currently houses 40 employees and is located in Denver, CO. Serving global customers with a single point of contact, the Global Center of Excellence Network helps minimize risks, preserve profits, automate efficiencies and gain real-time intelligence from a scalable platform offering integrated solutions. Delivering Unique Value To Strategic Customers "Our goal is to do more than evolve with industry and technology change; we want to serve as a key player in driving innovation and delivering unique value to our strategic customers," said George Oliver, Tyco's Chief Executive Officer. "Customers who leverage our Global Center of Excellence Network benefit from local talent backed by Tyco's more than 140 years of experience and breadth of technology expertise, freeing them to focus on moving forward with new, differentiated solutions." Each Tyco CoE employs a wide range of talented individuals including certified design engineers, computer-aided design operators, program managers, system engineers and other specialists who design and manage the deployment of global fire and security standards for enterprise-level intrusion security, access control, video management, fire systems and integration. The network's Global Business Management system allows the CoEs around the world to work together seamlessly, sharing talents and workloads across locations to ensure a better overall customer experience. In the last 12 months, the GCoE network has completed nearly 8,000 projects for Tyco's top global, regional, and national customers in more than 85 countries around the world.