Materiality & Stakeholder Engagement

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Materiality Assessment

In 2020, Carrier completed our first materiality assessment to inform our ESG management and reporting. We used the GRI steps of identification, prioritization and validation to define the ESG topics most significant to Carrier and our stakeholders based on impacts, risks and opportunities. We identified relevant ESG topics through internal and external stakeholder interviews and research.

The Carrier ESG Steering Committee validated the results, which were endorsed by the Carrier Executive Leadership Team and Carrier’s Board of Directors through its Governance Committee. Carrier Reporting Topics*:

• Climate Change • Community Engagement & Investment • Corporate Governance • Cybersecurity & Data Privacy • Diversity & Inclusion • Environmental Responsibility • Ethics & Compliance • Human & Labor Rights • Innovation & Efficiency • Occupational Health & Safety • Product Safety & Quality • Stakeholder Engagement • Talent Attraction & Retention

• Tax Transparency

Stakeholder Engagement We are committed to ongoing efforts to engage with, understand and respond to the expectations, needs and priorities of our stakeholders – those groups who impact or are impacted by our operations. Carrier regularly engages a wide range of stakeholders critical to our business.

HOW WE ENGAGE

Employees

Customers

Investors

Suppliers

Government

Communities

We encourage feedback from our employees through regular employee surveys, town hall meetings, development conversations, online employee portals and through confidential channels where employees can raise sensitive issues, seek guidance and report misconduct.

We seek customer input through continuous dialogue, product and service training programs, dealer and distributor councils and a variety of customer surveys. We aim to use that information to improve our products, services and operations.

We believe in transparent and open communications with investors. As a public company we will regularly engage with our shareowners on our financial performance, strategy, and ESG performance and practices.

We actively collaborate with our network of suppliers. We are members of several industry organizations, attend national and local conferences and encourage suppliers to participate in our Supplier Excellence program to improve their operating performance and growth. Our expectations are aligned through our Supplier Code of Conduct.

Our government relations initiatives educate and inform officials on a range of public policy issues important to our businesses, and as a new stand-alone company, we intend to annually disclose federal and state lobbying activities and expenditures once we have information to report as a standalone company..

We support more than 250 civic, cultural, economic and social welfare organizations around the world, focused in the areas of STEM education, sustainability, safety and security, hunger and food waste, diversity and inclusion, and disaster relief.

INNOVATING FOR A SUSTAINABLE WORLD

Our vision is to create solutions that matter for people and our planet.