CASE STUDY 3 Johnson Controls – A business case rooted in customer demands to save energy and costs, while reducing emissions BUSINESS CASE Johnson Controls offers high-efficiency heat pumps to meet growing customer demands for cost reduction, energy efficiency and lower carbon emissions – particularly to meet the economic and sustainability needs of hospitals, public sector buildings and industrial facilities. For example, a Spanish food company used the company’s heat pumps to achieve ~€1.5 million in annual energy savings, while reducing CO2 emissions by ~2,000 tonnes. Another customer, a Danish hospital, cut emissions by ~80-90% and reduced energy costs by ~80%. Such success stories have strengthened Johnson Controls’ competitiveness and driven adoption of its green technologies. Sustainability is not a trade-off. It’s the strategy that future-proofs our customers. Katie McGinty, Vice President; Chief Sustainability & External Relations Officer, Johnson Controls Sources: Executive leadership interview with Johnson Controls. Operating model: A new model, built for rapid scale Building any growth business requires a focused culture and an agile, accountability-driven team. Many successful companies rely on lean, integrated teams that unite technical, commercial and sustainability expertise, upskilling existing talent and coordinating tightly across functions to scale up quickly without added bureaucracy. Others, however, establish distinct growth units with dedicated capabilities, governance and financing to give new green businesses the focus and flexibility they need. The key is to be clear on which model fits the company’s strategy and avoid getting stuck between the two. CASE STUDY 4 Xylem – Strengthening culture and teams to foster green growth CULTURE & TEAMS Xylem’s senior leadership team realized that to achieve the impact envisioned in the company’s stated purpose – “empowering customers and communities to build a more water-secure world” – they could not just rely on technology. They needed to develop a high-impact culture built around three core behaviours: innovation, empowerment and accountability. By anchoring this culture within its operating model, the company ensured organizational alignment among its 23,000 global workers. This in turn enabled the company to transform its performance and accelerate growth in high-impact areas, such as digital solutions for water management, advanced treatment systems and customer-centric water services. Sources: Executive leadership interview with Xylem. A sustainable supply chain becomes a critical enabler of scale as demand accelerates. Successful leaders secure reliable access to critical materials and inputs by diversifying across regions and, where needed, integrating further along the value chain to reduce exposure to bottlenecks and price shocks. Embedding sustainability early helps manage supply risk, meet tightening regulatory standards and protect margins as demand grows.Finally, leading CEOs leverage tech (including AI) and existing assets as multipliers for scale. They automate core processes to cut cost and error, use analytics to anticipate demand and manage resources, and deploy digital tools to track performance and emissions. For capex intensive sectors, in particular, leveraging and upgrading existing assets can help companies expand capacity with lower additional costs and complexity. Already a Multi-Trillion-Dollar Market: CEO Guide to Growth in the Green Economy 33

Already a Multi-Trillion-Dollar Market 2025