How Trane Technologies is Using AI to Power Efficiency Gains

The long-established boundaries of industrial manufacturing are shifting.

For decades, the built environment has relied on heavy-duty equipment such as chillers, boilers and compressors to regulate indoor climates.

But as companies encounter mounting pressure to reduce utility costs and carbon emissions, software is quickly becoming a primary source of industrial value.

In an example of this shift, heating and ventilation specialist Trane Technologies is increasingly moving from a mechanical engineering focus to offering advanced AI and autonomous digital systems.

Data and energy are now key drivers of the global economy.

For multinational businesses, building operations are often a fixed overhead.

Traditional HVAC systems operate on preset cycles and do not adjust to real-time environmental changes leading to significant energy waste.

Using AI to drive sustainability

In response, companies are moving from reactive equipment to predictive and autonomous intelligence.

Integrating AI into climate-related control systems enables ongoing efficiency adjustments rather than a fixed power cycle.

Algorithms can predict changes in building conditions and optimise thermodynamic performance in real time while using less computing power.

When combined with standard automation, autonomous controls can reduce commercial energy use by up to 25% and cut carbon emissions by up to 40%.

This improvement in performance is changing growth and development. Industrial organisations are moving beyond hardware research to pursue strategic mergers and acquisitions in the digital sector.

“We are scaling sustainability by combining climate technology, digital intelligence and engineering excellence to help our customers reduce emissions, lower operating costs and strengthen resilience,” says Dave Regnery, Chair and CEO of Trane Technologies.

“Our consistently strong financial and sustainability performance reflects the power of our purpose-driven strategy to accelerate customer innovation, drive growth and create long-term value as we challenge what’s possible for a sustainable world.”

On track to a sustainable future

In its latest sustainability report, Trane Technologies reported it had reached the halfway mark of its 2030 climate roadmap.

At the core of its decarbonisation strategy, the manufacturer has achieved a 59% absolute reduction in operational Scope 1 and Scope 2 GHG emissions against its 2019 baseline, ahead of its near-term target of 50% by 2030.

This was driven by a major refrigerant changeover initiative across five North American facilities, which yielded a 26% reduction in Scope 1 emissions between 2024 and 2025 alone, the company says.

The company has also decoupled its power requirements from grid-based carbon intensity.

By expanding its portfolio to 15 on-site solar facilities and sourcing virtual power purchase agreements, the company covered 84% of its total consumption with renewable electricity during 2025.

Energy growth and efficiency focused

However, driven by an expansion in manufacturing that saw revenue rise from US$13.1bn in 2019 to US$21.3bn in 2025, absolute energy consumption across operations increased by 1.7% over the baseline period.

To offset this, Trane achieved a 38% improvement in total energy intensity since 2019 and formed a new Energy Efficiency Improvement and Electrification team internally.

Beyond its operational footprint, the group is examining how it sources materials to eliminate embodied carbon across its upstream supply chains.

Primary production materials used across its products averaged 44% recycled content in 2025.

The business has adjusted its metrics to address high-emission commodities. Around 28% of its steel procurement met strict lower-emission parameters and partnerships with suppliers resulted in specialised aluminium alloys which have over 80% recycled content.

Trane also reported a 31% growth in remanufacturing revenue to US$282m while 80% of operating sites have achieved zero waste-to-landfill.