Otis ESG Report 2022

2022 ESG Report
Every move we make is focused

on the future for a stronger,
more sustainable tomorrow.
Contents
3 ESG AT OTIS
13 HEALTH & SAFETY
19 ENVIRONMENT & IMPACT
28 PEOPLE & COMMUNITIES
37 GOVERNANCE & ACCOUNTABILITY
50 APPENDIX
2022 ESG REPORT 2

ESG AT OTIS HEALTH & SAFETY ENVIRONMENT & IMPACT PEOPLE & COMMUNITIES GOVERNANCE & ACCOUNTABILITY APPENDIX
About Otis
Otis is the world’s leading elevator and escalator manufacturing, installation
and service company, having pioneered the elevator business 170 years ago.
Today, with approximately 69,000 Otis colleagues, we move 2 billion people
Attractive
a day in more than 200 countries and territories around the world. Otis has business NEW
global scale and local focus, with over 1,400 branches and offices and a direct
physical presence in approximately 80 countries. We maintain approximately
model EQUIPMENT
2.2 million customer units globally – the world’s largest portfolio.

Our business is strategically linked to the megatrend of urbanization, a
result of global economic growth and expansion of the middle class. These
advancements bring new opportunities and challenges that require new Servi
lty
solutions. As customer demands increase, we meet these challenges across Loya ce
Co
er nv
a wide range of verticals and end markets, and leverage technology for om
safer, more sustainable, more reliable rides, and improved customer service
er
st
Cu
sio
and passenger experiences. We focus on product innovation to deliver
n
projects that serve buildings from just a few stories high to the tallest, most
recognizable residential and commercial buildings and transportation hubs in
the world. All told, we help build and transform modern cities and improve MODERNIZATION MAINTENANCE
& REPAIR
lives in the communities where we live and work.
Our business model focuses on New Equipment share gain and Service
portfolio growth. New Equipment makes vertical transportation within
ion
On
buildings and infrastructure possible, while Service ensures that equipment
nt
&
ff
runs safely and reliably. The modernization of elevators installed decades
Re
te
O
Po •
rtf o
ago offers new efficiency and energy-saving opportunities for our customers
li o • R e c a p t u re s
and a safer environment for our colleagues, subcontractors and passengers.
Innovations in the elevators and escalators we produce and the way we
do business, including the development of digital technologies, drive more
efficient and safer operations and improve our environmental impact.
2022 ESG REPORT 3

A message from our CEO

Judy Marks, Chair, Chief Executive Officer and President
Our vision, as industry leader, is to give people freedom to connect and thrive in a taller, Among the updates in this report:
faster, smarter world. We embrace the responsibility to honor the generations that
• ealth & Safety: We remain committed to achieving a zero-harm workplace and
H
came before us, to deliver for the generations of today and to sponsor the generations
launched Field Standard Practices to identify, track and rectify areas of high-risk
that come after us. It is about doing the right thing for our planet, customers, colleagues,
work activities. If an incident does occur, we perform extensive root-cause analyses
shareholders, and the communities where we live and work.
to make improvements and help prevent recurrence.
Environmental, Social and Governance (ESG) is part of our culture, integral to setting
• nvironment & Impact: In a first for the elevator industry, our Florence, South Carolina,
E
our vision in motion and embedded in our long-term strategy. It is no coincidence that
U.S., facility achieved gold-level TRUE certification for its zero-waste efforts. And we
the principles of ESG align well with the foundation of our business: our Absolutes of
built a new factory in San Sebastian, Spain, that used certain sustainable construction
Safety, Ethics and Quality.
materials and is powered by electricity generated from 100% renewable resources.
Safety was core to our beginnings 170 years ago and remains a top priority in our work
• eople & Communities: We launched a set of programs to support us in accelerating
P
today – for colleagues who design, install or service our elevators and escalators and
development of diverse talent, female leadership and our culture of inclusion. These
for the 2 billion passengers who ride on them daily. Our reputation is paramount, and
programs are helping us ensure that our workforce reflects the communities we
we uphold the highest standards of Ethics through strong governance and a spirit of
serve. We are on a responsible and sustainable path to reach gender parity in our
integrity – always doing business the right way. We believe that all of us “own” Quality.
executive ranks by 2030, having increased female executive representation from
We deliver quality results at every turn across our production, installation, and maintenance
36% in 2021 to 39.2% in 2022.
and repair processes as well as sales, marketing and financial reporting.
• overnance & Accountability: Members of our Board of Directors are deeply
G
Our business success requires continuous growth and improvement, and ESG is an area
experienced senior executives across sectors that include asset management,
where we and our stakeholders rightly expect progress. Last year, in our inaugural ESG
automotive, consumer products, manufacturing and professional services. We seek
report as an independent company, we made clear our dedication to the four pillars that
to enhance Board diversity in other dimensions as well. With the addition of our
are fundamental to our ESG strategy: Health & Safety, Environment & Impact, People
newest Board member in October 2022, six of our 10 members are women,
& Communities, and Governance & Accountability. We hold ourselves accountable
racially/ethnically diverse or both.
with the added step of tying executive short-term incentive compensation to ESG goal
performance – specifically, achieving gender parity among executives and managing As we continuously work to advance our strategy, culture and ESG goals, we are doing
our environmental footprint to reduce greenhouse gas emissions. ESG advancement so from a position of strength. I am confident that in this report you, our stakeholders,
is embedded in our success through strong financial results and the impact we make will see tangible progress toward limiting carbon emissions, reducing and reusing
in the communities where we do business. energy, promoting equity, inclusivity and diversity, and providing opportunities for all.
We look forward to continuing our ESG journey alongside you.
In this report, we are pleased to share initiatives and progress toward our 13 ESG
goals and our commitment to foster a more sustainable, inclusive world. We aim to
transparently provide updates toward our goals while celebrating important milestones. With gratitude,
Judy Marks
2022 ESG REPORT 4
2022 BY THE NUMBERS*

About our business $2.1B
adjusted
In 2022, we built on our success, focusing on our long-term business strategy, operating profit
agile leadership and an unwavering commitment to The Otis Absolutes of
Safety, Ethics and Quality. We delivered solid financial performance and $13.6B
continued to support the evolving needs of our customers and passengers as
we foster an environment where innovation and continuous improvement are
rewarded and all Otis colleagues feel safe, welcomed and heard.
adjusted net sales
$3.17
adjusted EPS
2.5%
organic sales growth
$1.45B
free cash flow
adjusted net sales adjusted operating profit
43% 17%
6.6%
New Equipment
adjusted margin
57% 83% 23.5%

New Equipment
Service
Service adjusted margin
~2.2M
units under
~69K
colleagues
~41K
field
maintenance professionals
2022 ESG REPORT *Full year 2022 results, see pages 81-82 for additional information regarding non-GAAP financial measures. 5
About our business (continued)

NEW EQUIPMENT
We design, manufacture, sell and install a wide range of passenger and The Gen360 platform also offers additional safety features for passengers and
freight elevators, as well as escalators and moving walkways, for residential, field professionals who maintain the elevator. For taller, high-rise buildings,
commercial and infrastructure projects. In 2022, our New Equipment sales our most advanced product is the SkyRise elevator solution. The SkyRise
in China and the Americas, each represented approximately one-third of our platform combines cutting-edge technologies and precision engineering to
New Equipment net sales, while China represented over half of our global deliver solutions for residential, commercial and mixed-use skyscrapers. In
New Equipment unit volume. addition to elevator solutions, we offer escalators and moving walkways.
We have developed a range of elevator and escalator solutions to meet the We typically sell New Equipment products directly to our customers through
needs and objectives of our diverse customers. The Gen2 family of elevators our New Equipment sales force. New Equipment customers include real
is our principal low- and mid-rise elevator solution. Since its launch in estate developers and general contractors who develop and/or design buildings
2000, Gen2 has been our best-selling elevator platform, with more than 1 million for residential, commercial, retail or mixed-use purposes. We also sell New
units sold globally. In 2021, we introduced Gen2 successors: the Gen3 and Equipment products to government agencies to support infrastructure
Gen360 digital elevator platforms. These platforms enhance Gen2’s space- projects, such as airports, railways or metros. Additionally, in certain
saving, energy-efficient design with the connectivity of the Otis ONE IoT geographies, consistent with market practices, we sell our products through
(internet of things) digital service platform. agents and distributors.
Gen2 Gen3 Gen360 SkyRise
2022 ESG REPORT 6

About our business (continued) ~34,000 >1,400

service mechanics branches and offices
SERVICE
Like other electromechanical equipment, elevators and escalators are subject Our services include inspections, preventive maintenance and other customized
to wear and tear, which over time erodes functionality. As a result, our maintenance offerings tailored to customer needs. A basic maintenance
Service segment is a critically important and valuable part of our business. contract provides for inspection consistent with local regulatory requirements.
We perform maintenance, repair and modernization work for elevators and We offer incremental, tiered maintenance and service offerings that have
escalators. We have a maintenance portfolio of approximately 2.2 million varying levels of coverage up to and including comprehensive component
units globally, which includes Otis equipment manufactured and sold by us, replacement coverage. We also provide customers with repair services to
as well as equipment from other original equipment manufacturers. Through address equipment and component wear and tear or breakdowns.
our network of Service sales personnel, we sell our services directly to
Service contract duration depends on several factors, including customer
customers in all significant elevator and escalator verticals around the world.
needs, regulatory requirements, and industry and geographic dynamics.
Service customers are typically composed of building owners, facility For example, customers owning or operating large properties or portfolios
managers, housing associations and government agencies that operate of properties tend to execute long-term maintenance agreements.
buildings where elevators and escalators are installed. Customers securing
As equipment ages, we also work with customers to renew or refresh their
maintenance service for elevators are frequently different from those who
elevators with modernization solutions that enhance equipment operation,
initially make purchasing decisions for New Equipment.
reduce environmental impact and improve building functionality. Modernization
We seek to grow our maintenance portfolio through conversion of newly offerings can range from relatively simple upgrades of interior finishes
installed units into maintenance contracts, through prospecting and winning and aesthetics to complex upgrades of larger components and subsystems
units already in service from customers using another service provider, and to full replacements, which can ultimately reduce our customers’
through small acquisitions. Our Service sales personnel seek to win contracts environmental footprint.
on the expiration or termination of existing ones by offering a superior value
We provide service offerings to our customers through a global network of
proposition: service excellence; an engaged and technically sophisticated
approximately 34,000 Service mechanics operating out of over 1,400 branches
group of field technicians; a streamlined customer experience; and strong
and offices, typically located near population centers. These highly trained
elevator and escalator operating performance.
mechanics are critical to our ability to deliver excellent service to our customers.
2022 ESG REPORT 7

Alignment of Otis business strategy with ESG pillars

Our business strategy and ESG focus areas support our efforts toward a stronger, more sustainable
and more inclusive tomorrow.
Above all, we are committed to the health and safety of our colleagues and productive. We view digitalization as a key to improving customer satisfaction,
the riding public. We strive to reduce the environmental impact of our own upskilling and enhancing the productivity of our workforce, and reducing our
products, operations and services to support our customers’ ESG goals. environmental footprint.
We foster a culture that embraces all voices and diverse points of view and
The Otis Absolutes of Safety, Ethics and Quality are core to our people
proactively engage with the communities we serve. We strive to act with
and our business. With unified commitment, these Absolutes are the guiding
integrity, every time, everywhere. We understand that the way we act matters.
principles that define us, shape how we work and set us apart. While we are
In 2022, we continued to build on that vision and legacy, carrying our
many voices, we share a common goal: to be our absolute best. It is simply
groundbreaking innovations forward by focusing on technology for safer,
who we are. We have codified The Otis Absolutes in a clear and comprehensive
more sustainable rides, improving customer service and passenger experiences,
document designed as a blueprint for all Otis colleagues. It establishes standards
and expanding our diversity strategy to become a more inclusive workplace.
of conduct and enables ethical, value-based decision-making. Complementary
As our role in the world expands, we are winning more New Equipment company policies cover topics such as antitrust, anti-corruption, international
contracts, maintaining a larger portfolio and modernizing more elevator systems, trade, human rights and other key compliance risk areas, which we discuss
while leveraging digital tools to make us smarter, more efficient and more throughout this report.
2022 ESG REPORT 8

ESG at Otis
The four pillars that drive our ESG strategy are integrated within our larger corporate strategy and create
value for our colleagues, communities, customers and shareholders.
HEALTH & ENVIRONMENT &

SAFETY IMPACT Our collective commitment
and vision in motion
Safety is at the heart of our business, and As we help the world’s cities grow and people Integrating our strategic pillars
we prioritize the health and safety of our move, we are committed to managing our and our ESG commitments to
passengers and colleagues, including impact on the environment. We are reducing drive shareholder value
approximately 41,000 highly experienced our emissions by measuring and managing
field professionals who install and service the environmental impact of our products and
equipment around the world. operations, including our factories, real estate
and fleet. A roadmap is in place to continue Sustain New Accelerate
our progress in making positive impacts across Equipment Service portfolio
growth growth
our value chain.
PEOPLE & GOVERNANCE &

COMMUNITIES ACCOUNTABILITY CONNECT &
THRIVE
Otis is committed to fostering an inclusive We uphold the highest standards for strong
culture where every voice feels safe, welcomed governance, ethics and integrity, which are driven
and heard. We strive to continue cultivating by our Absolutes. Management is responsible Advance Focus &
an environment where growth and innovation for executing the Otis strategy, including our digitalization empower our
are celebrated. By ensuring an equitable and ESG strategy, and the Board of Directors (Board) organization
inclusive work environment, we empower our actively engages with management to guide,
people. And through our community impact inform and advise for long-term value creation.
initiatives, we interact meaningfully and create These guiding principles govern how we think,
positive change in our communities. how we make decisions, and how we act every
day, everywhere.
2022 ESG REPORT 9
2022 ESG at a glance

ESG STANDARDS KEY PERFORMANCE INDICATORS (KPIs) SUMMARY
We are a signatory of the United Nations Global Compact, and we report under In 2021, we established 13 goals within our four pillars and aligned with
the following frameworks: Global Reporting Initiative (GRI) Standards, the U.N. Sustainable Development Goals (SDGs). In 2022, we continued to
Sustainability Accounting Standards Board (SASB) guidelines for the Resource build on our ESG strategies to deliver long-term sustainability value to our
Transformation sector (with Electrical & Electronic Equipment and Industrial stakeholders and made progress on our ESG goals, as described below.
Machinery & Goods as subsectors, when applicable), and the Task Force on
Climate-related Financial Disclosures (TCFD) recommendations (see pages 58-76).
We also submit to CDP, originally known as the Climate Disclosure Project, where
we received a B, a score for companies that “have addressed the environmental Otis achieved a Gold sustainability
impacts of their business and ensure good environmental management.” We
engage third parties for limited assurance covering certain health and safety,
rating from EcoVadis.
environment and impact, and people and communities metrics (see pages 77-80).
HEALTH & SAFETY ENVIRONMENT & IMPACT**

GOAL 2022 RESULTS SDG ALIGNMENT GOAL 2022 RESULTS SDG ALIGNMENT
Commit to achieve a 3 fatal injuries Achieve a 50% reduction 11% reduction from 2019 to 2022, and 4.8%
zero-harm workplace TRIR* = 0.57, LTIR* = 0.17 of Scope 1 and Scope 2 reduction from 2021 to 2022. Added an ESG
emissions by 2030 performance multiplier to our executive short-term
Educate all field Field professionals and field subcontractors are
incentive program, which may increase or decrease
professionals and field educated through communications, safety training,
the payout factor
subcontractors annually on safety events and other channels
life-saving Cardinal Rules Reach carbon neutrality for 47% of factory electricity consumed now
factory electricity by 2030 carbon neutral
Expand availability of well- Goal achieved in 2022:
being and resilience services
to all colleagues worldwide
100% Otis colleagues covered Achieve 100% factory 54% program elements implemented compared to
eligibility for zero-waste- 23% in 2021, based on the GBCI TRUE (Total Resource
through an Employee
to-landfill certification and Utilization Efficiency) program methodologies.
Assistance Program by 2023
by 2025 Our Florence, South Carolina, U.S., facility received
TRUE Zero Waste Gold certification in 2022
Complete ISO 14001 Goal achieved in 2021:

certification for all
factories by 2025
100% of factories certified
*
Total Recordable Incident Rate and Lost Time Incident Rate.
2022 ESG REPORT **
Environmental data reflects adjustments to remove Russia business (which has been divested) from the baseline and subsequent years. 10
2022 ESG at a glance (continued)

KPIs SUMMARY (CONTINUED)
PEOPLE & COMMUNITIES GOVERNANCE & ACCOUNTABILITY

GOAL 2022 RESULTS SDG ALIGNMENT GOAL 2022 RESULTS SDG ALIGNMENT
Achieve gender parity in our executive 39.2% female executives, a 3.2 point Award at least 20% of U.S. supplier >20% awarded
ranks by 2030 increase from 2021. Added an ESG spend annually to diverse suppliers*
performance multiplier to our executive
short-term incentive program, which may
increase or decrease the payout factor
Increase colleague favorability for

the inclusive culture category in the
company’s engagement survey by
72% favorability achieved, a 1 point
increase from our baseline
4 percentage points by 2025 (against
a baseline of 71% favorability)
Direct 50% of total global giving to

science, technology, engineering and 51%
math (STEM) programs by 2025
Impact 15,000 students globally

through STEM focused programming
across the learning and vocational ~1,600 students impacted
training continuum to improve >2,500 cumulative students impacted
livelihoods and help build the
workforce of tomorrow by 2030
Dedicate 500,000 cumulative colleague

volunteer hours in support of vibrant
communities, STEM education and
>43,000 volunteer hours
social equity efforts globally by 2030
*Diverse supplier is defined as a supplier that is at least 51% owned by an individual or group that is underrepresented (i.e., minority-, women-, veteran-, LGBTQ+ or
2022 ESG REPORT disability-owned), a small business and/or operating in an economically disadvantaged location based on the U.S. Small Business Administration definitions. 11
2022 and 2023 Otis awards and accolades
The World’s Top Female-Friendly Companies – Forbes, 2022 CIO 100 – CIO, 2022
World’s Best Employers – Forbes, 2022 INNOSTAR – Korea Management Registration, 2022 and 2023
America’s Most Responsible Companies – Newsweek, 2022 and 2023 Project of the Year: Taichung Mass Rapid Transit (MRT)
Best Places to Work for LGBTQ+ Equality – Human Rights Green Line (Taiwan) – Elevator World, January 2022
Campaign Foundation, 2022 Project of the Year: East Rail Line-Cross Harbour
World’s Most Admired Companies – FORTUNE, 2022 and 2023 Extension (Hong Kong) – Elevator World, January 2023
Noteworthy Companies – DiversityInc, 2022 Project of the Year: 22 Bishopsgate, London – Elevator World,
January 2023
Japan PRIDE Index 2022 – work with Pride (wwP), 2022
Top 100 Global Innovators – Clarivate, 2023
Top Employer in China – Top Employers Institute, 2022
Customer Spotlights
81 Newgate Street, London, United Kingdom Chahuadi neighborhood, Shenzhen, China

This 1980s office block is being transformed into a modern mixed-use Shenzhen is home to more than 17 million people and is known as China’s
development as a gateway to London’s Culture Mile. Developers aspire Silicon Valley.
for 81 Newgate Street to be London’s first net-zero carbon complex at
Otis was selected to support a major urban renewal in the Chahuadi
its expected 2025 opening.
neighborhood, installing approximately 280 elevators with digital solutions,
Otis is contributing to this aspiration with: including our Otis ONE IoT platform. The project includes more than 200
Otis SkyRise elevators, which come standard with our energy-saving ReGen
• 23 Gen2 Stream elevators equipped with ReGen drives
drives, and our permanent-magnet SkyMotion machines, among the most
• Compass 360, our destination-management system energy-efficient available.
• Six LINK escalators Chahuadi was also the first project in China to use Otis SkyBuild units for
faster, safer transport of construction teams. SkyBuild cabs include angled
roofs to protect workers from overhead or falling hazards.
2022 ESG REPORT 12

Health & Safety

We will not be satisfied until our workplaces are safe
from hazards, colleagues are injury-free, and products
Otis Cardinal Rules
and services remain safe for the riding public and Always ensure protection from falling where a
everyone who interacts with Otis equipment. fall hazard exists.
Always follow lock and tag out procedures
when power is not required. Never work or position
body parts in proximity to
Always use ground fault circuit interrupters on
Safety is one of our Absolutes. We make employee health and unguarded moving parts
portable corded electric tools and devices, other or electrical circuits.
safety an integral component of the business processes that impact than authorized uses in Otis facilities.
Otis products, services and operations to prevent colleague and Always identify confined spaces and follow
subcontractor injuries and fatalities. written procedures for entry.
Our fundamental work-safety principles are the Cardinal Rules.

Always maintain control of the elevator when
It is imperative that these rules are followed. As the leader of the accessing/egressing the hoistway, working on
elevator and escalator industry, we hold ourselves to the highest the car top or in the pit.
safety standards. We actively work to ensure that our workplaces Always follow the operation’s authorized control
processes when using jumpers and shunts. Never ride the car top
are safe, and our colleagues and subcontractors have tools, training with the elevator in
and support to create and sustain an injury-free environment. Elevator Always follow the operation’s authorized normal operation.
procedures for hoisting and rigging and
mechanical blocking of elevator equipment.
Always follow the operation’s authorized
procedures for false cars/running platforms.
Our fundamental work-safety principles are
designed to deal with the hazards in our Always use inspection controls to operate
Never walk on step axles.
industry – from fall protection in the hoistway or move the step chain.
Never ride the escalator
to controlling elevator and escalator movement Always verify the proper functioning of the
with steps/pallets removed
escalator’s emergency stop switch prior to
during service and electrical safety procedures entering the machine room or the pit.
unless there is only one
opening, the opening
on the jobsite. Always use effective barriers and warnings, is barricaded, the unit is
Escalator and block the unit electrically and mechanically, on inspection, and there
when leaving the escalator unattended with are clear modes of
steps/pallets removed. communication to ensure
that all personnel are
Always secure the step chain from movement
aware of when and how
by two independent means when work is
the unit will move.
performed in the truss.
2022 ESG REPORT 13

Goal: Commit to achieve a zero-harm workplace
Otis aims to achieve zero fatalities and serious injuries across

our workforce.
We engage colleagues and our subcontractors through global campaigns and training about this authority and many other safety measures. Training on
programs, and we use various leading and lagging indicators to assess our Stop Work Authority, metrics around when and where the authority has been
progress and measure the success of our safety program. Leading indicators exercised, and recognition of our colleagues and subcontractors for doing
include key safety-training completion rates, operations and colleague audit the right thing are tracked globally and reported to senior management,
scores, and colleague survey scores, under such programs as Focused Field including our CEO and Board.
Audits and Fatality Prevention Audits. Our lagging indicators are Total
Recordable Incident Rate (TRIR), Lost Time Incident Rate (LTIR), fatal injuries Stop Work
and serious injuries. All leading and lagging indicators are reported to senior Authority (SWA) 2021 1,500+
leadership regularly. We also leverage our global expertise and experience Utilization
to seek feedback on program enhancements and emerging issues. Two main
Number of SWA Events
vehicles we use to gather this information are our Field Safety Council and
Factory Safety Council. 2022 4,500+
Field Safety Council is composed of cross-functional subject matter experts
(SMEs) from Environment, Health and Safety (EH&S), field operations and
engineering. This council provides standardized procedures, tooling and
Stop Work Authority in practice
control measures aimed at less improvisation and ultimately fewer serious
Otis colleagues and our subcontractors are empowered to stop work
incidents in the field.
if they see an unsafe condition or a behavior that might cause injury.
Factory Safety Council provides an opportunity for all global factories to discuss
While installing hoistway wiring, a subcontractor in Italy became alarmed
common challenges and share best practices. It is also used to discuss progress
by the strong smell of gas inside the elevator shaft. Concerned about the
on the implementation of global initiatives and other program enhancements.
gas creating a dangerous condition for himself and the entire building, the
All Otis colleagues and subcontractors are empowered with Stop Work subcontractor initiated Otis’ Stop Work Authority and contacted the
Authority. This program, which was formally initiated in 2019, empowers any fire department. The fire department arrived quickly and found a gas leak
colleague or subcontractor to stop work on any job, during any activity, at seeping through the building’s electrical ductwork into the elevator shaft.
any time, in the event of a safety concern – and to raise the concern to their This example shows the hazards our field colleagues and subcontractors
immediate supervisor. They then work together to address the risk. Our face and highlights the importance of our Absolutes and the need to
mechanics, supervisors and subcontractors around the globe receive continual always remain vigilant.
2022 ESG REPORT 14

Goal: Commit to achieve a zero-harm workplace (continued)
Aligned with Otis policy, incidents of all types – regardless of severity – must
be reported to supervisors. Events involving lost time or that result in either
restricted work activity or require medical treatment beyond first aid must be
formally reported in our safety data management system. Investigation of
incidents are conducted by the affected operation and region, as appropriate.
In 2022, the Otis TRIR of 0.57 and LTIR of 0.17 represented a 7% reduction
and 11% reduction, respectively, compared to 2015. However, we are
saddened to report that Otis experienced three fatal injuries, one to an Otis
colleague and two to subcontractors, in 2022. These tragedies show that,
despite strong governance, controls and procedures, we must remain diligent
in our efforts to achieve our goal of a zero-harm workplace.
We are taking actions to further engage colleagues and subcontractors
and educate our workforce as we continue to look for ways to drive down
serious and fatal injury rates. When fatal or serious events occur, Otis has TRIR LTIR
a robust process in place to ensure they are thoroughly investigated to Improved 7% Improved 11%
identify root cause. Immediate local and global corrective actions are
identified, implemented and tracked to closure. An example of global
corrective actions is the creation of a cross-functional team to explore the
use of engineering solutions to reduce field jobsite risk, including human
detection in the hoistway.
2015 2022 2015 2022
2022 ESG REPORT 15

Goal: Educate all field professionals and field subcontractors*

annually on life-saving Cardinal Rules
In 2022, Otis field professionals and field subcontractors engaged in activities when we lock and tag out an elevator to perform work, our standards
aimed at reinforcing the importance of our Cardinal Rules. These engagements require verification that the unit is in a zero-energy state. Another example
included formal and informal communications, classroom training sessions, of the standards requires electrical protection if working within 1.5 meters
and the various activities and events discussed below. Through these learning of exposed electrical components.
opportunities, we stressed the proper application of these rules through real-
world examples and the sharing of past experiences among direct peers.
We completed our third annual Season of Safety, themed Control Is in Your
Hands, where we reinforced the company’s strong safety culture by sharing
best practices, hosting interactive workshops, recommitting to our life-saving
Cardinal Rules, and prioritizing ongoing training on safety procedures and
protocols. The 2022 season consisted of 24 organized global events that
included cross-functional participation. Our global events focus on our key
incident drivers with special focus on preventing fatal and serious injuries.
One way we engage our field colleagues is through a motivational group
training that gives both Otis colleagues and subcontractors an opportunity
to challenge one another and build knowledge around our safety program.
Overall, the program had over 30,000 participants in 2022 and included over
200,000 individual touchpoints with our colleagues and subcontractors.
We also launched a Field Training Center of Excellence (COE), which is
designed to educate our colleagues and field partners on rules and procedures
through continued global training programs. Currently, the COE is developing 2022 Season of Safety
a core training curriculum for mechanics and subcontractors, focused on
technical and safety training. In addition, we have promulgated Field Standard
Practices for high-risk work activities, promoting a common approach on
a global basis. We have established Otis Safety Standards addressing the
minimum standard of safety for common high-risk activities. For example, 30,000+ 24 200,000+
participants organized individual
global events touchpoints
*For this goal, the terms subcontractor and field subcontractor are used interchangeably. It is a type of supplier who performs installation,
2022 ESG REPORT maintenance, modernization or associated services on behalf of Otis under a contractual agreement. 16
Goal: Educate all field professionals and field subcontractors

annually on life-saving Cardinal Rules (continued)
We require our subcontractors to meet global requirements concerning We strive to ensure that our Cardinal Rules are understood by all our field
the use of only trained and authorized personnel, adherence to Otis colleagues and subcontractors, and we check their safety compliance
methods and safety requirements, and other critical elements. We assess through audits and other means. With the easing of COVID-19 travel and
subcontractor risk on active jobsites through the use of tools such as the job site restrictions, we have been able to perform more in-person compliance
prestart inspection and Fatality Prevention Audits. These tools ensure that audits, including:
all significant risks are appropriately addressed before work can commence • ocused Field Audit: This program is designed to measure our field
F
or continue. In addition, we assess subcontractor company risk annually
operations’ compliance with our global field safety and management
and continue to identify high-risk subcontractors based on a set of factors,
system requirements.
allowing us to drive individualized action plans that are tracked at the local
and regional levels and reviewed at the global level. Our subcontractor risk • atality Prevention Audit: This program is used to evaluate the
F
assessment was also used to grant our first-ever supplier safety award. performance of field colleagues with respect to predetermined high risk
activities related to working on elevators and escalators.
• Self-assessment program: Each of our operations is required to conduct
a self-assessment program evaluation that covers compliance with global
standards and the requirements of the Otis EH&S Management System.
From this assessment, we identify improvement opportunities for
implementation prior to the formal audit.
In the event of non-compliance with the Cardinal Rules, we take appropriate

action, such as requiring improvements or terminating our business
relationship with a subcontractor. We also address specific root causes of
violations by providing additional training and establishing process changes,
procedure updates and tooling improvements.
2022 ESG REPORT 17

Goal: Expand availability of well-being and resilience services to all colleagues

worldwide through an Employee Assistance Program by 2023
At Otis, we are focused on our colleagues’ mental and physical well-being. We are pleased to announce that in 2022
Without proper assistance and support there may be greater risk of injury or
even death for colleagues or those around them. Otis offers mental health
Otis Care EAP was expanded to cover
support to all Otis colleagues through Otis Care, an Employee Assistance all Otis colleagues – a goal we achieved
Program (EAP), providing a mix of work-life services, 24/7 live support and one year earlier than anticipated.
treatment or referrals for clinical health issues. It also includes coaching for
managers navigating complex issues and critical incident-response support.
2022 ESG REPORT 18

Environment & Impact

We are committed to promoting sustainability in our business to support our customers and
communities. We are managing our impact on the environment through our factories, real estate
footprint and vehicle fleet.
With customers in more than 200 countries and territories globally, we must to manage and address sources of factory electricity, industrial and hazardous
design, manufacture, install and service our equipment responsibly and waste, and water consumption, and to expand the number of products
effectively. To do so, we operate through more than 1,400 branches and offices, covered by Environmental Product Declarations (EPDs). See page 52 for
17 factories and a global fleet of approximately 22,000 vehicles that transport further information.
our field professionals to and from jobsites. To date, we have made steady
Broad business benefits are being realized through both enhanced efficiency
progress reducing the environmental impact of our operations, specifically
and operational excellence. We are identifying opportunities for cost reduction
on Scope 1 and Scope 2 emissions (see below) – with a goal of reducing our
and margin improvement through our sustainability efforts, while also
greenhouse gas (GHG) emissions by 50% by 2030. We are expanding those
aligning our products with customer demands.
efforts with the quantification of Scope 3 emissions, and we intend to submit
to the Science Based Target initiative (SBTi) in 2023. In addition, we continue
GLOBAL GHG METRICS* ENERGY CONSUMPTION*
2019 2019
000s Metric Tons CO2e, except intensity 2020 2021 2022 GWh, except intensity 2020 2021 2022
(baseline) (baseline)
Direct (Scope 1) GHG emissions 142.7 132.1 134.9 131.7 Total electricity consumed 176.9 158.1 163.8 153.0
Indirect (Scope 2) GHG emissions 80.4 71.6 73.8 66.8 Total natural gas consumed 100.0 89.4 95.9 85.4
Total Scope 1 and Scope 2 GHG emissions 223.1 203.7 208.7 198.5 Total vehicle fuel consumed 453.3 422.3 427.7 388.2
Scope 1 and Scope 2 GHG emissions intensity

17.3 16.3 14.6 14.5 Total energy consumed** 735.8 674.7 693.8 632.2
(metric tons CO2e/$M net sales)
Energy intensity (MWh/$M net sales) 57.2 54.0 48.5 46.2
*Tables above reflect adjustments to remove Russia business (which has been divested) from the baseline and subsequent years.
Environmental data is measured annually from December 1 through November 30.
2022 ESG REPORT **Includes electricity, natural gas, steam, propane, diesel and gasoline. 19
Goal: Achieve a 50% reduction of Scope 1 and Scope 2 emissions by 2030
Otis reduced Scope 1 and Scope 2 GHG emissions by 4.8% in 2022, with a around a 13% reduction of its GHG emissions. At our Florence, South
cumulative reduction of 11% versus our 2019 baseline. These reductions are Carolina, U.S., manufacturing facility, we benefited from a full year of LED
the direct result of major initiatives implemented over the last few years, such lighting systems in place and upgraded our HVAC control system. These
as focusing on factory energy management, real estate and fleet. In 2022, we actions, among others, contributed to an almost 14% reduction in GHG
also took the critical action of linking our Scope 1 and Scope 2 GHG emission emissions at the facility. At two of our manufacturing facilities in Spain, we
reduction goal to our executive short-term incentive (STI) compensation eliminated the use of natural gas entirely. Our São Bernardo, Brazil, plant
program. The added performance multiplier can adjust the STI awards up or installed variable frequency drives on key process equipment in 2022, and
down by 5% based on our progress toward achieving this goal. It is intended our facility in Tianjin, China, underwent a detailed energy assessment by
to drive immediate near-term action. We continue to assess opportunities for an energy consultant to find additional ways to use energy efficiently.
emission reductions in our business as we drive toward our commitments.
FACTORY ENERGY MANAGEMENT

A cornerstone of our factory emission reduction program is the implementation Scope 1 & Scope 2 Reduction Scope 1 & Scope 2 GHG
of energy best management practices. These include: Pathway (2019 Baseline) Emission Breakdown
• Upgrading lighting to high-efficiency LEDs
11%
Factories
• pgrading HVAC (heating, ventilation and air conditioning) and
U
>20%
boiler equipment
• Upgrading building material insulation and altering external airflow Real
Estate
50% Fleet
• Optimizing machinery use and shutdown time
• Adding building automation to use energy only when needed
By the end of 2022, we implemented over 60% of feasible energy best practices
at our global factories. For example, in our factory in Bengaluru, India, we 2019 2022 2025 2030
instituted a Shut it Off program and trained our colleagues on the importance The diagrams reflect adjustments to remove Russia business (which has been divested)
from the baseline and subsequent years.
of energy-efficient equipment usage by conducting sleeping plant tours and
inventory assessments to identify equipment that can be shut down while
idle. In our Bristol, Connecticut, U.S., research and testing center, we installed
a more efficient boiler. This significant change resulted in the facility having
2022 ESG REPORT 20

Goal: Achieve a 50% reduction of Scope 1 and Scope 2 emissions by 2030 (continued)
In addition to these efforts, four of our manufacturing plants now source of becoming certified LEED Gold with a target to become LEED Platinum
100% of electricity from renewable sources (three in Spain and one in soon after. Through these initiatives, among others, we have achieved an
Germany). We also have expanded onsite solar electricity generation with 11% reduction versus our 2019 baseline measurement year.
the installation of a 178 kWp photovoltaic (PV) system at our factory in
We have made tremendous progress in the implementation of energy-
South Korea. That system is expected to produce 35% of the site’s electricity
efficient projects and best practices at our global factories and intend to fully
demand while reducing GHG emissions by over 100 metric tons per year.
implement all viable opportunities over the next few years. In addition, we plan
Finally, we have opened a new factory in San Sebastian, Spain, built using to maximize the use of electricity from carbon-neutral sources as outlined in
certain sustainable construction materials with the intention of installing the next section.
on-site solar electricity-generation capabilities. The factory is in the process
11%
reduction in Scope 1 and Scope 2
GHG emissions versus 2019
Our factory in Bengaluru,

India, is one of seven Otis
locations equipped with
solar arrays.
2022 ESG REPORT 21

REAL ESTATE
We have implemented benchmarks and GHG metrics and embedded them in all global real estate decisions to ensure all stakeholders understand the emission
implications of real estate transactions. Additionally, with the expansion of the hybrid workplace model, we have already seen material progress.
These include:
World North Europe, Asia

Headquarters America the Middle East, Pacific
We reduced the Headquarters and Africa (EMEA) In the greater Tokyo
utilized space at our We consolidated three In Meyreuil, France, we area in Japan, we are
World Headquarters in locations in Palm Beach consolidated multiple completing a multisite
Farmington, Connecticut, Gardens, Florida, U.S., branches and offices consolidation, which is
U.S., by 62%, which lowered to one location, which into one location, reducing expected to result in a 50%
our energy utilization resulted in a 67% real our real estate footprint real estate footprint
by approximately estate footprint and energy utilization reduction.
20%. reduction. by 35%.
We continue to prioritize sustainable construction practices and materials for assess the real estate portfolio for optimization opportunities globally.
new facilities and remodeling projects, and to take advantage of renewable In addition, for existing properties, we will leverage energy best practices
energy sources where applicable to reduce emissions. We remain focused on currently being implemented in our factories and increase the amount
leveraging benchmarks, GHG metrics and hybrid workplace initiatives to of renewable energy we consume in these locations, where feasible.
2022 ESG REPORT 22

ELECTRIC VEHICLES (EVs)

With over half of our Scope 1 and Scope 2 GHG emissions coming from our
Singapore EV adoption
In 2022, Otis Singapore committed to converting its Service fleet to
fleet of approximately 22,000 vehicles consuming about 12 million gallons of
electric vehicles by 2024, partnering with EVCo, a company providing
fuel per year, reducing emissions in this area is imperative. We are currently
end-to-end electric-Mobility-as-a-Service (eMaaS) solutions for
in the pilot phase of EV adoption, with about 200 EVs deployed globally
electrification of vehicles. Together with Otis, EVCo will assess fleet
across 14 countries. We are assessing pilot EV effectiveness and evaluating
mobility needs, provision cost-effective electric vehicles and support
the right types of vehicles for our business. We are finding constraints related
the seamless integration of data-driven operating systems. Both
to vehicle availability due to supply chain challenges, vehicle range not meeting
parties will work together to build a digital operations platform,
the needs of our mechanics in some geographies and variability of charging
allowing users to utilize data and achieve effective operations through
infrastructure country by country. In areas where these constraints apply,
route optimization and preventive maintenance of the vehicles.
we are focusing on hybrid and plug-in hybrid electric vehicles (HEVs) and
currently have 300 of those vehicles deployed. In Japan, for example, the
infrastructure is not sufficiently developed to fully support electric vehicles
yet, so the fleet is being switched to either HEV, electric motorbikes or
compact fuel-efficient vehicles.
In addition to moving toward electric and hybrid vehicles, we are also using
route optimization software combined with business processes in our Service
network to reduce travel time. Our digital Otis ONE solution, alongside
other connectivity solutions, reduces callbacks and improves efficiency in our
Service business. This is a great example of emission reductions embedded
in our business strategy.
As we move forward in 2023, we are focused on driving more EV adoptions
where feasible and assessing alternative lower-emission vehicles where
appropriate. We are also continuing to grow our portfolio of digitally connected
units, expanding opportunities for productivity benefits. Singapore
~200
EVs deployed
~300
HEVs deployed
2022 ESG REPORT 23

Goal: Reach carbon-neutrality for factory electricity by 2030
In 2022, as a result of our environmental efforts, roughly 47% of the regional contracts to secure clean electricity. These contracts include power
electricity consumed by our factory operations came from on-site and off-site purchase agreements, virtual power purchase agreements and programs such
carbon-neutral sources, a mid-single digit percent improvement compared as Green Retail and Green Tariffs, which allow us to secure renewable energy
to the 2021 baseline. Otis defines carbon neutral as electricity generated credits from utilities. With the roadmap identified, in 2023 we will create
from geothermal, solar, sustainably sourced biomass (including biogas), region-specific implementation plans to realize opportunities identified for
hydropower and wind energy in alignment with RE100, a global initiative of both the short- and long-term.
businesses committed to 100% renewable electricity. As noted previously,
four of our factories (in Spain and Germany) source 100% of their electricity
from renewable sources. We currently have seven sites globally with solar CURRENT CONSUMPTION OF CARBON-NEUTRAL ELECTRICITY*
arrays, including the addition of our factory in South Korea, as described in GWh, except % 2021 2022
the previous section. We plan to continue to evaluate our ability to maximize
Carbon-neutral electricity generated on-site 3.1 3.6
these resources where economically feasible and allowed by local
regulatory requirements. Carbon-neutral electricity purchased 16.7 17.0
Total carbon-neutral electricity consumed 19.8 20.6

Also in 2022, we engaged a third-party SME to develop a roadmap for not
only our factory carbon-neutral electricity goal, but also in support of our Total electricity consumed 46.7 44.2
GHG reduction target. That roadmap outlines opportunities between now % Carbon neutral 42% 47%
and 2030 to maximize the amount of renewable energy we can integrate into
*Environmental data reflects adjustments to remove Russia business (which has been divested) from all years shown in
our direct operations. It includes additional on-site solar arrays and local and this table. Environmental data is measured annually from December 1 through November 30.
2022 ESG REPORT 24

Goal: Achieve 100% factory eligibility for zero-waste-to-landfill (ZWTL)

certification by 2025
Through 2022, we have implemented 54% of program elements necessary for

our factories to seek certification under the TRUE framework, administered by
Green Business Certification Inc. (GBCI). The TRUE framework is a rating system
that requires facilities to divert at least 90% of non-hazardous solid waste
from landfill, incineration (waste-to-energy) and the environment through the
adoption of sustainable waste management and reduction practices. This
year we focused on the following:
• Implementing programs in support of sustainable raw material procurement
• Analyzing waste
• Driving colleague and leadership awareness
A key highlight was the creation of an Otis global guidance document,

which included the necessary elements for implementing an Environmental Our Florence, South Carolina, U.S., factory is the first facility in the elevator industry to be
TRUE certified.
Preferred Purchasing (EPP) program at the operating level.
The key initiatives above allowed us to reach a significant milestone within our factory under the 2022 Zhejiang Province-wide Work Plan for Pilot
program: In December 2022, Otis achieved Gold-level TRUE certification for Construction of a “Waste-Free City,” a local initiative. Although not related
zero waste efforts at our manufacturing facility in Florence, South Carolina, U.S. to the formal zero-waste-to-landfill certification, we are pleased with the
The Otis factory is the first in the elevator industry to be TRUE certified. It is local team’s progress to earn this distinction.
also the first building infrastructure factory to be certified in South Carolina.
In 2023, our focus will be on furthering the implementation of TRUE framework
elements involving:
Our Florence, South Carolina, U.S., facility exceeds the TRUE non- • Composting
hazardous solid waste threshold of 90% by keeping nearly 98% of
all site-generated waste out of landfills and incinerators. • Closed-loop recycling
• Developing sustainable innovations
Another example of progress is our factory in Hangzhou, China, which reduced
total waste by over 300 tons in 2022 by improving raw material utilization
rates. This factory was recognized by the local government as a no-waste
2022 ESG REPORT 25

Goal: Complete ISO 14001 certification for all factories by 2025
In 2021, we achieved our goal of having all our factories certified ISO 14001, several years ahead of schedule. ISO 14001 is an internationally agreed standard
that sets out the requirements for an environmental management system. Read more in our 2021 ESG report on page 36.
In addition to achieving our ISO 14001 certification goal, 10 of our facilities have also achieved ISO 50001,
the global standard for energy management systems to establish, implement, maintain and improve
energy management.
2022 ESG REPORT Read more in our 2021 ESG report, on page 36, here. 26
Scope 3 emissions
A topic that has been a high-priority focus for our organization is the Through this initial exercise we identified the end use of our products by our
quantification and disclosure of our Scope 3 GHG emissions. Scope 3 emissions customers (Scope 3 Category 11) and our purchased goods and services
include all other indirect emissions that occur in the Otis value chain that are (Scope 3 Category 1) as the priority emissions requiring additional quantification.
outside of our direct operations. Much like the Scope 2 category, Otis is not
With the initial screening complete, we engaged a leading SME to create a
directly responsible for the generation of actual greenhouse gas in the Scope 3
process for calculating our priority emissions more precisely, going beyond
category. Rather, the emissions are generated either upstream or downstream
the use of basic spend data. The process allowed us to supplement that data
from our processes by another operator in our value chain. Examples include
with more mass-based data and match the different spend categories to
emissions generated by suppliers manufacturing raw materials used in our
specific product types. This permits us to calculate emission-intensity values
factories, fuel consumed by third-party logistics companies shipping our product
for materials requiring more energy to produce. With refined calculations
to the field and electricity consumed by customers using our products.
in place, we have confirmed the priority emission categories that are
We are currently executing a project to further assess our Scope 3 emissions. most material to our business, including an initial assessment of reduction
Our ultimate intention is to set targets that address GHG emissions across opportunities in those areas.
our entire value chain, which expand upon our existing Scope 1 and Scope 2
The final phase of the project will include formal creation of a strategy and
target and are considered independently to be science based. Our initial efforts
roadmap to reduce carbon emissions from these priority categories. It will start
included the creation of a cross-functional team to outline project objectives
with modeling to project our total emissions long term, using predetermined
and provide guidance on the key upstream and downstream Scope 3 categories
climate scenarios and projected business growth data. These projections will
that are most material to Otis. That engagement involved the identification
support the identification of opportunities to drive reductions in support of
of existing business data (i.e., business spend data and production totals) to
mid-term and possibly long-term Scope 3 reduction targets. Once this process
be used to conduct an estimate of our Scope 3 emissions using a calculator
is complete, our intention is to submit to SBTi in 2023.
recommended by CDP for our annual climate change disclosure.
Emission reduction
Planning Quantification roadmap
• Form cross-functional team • Identify third-party SME • ssess and model decarbonization
A
• tilize existing business data
U • Enhance quantification method pathways
to estimate emissions • Confirm identified priorities • et targets and develop reduction
S
• Identify priority categories • ssess initial opportunities to
A strategy
impact priority categories • ommunicate intentions internally
C
and externally
2022 ESG REPORT 27
People & Communities

Otis is approximately 69,000 colleagues strong, including approximately
41,000 field professionals – all committed to delivering excellence.
We deem it mission critical to cultivate a safe, diverse, inclusive and

innovative workplace for our people to connect and thrive. Our fundamental
strength stems from the contributions made by the multiple cultures, skill
sets and experiences of our team members. In 2022, we continued to build
on our diversity, equity and inclusion (DE&I) strategies. They are grounded
in Our Commitment to Change framework and foster an environment
where innovation and continuous improvement are rewarded, and all Otis
colleagues feel safe, welcomed and heard. We strive to provide equal
opportunities for everyone to grow and contribute.
~69,000
colleagues
~41,000
field professionals
2022 ESG REPORT 28

Goal: Achieve gender parity in our executive ranks by 2030
It is imperative that Otis leadership reflects the colleagues, communities and customers we serve.
In 2022, we increased our female executive representation to 39.2%, a 3 point increase since 2021, aligned with our goal to close the executive gender gap by
2030 and consistent with our pledge to the Paradigm for Parity coalition. We also took the critical action of linking this goal to our executive STI compensation
program. The added performance multiplier can adjust the STI awards up or down 5% based on our progress toward achieving this goal. It is intended to drive
immediate near-term action. Below are some of the key initiatives we led in 2022 to drive results for a more diverse workforce. For additional initiatives on
workforce diversity, see page 35.
DE&I ADVISORY GROUP EMPLOYEE RESOURCE GROUPS GLOBAL FEMALE DEVELOPMENT
The DE&I Advisory Group, established in We continued to strengthen our Employee We continue to support global female
November 2021 and discussed in further detail Resource Groups (ERGs) in 2022 by appointing development through external programming.
on page 41, has been instrumental in furthering 10 new executive sponsors, expanding our In 2022, participation in our Signature Leaders
our DE&I priorities. In 2022, the DE&I Advisory ERGs (e.g., OWN Middle East supporting program increased by nearly 500%. We are
Group improved representation through women’s empowerment, Thrive LAA seeing the impact of our development efforts
balanced slates and pipeline goals; confirmed supporting inclusion and accessibility), and through talent movement, as approximately
global baselines of underrepresented talent by offering new programming around well-being 26% of participants in female-focused programs
market; reinforced mindset and held leaders and an inclusive culture to increase diverse experienced a lateral move or promotion in 2022.
accountable to increase inclusion and belonging talent globally. Through our ERGs, we develop We also piloted a sponsorship initiative through
across the organization; and accelerated our colleagues’ careers, foster an inclusive one of our strategic partners and have formally
sponsorship, mentorship and allyship through culture, and invest in the communities where launched an Otis sponsorship program for select
focused development programs. we live and work to make a difference. For leaders commenced in February 2023.
additional information regarding our ERGs,
see page 51.
2022 ESG REPORT 29

Goal: Increase colleague favorability for the inclusive culture category in

the company’s engagement survey by 4 percentage points by 2025
In 2022, 72% of our Otis colleagues agreed with the statement “Our team has survey and sharing important information on disability inclusion and its
a climate in which diverse perspectives are valued,” representing a 1 point impact on business performance.
improvement from our baseline of 71%. This progress results from the many
Through the Otis Thrive ERG, we have committed to furthering our disability
initiatives we have undertaken over the past year to further our DE&I strategy.
inclusion efforts. Some of these actions include:
As we continue efforts toward reaching the 4 percentage point increase
• Educating colleagues about disability accommodations
by 2025, we are implementing additional initiatives for a more inclusive
workforce with diverse perspectives. • Implementing a learning program and process improvements
• Increasing disability representation
We launched a formal allyship initiative, We Are Many Voices, as part of
our global inclusion month in October. Throughout the month, colleagues • Improving accessibility of our internal communications, tools and spaces
participated in events and conversations about purpose, courage, mental We recently created and filled a new position, Global Disability
health and well-being, generational awareness, and other topics specific to Accommodations & Accessibility Lead, to help further these initiatives.
fostering an inclusive environment.
We implemented a gender identity policy in the Americas with accompanying
training for managers. We also revised our EEOC (U.S. Equal Employment Celebrating the Power of She
Opportunity Commission) and ADA (The Americans with Disabilities Act of 1990) Developing female talent and promoting diversity and inclusion are
policy to improve its visibility for leaders and colleagues. We launched an priorities throughout our organization. In China, accomplishments of
optional self-ID campaign, Free to Be Me, in 25 countries, which allows Otis female colleagues are celebrated through the Power of She initiative.
colleagues to voluntarily self-report their demographic data (e.g., race and In this series of short videos, female leaders across diverse functions
ethnicity, disability status, gender identity, sexual orientation and/or military share their inspirational stories of career growth and achievement
service, as applicable per country laws). This program will allow us to establish at Otis. We have supplemented this initiative with development
a broader set of baselines, gain more robust equity and inclusion insights, and programs and workshops focused on female advancement.
further develop meaningful programs that help to drive our DE&I strategy. In
2023, we expect to continue expanding this program, adding at least 15 countries.
Our Chair, CEO and President, Judy Marks, joined more than 140 leaders
of other companies in signing the CEO Letter on Disability Inclusion with
Disability:IN, an organization with the goal of creating an inclusive environment
for all. We have been a corporate member of Disability:IN since becoming
independent in 2020. In the letter, CEOs urge one another to evaluate their
corporate progress by taking an annual Disability Equality Index benchmarking
2022 ESG REPORT 30

Goal: Impact 15,000 students globally through STEM-focused programming

to improve livelihoods and help build the workforce of tomorrow by 2030
In 2022, approximately 1,600 students benefited from Otis-sponsored STEM Building on the success of our Made to Move Communities program, we
and/or vocational education and training programs with more than 2,500 implemented additional initiatives and continued to strengthen our relationships
students impacted cumulatively since we set our goal in 2021. Our signature with STEM-driven organizations:
program, Made to Move Communities, is a high-touch mentorship program • eaching: Through the Otis STEM Kit program, Otis colleagues in the U.S.
T
delivering quality STEM learning experiences to high school and college
provide youth ages 8-12 with materials needed for a two- to three-hour
students. Each year students around the world take on the role of product
STEM class and engage with them in hands-on STEM activities using these
engineers during a six- to eight-week period, identifying and developing
kits. Additionally, Otis colleagues in Hong Kong, Southeast Asia and India
solutions to eliminate mobility barriers on topics related to sustainability,
have also engaged in STEM programs for this age group.
inclusivity and education. Otis colleagues mentor them throughout the process.
We are proud of the success of this program, as evidenced by the growth of • oaching: Otis volunteers coached and led eight robotics-focused
C
its scope and presence since its inception in 2020. For Inspiration and Recognition of Science and Technology (FIRST®) teams
across the U.S. and Canada in competitions, such as FIRST® LEGO® League,
2020-21 CHALLENGE 2021-22 CHALLENGE FIRST® Tech Challenge, and the FIRST® Robotics Competition.
14 student teams across nine 20 student teams across 14 countries • Scholarships: To provide scholarships to underserved and underrepresented
countries and territories focused on and territories created STEM-based students, we continued collaborating with the China Women’s Development
helping communities respond to solutions to help older populations Foundation’s Mulan Development Program, The Asia Foundation, the
the COVID-19 pandemic. address mobility challenges.
Cambodia Academy of Digital Technology, Singapore’s Serving People with
Disability and select Urban League chapters in the U.S., among others.
• Professional Training: We provided training through vocational and
apprenticeship programs to Service mechanics on the safe installation and
servicing of elevator equipment with live, virtual and on-the-job modules.
2022-23 CHALLENGE (currently underway)
32 student teams across 15 countries and territories are challenged to develop

new mobility solutions needed to address the impacts of climate change.
2022 ESG REPORT 31

Goal: Direct 50% of total global giving to STEM programs by 2025
In 2022, we continued to better align and direct our charitable giving – globally, regionally and locally – toward our focus areas of STEM learning
and vibrant communities, resulting in 51% of charitable giving to STEM programs, up 11% from 2021.
We are prioritizing the following actions:
1 2 3
Extending successful STEM Investing in more high school and Making more strategic grants to
collaborations into more countries university STEM initiatives to impact form closer, more effective partnerships
and regions to offer scholarships and additional students through the growth to advance our social impact and DE&I
other opportunities to underserved of our Made to Move Communities objectives and enable us to affect
and underrepresented populations program and grants positive change with causes we care
most deeply about
2022 ESG REPORT

32 32
Goal: Dedicate 500,000 cumulative colleague volunteer hours in support of vibrant

communities, STEM education and social equity efforts globally by 2030
As a key component of our social impact strategy, we call on our colleagues to dedicate time
to benefit local causes that matter most to them and their communities.
In 2022, we took an important step toward our 2030 goal, with colleagues
across all our Otis regions dedicating more than 43,000 hours total to
volunteer efforts. In 2022, we further empowered volunteering through
the following actions:
Developed and launched a centralized, global application for

1 colleagues to self-report their volunteer hours. This enables us to
quantify our collective impact in terms of hours volunteered.
Launched the 2 in ’22 campaign during the fourth quarter,

2 challenging all Otis colleagues to record at least two volunteer
hours in 2022 to help our communities thrive. The campaign
included a friendly competition among Otis teams, committing
to fund STEM grants to the Otis region and global function
with the highest levels of participation.
In 2023, we will offer additional programs and resources to make
Continued supporting our longstanding relationships volunteerism even more accessible to colleagues globally:
3 with regionally based community organizations such as the • Plan and launch a 3 in ’23 campaign, challenging colleagues globally to
Samarthanam Trust and the Special Olympics. volunteer a total of at least three hours of service, an additional hour over
last year’s program
• Identify and offer more virtual volunteer projects to expand participation,
regardless of the colleagues’ geographic location
• Develop and extend collaborations with new and existing community-based
organizations in need of volunteers to successfully carry out programming
2022 ESG REPORT 33

Employment policies, conditions and labor relations
We care about Otis colleagues’ well-being and, accordingly, we offer fair Otis also became a founding member of WorkWell Leaders, an Asia Pacific-
employment conditions. We follow local labor laws that generally address based organization that promotes healthy and thriving workplaces, with our
the length of the workday and the workweek, minimum wages, insurance President, Asia Pacific, Stéphane de Montlivault, holding the position of Chair
coverage of work-related accidents, severance pay and other employment of the Nominations Committee.
provisions. We conduct global pay analyses to ensure that our nonrepresented
We support Otis colleagues’ rights and are committed to adherence to local
colleagues are paid according to their abilities, responsibilities, qualifications,
laws regarding freedom of association and collective bargaining. We also have
performance and experience. In addition, we offer a wide range of benefits
relationships with trade unions and workers’ councils in the regions where
that include, depending on the country and Otis colleagues’ eligibility:
we operate. Approximately 64% of our workforce in the U.S. is covered by
• Medical, dental and vision coverage collective bargaining agreements. Outside the U.S., our colleagues are
represented by workers’ councils or statutory labor unions as may be
• Short-term and long-term disability coverage
customary or required in those jurisdictions.
• Life insurance and accidental death and dismemberment coverage
We also follow a strict harassment-free workplace policy and expect the same
• Retirement programs, including defined benefit pension plans from our business partners. To foster an inclusive workplace, we assign a
• Employee Assistance Program and wellness programs mandatory online training course on anti-harassment and anti-discrimination
to all newly hired salaried colleagues, requiring completion within 30 days
• Paid sick, bereavement, vacation, family and parental leaves of joining Otis.
• Certain voluntary benefits
2022 ESG REPORT 34

Talent hiring, development and retention
At Otis we are focused on attracting, developing and retaining talent. These efforts are implemented through many initiatives
ranging from hiring a diverse workforce that represents the communities we serve to offering various trainings, coaching,
sponsorship and mentorship programs, as well as promoting an inclusive and diverse culture to retain talent.
TALENT HIRING • In France, more than 60 mechanics of diverse backgrounds were hired in
Diversity in the mechanic talent pool is a particular challenge in the construction 2022 through the POEI (préparation opérationnelle à l’emploi individuel),
trades. Systemic and legacy barriers to hiring and retaining mechanics of a government-funded organization that partnered with Otis to train mechanics
diverse backgrounds mean our focus at Otis needs to be strategic. We offer with diverse and disadvantaged backgrounds.
and help ensure equal opportunities, and we advocate for a more diverse • In the Asia Pacific region, we began a women-focused mentoring program,
workforce through education, networking, apprenticeship and mentorship. engaging mentors and women field service mentees representing the
Examples of some of the initiatives we have undertaken in the past year are: territories and countries with women field colleagues in that region (i.e.,
Japan, South Korea, Australasia, HMT (Hong Kong/Macau/Taiwan) and
• In the U.S., we continued to collaborate with local affiliates of the Urban Southeast Asia). The program aims to support women in the field in the areas
League, where colleagues raised awareness for our industry and provided of skills development, career planning, networking and work-life balance.
counsel to prospective recruits for the National Elevator Industry Educational
Program (NEIEP), our industry’s registered apprenticeship program.
• In collaboration with the industry apprenticeship program, we led efforts
in the U.S. to establish a new Director of Diversity position. The new
Director will lead NEIEP’s DE&I programs, including outreach to underserved
communities, training for NEIEP instructors, interviewers and apprentices,
and the development and implementation of processes and initiatives
aimed at building a more diverse and inclusive workforce.
• e supported the establishment of a subcommittee on the efficacy of an
W
Apprenticeship Readiness Program in the U.S. to identify individuals from
underrepresented communities, train them on the basic skills needed to
succeed and offer direct-hire opportunities with a signatory employer.
2022 ESG REPORT 35

Talent hiring, development and retention (continued)
TALENT DEVELOPMENT
Colleague development is a key pillar at Otis, and we are continually
expanding our development programs to attract and retain talent. For example,
we launched an external coaching program for a select group of female talent
in the Asia Pacific region with strong engagement and positive feedback.
We also strive to empower our colleagues to share ideas, develop new skills
and be lifelong learners. One of our signature programs is Otis University,
a global program that builds leadership and functional capabilities in Sales,
Field, Engineering and Major Projects. Another program is our Employee
Scholar Program, a notable point of pride, through which Otis sponsors
colleagues to pursue degrees or certification programs.
Increasing diversity within our workforce is critical. As we continue our DE&I
journey, we remain focused on providing opportunities for all colleagues TALENT RETENTION
throughout the organization, and partnering with several organizations to
Tracking our colleagues’ attrition rate provides us a lens through which we can
develop and engage our talent. A few of those opportunities include the
assess the success of our workplace initiatives. We are proud of the progress
Career Communications Group’s Black Engineer of the Year Award and
made to limit attrition, which is a direct outcome of several initiatives and
Women of Color STEM Award. Through these organizations, we recognized
programs implemented by Otis over the past few years, including:
10 individuals for their accomplishments in technology roles and in the
community. Participation within external development programs dedicated • ffering skip-level meetings for identified talent to connect with
O
to people of color has remained steady, and we are beginning to see resulting the leadership team
acceleration in talent movement as about 29% of participants achieved a • Sponsoring key talent to participate in external development programs
lateral move or promotion by the end of 2022.
• roviding career coaching to colleagues with high-potential and early-watch
P
talent, especially those in a high-retention-risk category
The global attrition rate at Otis remains in the mid-single digits, as it has
been the past few years. Although we have seen an uptick in attrition since
the COVID-19 depressed rates of 2020, we believe our current retention
rate reflects overall strong Otis colleague satisfaction, positively impacted
by actions driven from our DE&I strategy.
2022 ESG REPORT 36

Governance & Accountability

We are operating in a new world – characterized by a consistent state of disruption and change – yet our Absolutes
of Safety, Ethics and Quality remain paramount to our business in all conditions.
Our reputation is priceless. Otis colleagues, customers, passengers and We believe that strong governance leads to superior business outcomes,
shareholders trust us because they know we do business the right way – the and our Board is constantly engaged on a wide range of matters spanning
ethical, lawful and honest way. We expect that everything we do and make business strategy and ESG-related topics. We have adopted company policies,
runs on a spirit of integrity, and that our Otis colleagues act ethically at all practices and procedures to reflect and implement this broad commitment.
times. And we believe that all of us own Quality, by delivering excellence
To learn more about corporate governance at Otis, visit the Otis website
across our production, installation, and maintenance and repair processes
to access: Governance Documents, Committee Charters and SEC Filings,
as well as sales, marketing and financial reporting. To create accountability,
including our 2022 Form 10-K and 2023 Proxy Statement.
we uphold leading standards for strong governance, ethics and integrity,
and we follow best practices implemented through strong internal controls,
consistent training and colleague engagement.
2022 ESG REPORT 37

Goal: Award at least 20% of U.S. supplier spend annually to diverse suppliers
We work to prioritize diversity within our organization to ensure that our colleagues are representative of the
customers and communities we serve – and we seek to do business with suppliers who share this commitment.
In 2022, we surpassed our goal of directing 20% of our spend to diverse U.S.
suppliers – our second year in a row exceeding the goal. Contributing to
the increase in diverse supplier spend, this year we increased the number
of diverse suppliers in our roster by 10%.
We define diverse suppliers as those that are at least 51% owned by an
individual or group that is underrepresented (minority-, women-, veteran-,
LGBTQ+ or disability-owned), a small business and/or one that is operating
in an economically disadvantaged location based on U.S. Small Business
Administration definitions.
We strive to continue this trend in 2023 and beyond and will advance
this spend goal by:
Raising awareness Adding more diverse Including qualified

through internal suppliers to our diverse suppliers in
communications supplier database our bid processes
sessions
We are also strengthening our relationships with our existing key strategic
diverse suppliers by expanding our scope of services and products with them.
We are a member of organizations such as the National Minority Supplier
Development Council and the Women’s Business Enterprise National Council
in support of advancing and developing diverse businesses.
2022 ESG REPORT 38

Corporate and ESG governance
Like our Otis colleagues, our Board is guided by The Otis Absolutes and sets the tone
for good governance practices.
Our diverse Board is composed of experienced global corporate executives Our governance structure reflects processes from across industries that we
with broad and deep multi-industrial and consumer industry knowledge, and believe provide the basis for effective Board oversight.
financial expertise. These specific skills and attributes reflect the criteria that
Through our corporate governance structure, we exemplify industry-leading
the Board has identified as most relevant and desirable to support and guide
governance practices:
Otis in excelling now and into the future.
• Annual election of directors
Board diversity is actively considered by the Nominations and Governance
Committee during its recruitment and nomination process, and our current • Robust independent Lead Director role
Board composition reflects such efforts. Six out of 10 (60%) Board members • Proxy access
are diverse: 40% are women, 40% are ethnically/racially diverse and 40% of
Board leadership roles* are held by women, including the Board Chair.
• hareholders can call special meeting (15% threshold) and act by
S
The Nominations and Governance Committee itself is 60% diverse, with written consent
three of five members – including the Committee Chair – being women, • Majority voting for directors
ethnically/racially diverse or both.
• No supermajority voting provisions
• No stockholder rights plan or poison pill plan
60%
Board members
40%
Board members
40%
Board members
are diverse are women are ethnically/racially
diverse
2022 ESG REPORT *Leadership roles are defined as the Chair of the Board, Lead Director and the chairs of each committee. 39
Corporate and ESG governance (continued)
Underscoring the importance of good corporate citizenship, our Board and representing multiple functions: Communications, Engineering, Environment,
its committees engage in extensive review and oversight of ESG-related Health & Safety, Human Resources, Investor Relations, Legal, Quality &
topics. The Nominations and Governance Committee has primary oversight Continuous Improvement, and Supply Chain and Sustainability. An internal ESG
over most ESG topics, including the Otis ESG strategy and governance model, Working Group, composed of SMEs, assists the ESG Council in developing and
health and safety, sustainability and climate-related risks and opportunities, effectuating the company’s ESG strategy. Both the council and working group
DE&I, corporate social responsibility, and charitable giving. The Committee meet frequently, with the ESG Council reporting regularly to the CEO.
ensures the Board and committees include members with requisite ESG
The Compensation Committee has authority over the incorporation of ESG
expertise, including through prior ESG experience and continuing education.
goals into our executive STI program, pay equity, major benefit changes and
It also pursues ESG oversight through the integration of governance best
workforce talent. The full Board retains oversight of business objectives and
practices into the boardroom and shareholder engagement.
strategies, including those related to ESG topics, significant risks and public
Additionally, the Nominations and Governance Committee receives reports policy issues (such as the ongoing conflict between Russia and Ukraine), key
from members of the company’s ESG Council composed of senior leaders talent succession planning, culture and engagement, and investor relations.
ESG Governance Model

• Integrated, cross-functional initiative NOMINATIONS AND Areas of oversight include, but are not limited to:
GOVERNANCE COMMITTEE • ommunity giving, volunteerism and
C
• SG strategy is aligned with our culture, values,
E community engagement
and business strategies and objectives
• Corporate governance
CEO
• bjectives established in key areas, with continued
O
• DE&I
discussion around longer-term approach • Ethics and compliance
• Health and safety
ESG COUNCIL
• he ESG Council and ESG Working Group
T • Investor relations
meet frequently, a demonstration of our
• Supply chain
commitment to developing and maintaining
a successful ESG program ESG WORKING GROUP • ustainability and climate-related risks and
S
opportunities
2022 ESG REPORT 40

DE&I accountability
To advance accountability and transparency for our DE&I progress, in • Sharing best practices
November 2021, Otis established the DE&I Advisory Group composed of
four permanent members (our Chair, Chief Executive Officer and President;
Executive Vice President & Chief People Officer; Vice President & Chief
Communications Officer; and Director, DE&I), three to four members who
rotate annually, representing cross-functional and cross-regional areas and
one Board member. The group meets three times per year and is assisted
by DE&I councils at the regional and local level. The DE&I Advisory Group
is responsible for:
• Setting Otis DE&I strategy and priorities
• Challenging Otis and our leaders to achieve more
• Advocating for strategic initiatives and monitoring their progress
• Driving accountability for outcomes across regions and functions
• Bringing in outside perspectives and reviewing regional/functional progress
Executive compensation
We are committed to executive compensation practices that drive performance, was expanded to include two ESG performance multipliers: progress toward
mitigate risk and align the interests of our executives with those of our achieving gender parity across our executive leadership population by 2030
shareholders. Our executive compensation program is designed to ensure that and reducing Scope 1 and Scope 2 GHG emissions by 50% by 2030. Each
a significant portion of pay is variable and based on a mix of company and performance multiplier can increase or decrease STI payouts by up to 5%,
individual performance. We also align our executive incentive compensation for a total adjustment of up to 10%.
with our ESG strategy. In 2022, our executive STI compensation program
2022 ESG REPORT 41

Cybersecurity, data privacy and intellectual property
CYBERSECURITY DATA PRIVACY

We are committed to developing products and services that are cybersecure, As a global company, we process and share personally identifiable information
and we are diligent in monitoring the threat landscape to protect against from the many countries and territories in which we do business, taking the
cyberattacks. To that end, we have an extensive cybersecurity governance utmost care in the way we handle and protect personal data. We have a global
structure in place. Cybersecurity risks are overseen by the Audit Committee, privacy organization, supported by the highest levels of leadership. We evaluate
and our Cybersecurity Program is directed by both our Chief Digital Officer our processing activities to ensure that we apply privacy principles, including data
and Chief Information Security Officer. Our Cyber Governance Council and minimization and privacy by design. We rely on recognized transfer mechanisms,
Steering Committee are made up of senior management at our corporate such as Standard Contractual Clauses and Binding Corporate Rules (BCRs). Otis
headquarters and regional offices, as well as our CEO, to ensure visibility and obtained regulatory approval in the European Union for BCRs in November
alignment with the business. 2021 – a certification provided to fewer than 200 companies worldwide –
representing formal validation of our program by some of the strictest privacy
We maintain a robust Cybersecurity Incident Response Plan, have established
regulators in the world. We follow the same strict standards for privacy
a global Security Operations Center to support enterprise visibility to cyber
compliance throughout our global operations, helping us to comply with local
incidents in real time and periodically conduct table-top exercises to test the
legal obligations more easily and adapt quickly when new laws come into
plan. We have cybersecurity insurance and regularly review our policy and
effect around the world.
levels of coverage based on current risks. All salaried colleagues in cybersecurity-
related roles are required to have baseline and operational certifications. We INTELLECTUAL PROPERTY
conduct several cyber-related internal audits, as well as a monthly third-party
Innovation is a fundamental characteristic of our history and is central to our
scan of our network. We also encourage our colleagues, contractors and
strategy, as we value investment in research and development (R&D) and in our
customers to report any security vulnerabilities uncovered while working
strategic initiatives. We have approximately 1,200 engineers globally, with
with us, and we investigate any credible reports.
increasing focus on digital initiatives, software, design of the user interface and
the user experience. As the Otis brand is recognized around the world for quality
products and services, we protect our investment in technology and our brand
through a combination of patents, trademarks, trade secrets, confidentiality
policies and active monitoring programs. We also provide regular training to
our colleagues on the importance of protecting our trade secrets.
2022 ESG REPORT 42

Quality
Quality is an Otis Absolute and enables safe products and installations With respect to our suppliers, we have quality processes and controls
while instilling trust from our customers and passengers. We all have a role embedded in our Supplier Code of Conduct, as explained in more detail
to play in providing outstanding quality, from engineering, manufacturing, on page 44.
installation and service to selling, marketing and reporting our financials.
This requires everyone to work together with the same commitment and
focus across the entire organization. We take full responsibility for the High-quality service
workmanship and service we provide, act passionately to eliminate quality
issues at their source, respond quickly to resolve any problems and satisfy
Mobilizing in the face of natural disaster
our customers – while never sacrificing quality under any circumstance. In the wake of Hurricane Ian in late September 2022, we heard stories
To enable us to do so, we have implemented a strategy tailored to every level of amazing teamwork throughout Florida when, after ensuring that our
of our organization, looking at Otis in a holistic way to determine how to operate colleagues were safe and accounted for, our teams quickly jumped into
more effectively, efficiently and sustainably. We focus on four specific areas: action to help local customers.
Twenty-four hours after the storm, 30 members of the Otis team had
Internal quality: Each manufacturing site or core functional group has strong
surveyed and assessed damage on units in the area, and our Service
key performance indicators (KPIs) or quality measurement systems to track
Center and the supply chain team identified critical components to be
performance against internal targets. We strive to identify and resolve issues
shipped in bulk to bring our customer sites back to normal operation.
before our customers experience them to drive customer loyalty and a
Within 10 days, we had performed over 500 service calls and
positive perception of Otis.
communicated with more than 1,000 customers. One example of this
Field service/aftermarket quality: We measure field turnbacks and callbacks, mobilization involved a local hospital, which was managing critical life-
look at additional materials or time needed for a particular installation, and saving efforts, while dealing with power outages and other damage
determine field service concerns and quality resolutions, such as additional from the storm. At around 4:30 p.m., we received a call from the hospital
training, new system management or a different execution. alerting us to a major problem with the only elevator providing access
Quality Management System: Our quality dashboard provides a core set of to the helipad. An Otis mechanic promptly diagnosed the issue and
KPIs focused on process and product quality, allowing teams to measure and informed the team that the elevator required a new drive to be
react around those KPIs and to determine the required infrastructure. operational. The Regional Field Operations Management Team located
the drive required for the repair and, with additional help from Southwest
Otis Performance Excellence (OPXL): Our continuous improvement team leads
Florida colleagues who drove for three hours to deliver the parts to
initiatives to build a strong culture in our manufacturing and business process
the jobsite, the elevator was fixed by 11 p.m.
groups that engage and empower each colleague to lead with innovation,
everyday problem solving and deliver a world-class experience for our customers.
2022 ESG REPORT 43

Supplier Code of Conduct
Suppliers are a critical part of our business and, as such, are required to abide
by our Supplier Code of Conduct. Available in 28 languages on otis.com, We require our suppliers to:
the Code holds our suppliers accountable to the same standards we establish • Provide training to their
for ourselves, starting with our Absolutes of Safety, Ethics and Quality. employees and conduct
Specific to Safety, we require our suppliers to: reasonable due diligence to
ensure compliance with the
• nsure a safe and healthy work environment for suppliers’ employees
E Supplier Code of Conduct
and visitors to their sites
• Ensure timely reporting of both
• Comply with all applicable EH&S rules actual and suspected violations
• Provide products and services with safety as a key guiding principle • Promote an environment where
Specific to Ethics, we require our suppliers to: legal and ethical issues can be
• espect all human rights (including rules prohibiting child labor) and
R raised without fear of retaliation,
fair labor practices including making reporting
channels available to colleagues
• espect anti-corruption (including anti-bribery), fair competition and
R
and business partners
antitrust rules
• Protect information and respect intellectual property and other rights
• Maintain accurate records
Per our Otis Absolutes and the Supplier Code of Conduct, all Otis colleagues
For example, to keep compliance top of mind, we send our suppliers and suppliers are required to report actual or suspected violations of applicable
an annual letter reminding them of the obligations established in our laws, regulations or policy, as well as The Otis Absolutes and our Supplier Code
Supplier Code of Conduct, including our policy on business gifts. of Conduct, using any of the reporting channels available on otis.com and
described on page 47. Discipline and/or corrective actions are taken as
Specific to Quality, we require our suppliers to:
needed. We also conduct on-site audits of certain suppliers and expect our
• ave quality assurance processes to detect, notify Otis and correct
H business partners to cooperate in comprehensive and fair investigations, with
defects to ensure delivery of products and services that meet all participation of their own suppliers, as necessary. They know we expect them
contractual, legal and regulatory requirements to correct any identified non-conformance, with potential termination of our
• roperly complete all inspection and testing requirements performed
P business contract for lack of compliance.
by appropriately authorized and qualified individuals
• Complete required certifications accurately
2022 ESG REPORT 44

Human rights and anti-human trafficking in the supply chain
We are committed to protecting human rights and to reducing the risk of through the means of surveys via an enhanced risk-based approach, and
human trafficking at Otis and in our global supply chain, and we demand the actively leveraging our membership in the Responsible Labor Initiative (RLI).
same of our suppliers. We have expressed our uncompromising commitment To advance our program, we expanded our training from our procurement
to human rights in a statement that applies to both our Otis colleagues and department to conduct salaried staff training. Looking forward, we will
suppliers, and we have adopted an anti-human trafficking policy and program continue to monitor the emerging regulatory landscape to ensure that Otis
designed to detect, mitigate and deter human trafficking and forced labor is well positioned to detect, mitigate and deter human trafficking.
in our supply chain. The program includes risk identification, assessment,
mitigation and due diligence activities. We require our suppliers to respect all
human rights and fair labor practices and to comply with the principles of the
Supplier Code of Conduct and applicable laws – for example, laws prohibiting Our Uncompromising Commitment to Human Rights at Otis
human trafficking and child labor, including international standards governing
the Worst Forms of Child Labor. Anti-Human Trafficking Policy Governing the Otis Supply Chain
In 2022, we completed several actions, which included submitting our

AHT Policy and UK and Australia Modern Slavery Statements
United Kingdom and Australia Modern Slavery Statements to the applicable
regulatory agencies, continuing the due diligence process of our suppliers
2022 ESG REPORT 45

Conflict minerals in the supply chain
Otis is committed to contributing to the elimination of human rights violations

associated with conflict minerals and, as such, has adopted a Conflict Minerals Through our Conflict Minerals Program, our commitments are to:
Program developed to comply with Dodd-Frank Act specifications. We also • Direct suppliers to our position on conflict minerals
adopted the Responsible Minerals Initiative (RMI) recommended approach • Encourage our suppliers to join us in our commitment and to source
to determine the Reasonable Country of Origin (RCOI) through Chain of from conflict-free smelters
Custody by focusing on smelters. RMI has a program called the Responsible • Identify suppliers at risk of tantalum, tin, tungsten and gold (3TG)
Minerals Assurance Process (RMAP), which validates that the smelter facilities sourcing violations and encourage corrective actions if needed
have due diligence procedures around conflict minerals and that they are
• Participate in industrywide initiatives, such as RMI, which provide
making their best efforts to source from certified mines.
standard and useful tools for conflict minerals
In addition, we file an annual Conflict Minerals report with the U.S. Securities
and Exchange Commission (SEC), which details our due diligence efforts to
ensure that they comply with our policy and are sourcing minerals responsibly.
For Fiscal Year 2021, Otis conducted a reasonable country of origin inquiry
by sending surveys to 378 suppliers estimated to represent over $2.5 billion
in spend during 2021 (over 70% of our direct product spend). Upon such
additional diligence, we took appropriate action when determined to be
needed. A description of this detailed process is provided in our Conflict
Minerals Disclosure Report filed in May 2022. These results meet the intent
of the Dodd-Frank Act and are consistent with previous years’ SEC filings. For
Fiscal Year 2022, we are following the same approach for the due diligence
process, and we expect to submit the SEC filings in May 2023.
Over
378
supplier survey
Representing over
$2.5B 70%
of our direct
recipients in spend in 2021
product spend
2022 ESG REPORT 46

Ethics and integrity
Ethics, one of our Otis Absolutes, is embedded in our culture, guiding us to do the right thing and helping
to ensure our colleagues understand our expectations. Doing business the right way is simply who we are.
DUE DILIGENCE / SCREENING INDEPENDENT AND THOROUGH INVESTIGATIONS

We conduct appropriate due diligence and screening of the third parties We conduct independent and thorough investigations into every specific
with whom we do business, leveraging independently provided data to help and credible allegation of a violation of law, policy or our Otis Absolutes in
identify and resolve potential risks that may be discovered. a timely manner. The overarching intent of our investigation process is to
understand the facts, to gain insights needed to apply corrective actions,
SPEAKING UP such as new controls, awareness training or additional process steps for
Our colleagues are empowered to speak up if they suspect wrongdoing. prevention, and to hold one another accountable for misconduct. Senior
They can report concerns directly to a supervisor, a manager, Legal, Human management monitors investigations to ensure that disciplinary actions are
Resources or one of our approximately 120 Ethics & Compliance Officers fairly and consistently applied across Otis and that significant matters are
and professionals, over 90 of which are locally based. For those wishing reviewed with the Board. We ensure that those who raise concerns or
to report indirectly or anonymously, we have a third-party-managed 24/7 report wrongdoings can do so without fear of retaliation. Otis vigorously
hotline and an online web-based form which are available internally and investigates any allegations of retaliation, and colleagues found to have
externally on otis.com and described fully on our dedicated site. They engaged in retaliatory conduct are subject to discipline up to termination.
are summarized below.
By phone By online submittal By email By mail

(hotline) (webline)
+1-833-833-3001 in the Via link on otis.com [email protected] Otis World Headquarters
United States, Canada and 1 Carrier Place
Puerto Rico, or from outside these Farmington, CT 06032 USA
areas with an AT&T access code Attn: Global Ethics &
Compliance Office
2022 ESG REPORT 47

Ethics and integrity (continued)
ETHICS TALK, COMPLIANCE TRAINING MODULES

AND ETHICS EVENTS
To raise awareness of policy requirements and compliance risks, we focus on
leadership communications, online and in-person training, and initiatives such
as Otis Ethics Talk.
Our Ethics Talk program, with a participation rate of over 99%,

provides every supervisor with workshop training materials to
discuss ethics-based scenarios and problem-solving techniques
with their team. The training presentation materials are tailored
to the team’s work or function.
We celebrated Global Ethics Day across Otis, with each region leading
activities focused on the importance of speaking up and the role that our
Absolutes play at Otis.
To maintain our culture of integrity and trust and to drive compliance
with our Absolutes and company policies, we conduct several Ethics &
Compliance-led internal audits each year, including those focused on anti-
bribery, anti-corruption and antitrust. In addition, we provide online risk-based Our completion rate for targeted quarterly online ethics and compliance
compliance training on a quarterly basis on topics such as human rights, training for salaried colleagues was 96% in 2022. And more than 97% of
modern slavery, anti-human trafficking, antitrust, conflicts of interest, our salaried colleagues have attested, through an annual certification in 2022,
protecting company data, cybersecurity, data protection, anti-harassment, that they have read, understand and are committed to complying with The
anti-discrimination, anti-corruption and anti-bribery. New salaried colleagues Otis Absolutes and Otis policies.
are assigned a suite of required online courses geared to key compliance
risk areas that are to be completed within the first 30 days of employment
at Otis. In addition, new salaried colleagues are assigned a custom-built
course called Living the Absolutes, Today and Everyday that introduces our
company’s values and commitments to ethical practices.
2022 ESG REPORT 48

Stakeholder engagement
At Otis, we are committed to understanding stakeholder concerns and working business-sustainability ratings platform that is heavily relied on by our
for the global good of our colleagues, customers, passengers and society. customers, upgraded our sustainability rating from Silver to Gold for our
We regularly consult with our stakeholders on economic, environmental ESG strategy, placing us in the 96th percentile of all evaluated companies.
and social topics.
COLLEAGUES
INVESTORS
We believe that engaged colleagues deliver better service to our customers.
Our Investor Relations team fields inquiries from Otis shareholders on our We measure engagement by conducting colleague surveys twice yearly.
ESG objectives and performance, and the Corporate Secretary has organized The results, which are reported to our Board and management, help us
annual shareholder calls focused on ESG, led by our CEO and our Lead Director. assess how colleagues feel about working for us. We use the survey results
As an example, in fall 2022 Judy Marks and our Lead Director, John Walker, to develop action plans to address areas of concern. The engagement
invited investors representing approximately 35% of shares outstanding to surveys, which anonymize the data, cover topics such as safety, ethics,
participate in ESG related conversations. Their discussions included our Otis belonging, quality, company prospects, inclusion, empowerment,
culture, health and safety programs, ESG objectives and progress. They also accountability and managerial effectiveness.
addressed questions, including those related to GHG emission reporting
and targets, Scope 3 emission reporting feasibility assessment, Environmental
Product Declarations (EPDs), supply chain, executive compensation structure
and pay equity. Colleague Engagement Survey*
CUSTOMERS
How happy are you
working at our company? 74%
We are in constant contact with our customers, monitoring their changing
needs and keeping a pulse on market priorities. We also keep track of our Colleague safety is a top
priority at our company.
89%
top customers’ key business priorities to support their progress. We capture
the voice of our customers through our Customer Advisory Board and our I can raise ethical concerns without
annual customer survey. The Customer Advisory Board consists of nine clients fear of retaliation. 78%
from around the globe and meets quarterly. We use these meetings to
I have the support I need 72%
collect feedback, answer questions and share important business updates. to do a quality job.
We also partner with our customers to enable them to be more sustainable,
as we become more sustainable ourselves. Our efforts since becoming an *Percentage of colleagues surveyed who responded favorably. Survey results are from September 2022.
independent company have been recognized. In 2022, EcoVadis, a trusted
2022 ESG REPORT 49

Appendix
ADDITIONAL INFORMATION (ALPHABETICAL)
EH&S AUDITS AND REVIEWS EH&S MANAGEMENT SYSTEM

Both internal and external audits and reviews are routinely performed to Otis has implemented and maintains a management system that is based on
ensure Otis operations meet internal and external expectations. These reviews ISO 14001, Environmental management systems, and ISO 45001, Occupational
are critical as they continually enhance knowledge of operating requirements. health and safety management systems. ISO 14001 is a set of standards
When gaps are revealed through an audit, corrective actions are developed designed to improve resource efficiency and waste reduction, while reducing
to address them and tracked to closure. Certain Otis locations in Europe are cost. ISO 45001 is a set of standards designed to reduce injuries and illness,
subject to the European Union (EU) Energy Directive and file submissions to both physical and mental. The EH&S Management System helps support the
regulatory agencies. Examples of some of these audits and reviews are: implementation of the following:
• orporate energy assessments are performed at least every three years,
C • Structure and responsibilities
as required by our EH&S Management System. • Environmental programs
• ompliance, Focused Field Audits and Assurance Review program
C • Targets and objectives
audits are part of our internal EH&S audit program and are performed
at least once every four years. • Training and awareness
• atality Prevention Audits are conducted twice annually with each

F • Data compilation systems
field colleague. • Auditing and annual program evaluations
• xternal third-party data verification is conducted as part of the CDP
E
In addition to achieving our goal of 100% of our factories being ISO 14001
reporting process.
certified in 2021 (see page 26), 12 of our 17 manufacturing facilities are
• dditional third-party audits are done for facilities that maintain ISO 14001
A ISO 45001 certified. Ten of our facilities have also achieved ISO 50001
and/or ISO 50001 certification. certification, the global energy management systems standard for
establishing, implementing, maintaining and improving energy management.
2022 ESG REPORT 50

Appendix
ADDITIONAL INFORMATION (CONTINUED)
EMPLOYEE RESOURCE GROUPS (ERGs)

Worldwide, more than 2,200 colleagues and allies participate in over 20 ERGs, ERGs function with business proposals and continual goal setting and are
each dedicated to fostering a diverse and inclusive work environment through supported through executive participation and funding. Otis ERGs play an
engagement that positively impacts business outcomes. These colleague-led important role in helping people outside our organization – particularly
groups provide mentoring, career guidance and mutual support for those who prospective colleagues – understand what Otis stands for and who we aspire
share the affinities and concerns of a common race, ethnicity, gender, gender to be. We continue to expand our ERGs and recently launched a chapter of the
identity, sexual orientation, disability, generation, veteran status and more. Otis Women’s Network in the Middle East. We also rebranded the All Abilities
ERG to Otis Thrive, which focuses on mental health, well-being, colleagues
with disabilities and caregivers. This ERG is active across the U.S. and Latin
America and plans to continue growing globally.
Aloha: Voluntary, women-led Gen4: To promote the active NTN: To create a seamless Otis TOGETHER: To provide Pride: To empower and inspire Women in Technology:
group in India to foster a diverse, management of generational transition for new talent joining a safe and inclusive work members of the LGBTQ+ To connect the creative,
inclusive workplace, aligned with diversity, as well as promote Otis by offering an improved environment for all LGBTQ+ community throughout Otis by innovative and hardworking
organizational mission, values good practices within Otis new hire experience colleagues and their allies driving changes in company women in the STEM field
and goals and to celebrate an inclusive policy and cultures at Otis
Hola: To promote Hispanic Orgullo Otis: To raise workplace that does not tolerate
Elevar: Provide safe space culture and professionals awareness about the LGBTQ+ aggression or discrimination Ubuntu: Focused on Women Otis Southern Zone:
for LGBTQ+ colleagues and through networking, cultural community throughout Otis, irrespective of sexual orientation, colleagues of African descent For all women (of all levels)
allies to share interest, spread diversity and community providing support, emphasizing gender identification or in Latin America. Ubuntu is an to come together to focus on
awareness, bring knowledge, outreach our contributions, enhancing gender expression ancient African word meaning progressive initiatives to further
empower others and our voice, and driving changes “humanity to others.” It also develop women in the Southern
brainstorm together no matter Momentum: To accelerate in company policies and culture Otis WIN: To serve as a means “I am what I am Zone of Latin America
how each person may identify the development of a resource to promote female because of who we all are”
connected community of Otis Thrive: To advocate professionals’ advancement
leVets: To provide veterans
E Black professionals within Otis for members of the mental throughout Otis WAVE: To support and
and non-veterans an outlet for focused on promoting DE&I health, disability and caregiver promote Otis’ Asian & Pacific
collaboration and networking community while continuously Otis Women’s Network: Islander professionals through
Mujeres empoderadas: To focusing on well-being To support and promote the mentorship, community
Forward: To promote the serve as a resource for women advancement of women outreach and networking
retention and advancement to advance their career at Otis within Otis through mentoring,
of women within Otis through education, training, supporting personal and Women Empowerment: To
Field Operations mentoring and outreach professional development, support the development of
and simply being there for leadership in women at Otis
one another
2022 ESG REPORT 51
Appendix
ENVIRONMENTAL PRODUCT DECLARATIONS

Otis currently has 11 EPDs, and we remain committed to publishing EPDs Our EPDs are published in accordance with ISO 14025, which quantifies
for 100% of our next-generation elevator and escalator product platforms. environmental information on the lifecycle of a product, and each EPD
EPDs present transparent, verified, and comparable information about the has a precise breakdown of the product’s materials. Each also considers
environmental impact of products and services throughout their lifecycle. compliance with the EU’s REACH (registration, evaluation, authorization and
They communicate the environmental performance or impact of products or restriction of chemicals) and ROHS (Restriction of Hazardous Substances in
materials over their lifetime, which architects, designers and engineers find Electrical and Electronic Equipment) regulations. And, each includes a lifecycle
valuable. In addition, customers use EPDs to compare the impacts of various assessment that evaluates energy usage, waste generation and air emissions
materials and products to help them select the most sustainable option. in the following phases:
Our portfolio of EPDs covers the majority of units sold in the EMEA and North • Upstream: Raw material supply, transport and outsourced manufacturing
America regions, as well as the high-rise and escalator markets where EPDs • Core: In-house manufacturing
have become an integral part of building equipment choice and integration
process. Within the developed world, EPDs support the success of our • Downstream: Transport and installation, use or operation, and
business and are a competitive advantage, allowing us to track and optimize end-of-life treatment
the impact of our products and market our transparency related to carbon
We have identified raw material extraction and energy consumption during
emissions. Within the emerging world, our EPDs focus on infrastructure,
the elevator’s usage phase as the most relevant product-related environmental
as customer pull is strongest within that vertical.
impacts. The downstream use (operational) phase is the longest portion of
the lifecycle, so energy consumption is one of the main environmental impacts.
EPDs signal a manufacturer’s commitment to measuring and reducing
The published EPDs and expected Scope 3 category 11 inventory will be
the environmental impact of its products and services and report these
used as a baseline of our products’ environmental performance. They will
impacts in a hyper-transparent way.
Source: International EPD System
support informed decisions about our future product design to ensure that
we continue to reduce the environmental impact of the products we offer.
2022 ESG REPORT 52

Appendix
HAZARDOUS WASTE INDUSTRIAL PROCESS RECYCLING

In 2022, Otis generated approximately 316,000 pounds of hazardous waste Over 98% of factory-generated industrial process waste is recycled. We are
from production facilities, which amounts to less than 1% of our total industrial focused on sustainable raw material procurement, use and disposal, and on
waste generated. expanding the use of reusable packaging.
We define hazardous waste according to the environmental regulations in the We are continuing to implement policies and procedures within our operations
jurisdiction of the facility. Over the years, we have limited or eliminated the use to ensure the sustainable procurement and use of all raw materials in our
of substances of concern during product development and manufacturing. factories, integrating environmentally preferred purchasing practices and
Our hazardous waste reduction approach includes efforts to minimize the use providing training and raising awareness for our factory colleagues.
of target materials in products and reduce colleague exposure to chemicals to
levels that do not require the use of personal protective equipment. We achieved
our previous hazardous waste reduction target in 2020. Given the already low
percentage of hazardous waste we create, we have not set a new target.
HAZARDOUS WASTE GENERATED FROM PRODUCTION FACILITIES*
Thousands of pounds, except

2019 2020 2021 2022
% hazardous waste
Hazardous waste 239.8 207.8 262.2 315.6
Total industrial waste 43,195 30,886 33,238 36,348
% Hazardous waste 0.6% 0.7% 0.8% 0.9%
*Environmental data reflect adjustments to remove Russia business (which has been divested) from all years shown in this table.
2022 ESG REPORT Environmental data is measured annually from December 1 through November 30. 53
Appendix
PRODUCT ENHANCEMENTS AND DIGITALIZATION EFFORTS
Mechanic safety
Gen360: Our most advanced elevator, Gen360, is equipped with in-car quick decisions and minimize their exposure to hazards during troubleshooting.
maintenance functionality, which keeps the mechanic out of potentially Before the Tune app, troubleshooting noise and vibration issues required the
unsafe conditions. A foldable, in-ceiling platform allows maintenance use of complex data collection systems and time-consuming processing by
operations to be performed safely from within the car rather than on top of engineering experts. In 2022, we introduced a new capability into the Tune
it. And, depending on local regulations, it eliminates the need for a refuge app that allows the mechanic to measure the brake stopping distance just by
space above the car and the protrusion on the roof for a flat roof design. putting the phone inside the car. With the prior procedure, mechanics had
In addition, this product includes electronic safety systems that replace to go to the machine room, remove sheave guarding and measure sheave
electromechanical safety devices. This further enhances mechanic safety rotations to determine the brake stopping distance. With the new brake
during maintenance, as the digital safety system can also prevent the elevator inspection functionality within Tune, it is much easier and safer for mechanics
from moving when someone is performing maintenance in the hoistway. to ensure that brakes are operating correctly.
The electronic safety system also minimizes the likelihood of passenger
Environmental
entrapments during an elevator malfunction.
Compass 360: Our proprietary Compass 360 destination management
Tune app: The Tune app is part of a suite of proprietary apps that are available
system groups passengers by their desired destination and directs them to
to our field professionals. This app was developed to leverage the internal
an assigned car that minimizes waiting and ride time. The system’s algorithms
microphone and accelerometer of the mechanic’s smartphone along with a
anticipate traffic demand within a building and improve traffic flow. By doing
library of elevator parameters. The smartphone can be placed on the floor
so, we are able to reduce the number of trips or increase the throughput in
of the elevator cab or on an escalator handrail to diagnose the root cause of
a building, reducing the carbon footprint of our customers.
noise and vibration problems within seconds, empowering mechanics to make
2022 ESG REPORT 54

Appendix
PRODUCT ENHANCEMENTS AND DIGITALIZATION EFFORTS (CONTINUED)
Environmental emissions through removal of extraneous travel to and from customers. In

2022, we avoided more than 17,000 running on arrivals. As of the end of 2022,
Otis ONE: Otis’ IoT service platform automatically collects elevator data
we had over 300,000 Otis ONE units in our maintenance portfolio, including
and transfers it to the cloud, helping to improve the customer experience
units under warranty. These are part of the 35% of our connected portfolio.
and reduce service disruptions. The data provides continuous visibility of the
units in our maintenance portfolio and is leveraged to improve predictive Otis ONE helps us discern when to conduct maintenance and to identify when
maintenance algorithms. With the deployment of this connected product, we an issue requires an on-site repair. This in turn reduces unnecessary visits, cost
have experienced reductions in unnecessary service calls. This has reduced fleet to the customer and fleet GHG emissions.
IoT in action
Problem: Question: Goal / Outcome:

Maintenance issue Do we need to send out Maximize efficiency, Lower
with an elevator a mechanic (roll a truck)? reduce down time, fewer emissions
unnecessary truck rolls
MAINTENANCE CALL (no remote technology) MAINTENANCE CALL (using remote technology)
1 Truck rolls out 1 Otis conducts remote diagnostics to understand the problem
2 Mechanic arrives at building to assess the problem 2 a) The problem can be fixed remotely
b) The problem can be fixed by the building staff
c) Truck rolls out usually knowing what tools and parts are necessary for a repair
3 Mechanic speaks to building staff, locates the problem, determines 3 Mechanic fixes the problem
the proper tools and/or parts needed, all of which increases downtime
4 Mechanic fixes the problem
2022 ESG REPORT 55

Appendix
PRODUCT ENHANCEMENTS & DIGITALIZATION EFFORTS (CONTINUED) Customer Experience
Environmental eView / Otis ONE multimedia: Otis offers multimedia subscription options
with additional voice, data and video digital services to customers leveraging
ReGen drive: Our ReGen drive feeds electrical energy back into the building
our IoT technologies. Our in-car display – eView – streams live, customizable
power grid every time the load is going downward. By utilizing the braking
infotainment to passengers and can connect them to OTISLINE, our 24-hour
phase to generate electricity that can be used to drive other elevators or for
service call center, during an emergency. This system also meets accessibility
other equipment in the building, we enable cost savings and lower net
requirements to guide hearing or speech impaired passengers during
electricity consumption. Energy efficiency is increased by up to 75% compared
emergency situations.
to conventional hydraulic units, lowering overall building operating costs and
delivering significant annual savings to building owners and tenants year after WATER USAGE
year during the life of the elevator. ReGen drives help to meet or exceed
In 2022, Otis used 42.3 million gallons of water, which included 4.1 million
established worldwide standards. The compact modular design of the ReGen
gallons withdrawn from well sources. We recycled approximately 1 million
drive can help meet customers’ sustainability targets because of its ability to
gallons for nonpotable reuse. We discharge only sanitary wastewater, which
retrofit old installations and decarbonize existing buildings.
is treated at the municipal level.
Yearly Energy Use Estimates We use minimal water in our manufacturing processes, with primary usage
KwHr / Yr attributable to sanitary purposes within our facilities and offices. Since 2015,
Otis has been at the our water consumption has declined by 40%. Our goal going forward is
~35% forefront of the industry to maintain our existing water usage levels.
reduction
by including ReGen drives
~55% as a global standard
reduction TOTAL VOLUME OF WATER CONSUMED
product configuration.
~75% Millions of gallons 2019 2020 2021 2022
reduction This substantially reduces
the environmental impact Water consumed* 44.5 43.0 40.5 42.3
during the use phase of

Hydraulic Geared Gen2 Non- Gen2
our product. *Includes production facilities and large offices only.
Environmental data reflects adjustments to remove Russia business (which has been divested) from all years
System System ReGen System ReGen System shown in this table. Environmental data is measured annually from December 1 through November 30.
2022 ESG REPORT 56

Appendix
EEO-1 TABLE
2021 U.S. EMPLOYMENT DATA*
NON-HISPANIC OR LATINO
HISPANIC OR LATINO
Male Female
JOB OVERALL
CATEGORIES Native American Native American TOTALS
Black or Hawaiian Indian or Two or Black or Hawaiian Indian or Two or
African or Pacific Alaska More African or Pacific Alaska More
Male Female White American Islander Asian Native Races White American Islander Asian Native Races
Executive/Senior Officials &

4 0 47 4 0 6 0 0 37 5 0 6 0 0 109
Managers
First/Mid Officials & Managers 69 21 628 41 1 37 4 10 171 19 0 7 1 2 1,011
Professionals 42 31 516 54 1 95 3 9 275 53 0 47 2 4 1,132
Technicians 38 37 79 19 0 7 0 4 65 17 0 3 1 7 277
Sales Workers 18 28 274 15 0 8 0 3 153 14 3 10 1 8 535
Administrative Support 23 22 424 17 0 11 1 0 91 22 0 4 0 5 620
Craft Workers 446 7 4,862 228 18 84 23 20 59 13 0 1 0 0 5,761
Operatives 10 1 61 74 0 2 1 0 5 62 0 0 0 2 218
Laborers & Helpers 26 5 132 57 0 3 1 6 7 31 0 0 0 1 269
Service Workers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 676 152 7,023 509 20 253 33 52 863 236 3 78 5 29 9,932
*Disclosure includes colleagues working at U.S. sites and on the December 1-15, 2021, U.S. payroll. It does not include U.S. executives on global assignments outside of the U.S.
2022 ESG REPORT 57

Appendix
GLOBAL REPORTING INITIATIVE (GRI)
DISCLOSURE NUMBER DISCLOSURE TITLE RESPONSE
GRI 102: GENERAL DISCLOSURES
ORGANIZATIONAL PROFILE
102-1 Name of the organization Otis Worldwide Corporation
102-2 Activities, brands, products, and services 2022 Form 10-K, pgs. 4-6
102-3 Location of headquarters Farmington, CT, USA
We serve customers in over 200 countries and territories. We have a direct physical presence in
102-4 Location of operations 80 countries with over 1,400 branches and offices. We also have 17 manufacturing locations.
2022 Form 10-K, pgs. 4, 25
Otis is a publicly held corporation incorporated in the state of Delaware. Our shares trade on the
102-5 Ownership and legal form
New York Stock Exchange under the symbol OTIS.
We serve customers in over 200 countries and territories.

102-6 Markets served
2022 Form 10-K pg. 4
Approximately 69,000 employees; $13.7 billion net sales; approximately 2.2 million units maintained
102-7 Scale of the organization
2022 Form 10-K pgs. 6, 10, 30
About our business

102-8 Information on employees and other workers 2022 Form 10-K, pg. 10
Appendix > EEO-1 Data Table
Suppliers are critical to our success and account for a significant percentage of total cost to our
business annually via direct materials, such as raw materials and components for New Equipment and
102-9 Supply chain Service; indirect services, such as logistics; fleet vehicles; professional services; and subcontractors
that assist with elevator installations.
2022 Form 10-K, pgs. 9, 15
Otis sold its business in Russia during 2022.

102-10 Significant changes to the organization and its supply chain
2022 Form 10-K, pg. 28
2022 ESG REPORT 58

Appendix
STRATEGY
Otis does not follow the precautionary approach but has a comprehensive risk management plan in place.
102-11 Precautionary Principle or approach
2023 Proxy Statement, pgs. 19-21
102-12 External initiatives 50/50 Women on Boards, Paradigm for Parity, U.N. Global Compact, Disability:IN
Connecticut Business Industry Association (CBIA), Construction Safety Research Alliance (CSRA), Global
102-13 Membership of associations
Elevator Safety Forum (GESF), National Elevator Industry, Inc. (NEII), National Foreign Trade Council (NFTC)
102-14 Statement from senior decision-maker A message from our CEO
102-15 Key impacts, risks and opportunities 2022 Form 10-K, pgs. 13-24
ETHICS AND INTEGRITY
The Otis Absolutes: Safety, Ethics and Quality

102-16 Values, principles, standards and norms of behavior
Alignment of Otis business strategy with ESG pillars
Multiple Reporting Channels, including for anonymous reporting, are available and described
fully on our dedicated site. These mechanisms are provided by phone (1-833-833-3001), by online
102-17 Mechanisms for advice and concerns about ethics
submittal through our anonymous webline, by email at [email protected], and/or by mail to Otis World
Headquarters, 1 Carrier Place, Farmington, CT, USA 06032 Attn: Global Ethics & Compliance Office.
GOVERNANCE
102-18 Governance structure 2023 Proxy Statement, pgs. 12-39
102-19 Delegating authority The Board and its committees engage in comprehensive review and oversight of issues related to ESG.
The ESG Council is composed of senior leaders representing multiple functions: Communications,
Executive-level responsibility for economic, environmental
102-20 Engineering, Environment, Health & Safety, Human Resources, Investor Relations, Legal, Quality &
and social topics
Continuous Improvement, and Supply Chain and Sustainability.
2023 Proxy Statement, pgs. 5, 21, 38-39

Governance & Accountability > Stakeholder engagement
Consulting stakeholders on economic, environmental
102-21 At Otis, we are committed to understanding stakeholder concerns and working for the global good
and social topics
of our colleagues, customers, passengers and society. We regularly consult with our stakeholders on
economic, environmental and social topics.
2022 ESG REPORT 59
Appendix
GOVERNANCE (CONTINUED)
102-22 Composition of the highest governance body and its committees 2023 Proxy Statement, pgs. 12-39
Chair, CEO and President, Judy Marks

102-23 Chair of the highest governance body
102-24 Nominating and selecting the highest governance body 2023 Proxy Statement, pgs. 13-16, 26-39
Related Person Transactions Policy

102-25 Conflicts of interest
Role of highest governance body in setting purpose, values,

102-26 2023 Proxy Statement, pgs. 17-21
and strategy
102-27 Collective knowledge of highest governance body 2023 Proxy Statement, pgs. 13-15, 26-36
102-28 Evaluating the highest governance body’s performance 2023 Proxy Statement, pg. 29
Identifying and managing economic, environmental, and

102-29 2023 Proxy Statement, pgs. 3-5, 19-21
social impacts
102-30 Effectiveness of risk management and processes 2023 Proxy Statement, pgs. 19-21
102-31 Review of economic, environmental, and social topics 2023 Proxy Statement, pgs. 3-5, 19-21, 38-39
102-32 Highest governance body’s role in sustainability reporting Board of Directors
102-33 Communicating critical concerns 2023 Proxy Statement, pgs. 19-21, 38-39
Governance & Accountability > Executive Compensation

102-35 Remuneration policies
2023 Proxy Statement, pgs. 12, 40-62
102-36 Process for determining remuneration 2023 Proxy Statement, pgs. 12, 40-62
102-37 Stakeholders’ involvement in remuneration 2023 Proxy Statement, pgs. 38-39, 45, 47
2022 ESG REPORT 60

Appendix
STAKEHOLDER ENGAGEMENT
Governance & Accountability > Stakeholder Engagement

102-40 List of stakeholder groups
Approximately 64% of our workforce in the U.S. is covered by collective bargaining agreements.
Outside the U.S., our colleagues are represented by workers’ councils or statutory labor unions as
102-41 Collective bargaining agreements
may be customary or required in those jurisdictions.
2022 Form 10-K, pg. 10
102-42 Identifying and selecting stakeholders Governance & Accountability > Stakeholder Engagement

102-43 Approach to stakeholder engagement
2023 Proxy Statement, pgs. 38-39, 45, 47

102-44 Key topics and concerns raised
2023 Proxy Statement, pg. 39
REPORTING PRACTICE
102-45 Entities included in the consolidated financial statements 2022 Form 10-K, pg. 60
102-46 Defining report content and topic Boundaries Contents
102-47 List of material topics Governance & Accountability > Corporate and ESG Governance
102-48 Restatements of information None
102-49 Changes in reporting None
102-50 Reporting period January 1-December 31, 2022
102-51 Date of most recent report March 31, 2022
102-52 Reporting cycle Annual
102-53 Contact point for questions regarding the report [email protected]
2022 ESG REPORT 61

Appendix
REPORTING PRACTICE (CONTINUED)
102-54 Claims of reporting in accordance with the GRI standards This report has been prepared according to the GRI Standards.
102-55 GRI context index Appendix > Global Reporting Initiative (GRI)
We engaged a third party for limited assurance covering certain health and safety, environment and
impact, and people and communities metrics. For this ESG report, the scope of work was limited
to assurance over reported Scope 1 and Scope 2 (location based) GHG emissions, percentage of
renewable electricity consumed, hazardous waste generated, industrial process waste generated,
102-56 External assurance
recycled industrial process waste, industrial waste recycling rate, water consumption for the period
December 1, 2021, to November 30, 2022, and for the TRIR, LTIR, and percent female representation
in management (global) for the period January 1, 2022, to December 31, 2022. See the Independent
Limited Assurance Statement for 2022 starting on pg. 77.
GRI 200: ECONOMIC
GRI 205: ANTI-CORRUPTION
We uphold the highest standards for strong governance, ethics and integrity, which are driven by
our Absolutes. Suppliers are a critical part of our business and, as such, are required to abide by our
103-1 Explanation of the material topic and its Boundary
Supplier Code of Conduct. The Code holds our suppliers accountable to the same standards we
establish for ourselves, starting with our Absolutes of Safety, Ethics and Quality.
Governance & Accountability > Supplier Code of Conduct

103-2 The management approach and its components
Governance & Accountability > Ethics and integrity
To maintain our culture of integrity and trust and to drive compliance with our Absolutes and company
policies, we conduct online risk-based compliance training on a quarterly basis on topics such as modern
103-3 Evaluation of the management approach slavery, anti-human trafficking, antitrust, conflicts of interest, protecting company data, cybersecurity,
data protection, anti-harassment, anti-discrimination, anti-corruption and anti-bribery. See pgs. 44-45
for references to our Supplier Code of Conduct and anti-corruption efforts.
2022 ESG REPORT 62

Appendix
GRI 200: ECONOMIC
GRI 205: ANTI-CORRUPTION (CONTINUED)
Our 2022 Ethics & Compliance training included: a 99% completion rate of annual live, supervisor-led
ethics training for all Otis colleagues and a 96% completion rate of targeted online ethics training
Communication and training about anti-corruption policies courses. More than 97% of our salaried colleagues have attested, through an annual certification in
205-2
and procedures 2022, that they have read, understand and are committed to complying with The Otis Absolutes and
Otis policies. Additionally, we celebrated Global Ethics Day, with each region leading activities focused
on the importance of speaking up and on the role that our Otis Absolutes play at Otis.
GRI 300: ENVIRONMENTAL
GRI 302: ENERGY
We are committed to managing the impact we have on our environment. We established our first
formal corporate and facility energy efficiency and GHG emission reduction targets in 1997.
A cornerstone of our factory emission reduction program is the implementation of energy best
management practices.
Otis conducts energy audits every three years at our global factories to obtain a detailed history of
energy usage and identify opportunities to work smarter by implementing new technology and improving
103-3 Evaluation of the management approach energy efficiency. By the end of 2022, we implemented over 60% of the feasible energy best practices
to our global factories. Four of our manufacturing plants now source 100% of electricity from
renewable sources.
302-1 Energy consumption within the organization In 2022, total energy consumed was reduced 8.9% to 632.2 GWh (14.1% reduction from 2019 baseline).
302-3 Energy intensity In 2022, energy intensity was reduced 4.7% to 46.2 MWh/$M net sales (19.2% reduction from 2019 baseline).
2022 ESG REPORT 63

Appendix
GRI 303: WATER AND EFFLUENTS
We use minimal water in our manufacturing processes, with primary usage attributable to sanitary
purposes within our facilities and offices.
We measure gallons of water used (inclusive of water withdrawn from well sources) and gallons of
water recycled. Our goal going forward is to maintain our existing water usage levels.
103-3 Evaluation of the management approach Since 2015, our water consumption has declined by 40%.
303-5 Water consumption In 2022, total volume of water consumed was 42.3 million gallons.
GRI 305: EMISSIONS
103-1 Explanation of the material topic and its Boundary Environment & Impact
103-2 The management approach and its components Environment & Impact > Goal: Achieve a 50% reduction of Scope 1 and Scope 2 emissions by 2030
Otis reduced Scope 1 and Scope 2 GHG emissions by 4.8% in 2022, with a cumulative reduction of
103-3 Evaluation of the management approach 11% versus our 2019 baseline. These reductions are the direct result of major initiatives implemented
over the past several years.
In 2022, direct (Scope 1) GHG emissions were reduced 2.4% to 131.7 (000’s metric tons CO2e)
305-1 Direct (Scope 1) GHG emissions
(7.7% vs 2019 baseline).
In 2022, indirect (Scope 2) GHG emissions were reduced 9.5% to 66.8 (000’s metric tons CO2e)
305-2 Energy indirect (Scope 2) GHG emissions
(16.9% vs. 2019 baseline).
305-3 Other indirect (Scope 3) GHG emissions Environment & Impact > Scope 3 emissions
In 2022, Scope 1 and Scope 2 GHG emissions intensity was reduced .7% to 14.5 (metric tons CO2e/$M net
305-4 GHG emissions intensity
sales) (16.2% vs 2019 baseline).
Reduction of Scope 1 and Scope 2 GHG emissions by 4.8% in 2022, with a cumulative reduction
305-5 Reduction of GHG emissions of 11% vs. our 2019 baseline.
Environment & Impact > Scope 3 emissions
2022 ESG REPORT 64

Appendix
GRI 306: WASTE
103-1 Explanation of the material topic and its Boundary Appendix > Hazardous waste
103-2 The management approach and its components Appendix > Hazardous waste
103-3 Evaluation of the management approach Appendix > Hazardous waste
306-1 Waste generation and significant waste-related impacts Appendix > Hazardous waste
306-2 Management of significant waste-related impacts Appendix > Hazardous waste
306-3 Waste generated Appendix > Hazardous waste > Hazardous waste generated from production facilities
GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT
103-1 Explanation of the material topic and its Boundary Governance & Accountability > Supplier Code of Conduct
103-2 The management approach and its components Governance & Accountability > Supplier Code of Conduct
103-3 Evaluation of the management approach Governance & Accountability > Supplier Code of Conduct
308-1 New suppliers that were screened using environmental criteria Governance & Accountability > Supplier Code of Conduct
2022 ESG REPORT 65

Appendix
GRI 400: SOCIAL
GRI 401: EMPLOYMENT
103-1 Explanation of the material topic and its Boundary People & Communities > employment policies, conditions & labor relations
103-2 The management approach and its components People & Communities > employment policies, conditions & labor relations
103-3 Evaluation of the management approach People & Communities > employment policies, conditions & labor relations
The global attrition rate at Otis remains in the mid-single digits, as it has been the past few years.
Although we have seen an uptick in attrition since the COVID-19 depressed rates of 2020, we believe
401-1 New employee hires and employee turnover
our current retention rate reflects overall strong Otis colleague satisfaction, positively impacted by
actions driven from our DE&I strategy.
GRI 403: OCCUPATIONAL HEALTH AND SAFETY
103-1 Explanation of the material topic and its Boundary Health & Safety > Commit to achieve a zero-harm workplace
103-2 The management approach and its components Health & Safety > Commit to achieve a zero-harm workplace
103-3 Evaluation of the management approach Health & Safety > Commit to achieve a zero-harm workplace
We utilize an EH&S Management System that blends the requirements of ISO 14001 and ISO 45001.
The system spotlights developing operation-level documentation, root cause analysis and sharing of
403-1 Occupational health and safety management system
best practices across our global facilities, with the most notable difference being a greater emphasis
on colleague participation.
We track and report incidents and conduct incident investigations and root cause analyses
403-2 Hazard identification, risk assessment, and incident investigation
as appropriate.
Our fundamental work-safety principles are the Cardinal Rules. It is imperative that these rules are
followed. We are committed to keeping our workplaces safe from hazards, ensuring that our field
403-3 Occupational health services colleagues and subcontractors are injury-free, and that our products and services remain safe for
the riding public and everyone who interacts with Otis equipment. As part of these efforts, we have
committed to specific occupational health services related goals.
2022 ESG REPORT 66

Appendix
GRI 400: SOCIAL
GRI 403: OCCUPATIONAL HEALTH AND SAFETY (CONTINUED)
Worker participation, consultation, and communication on

403-4 Health & Safety > Commit to achieve a zero-harm workplace
occupational health and safety
403-5 Worker training on occupational health and safety Health & Safety > Commit to achieve a zero-harm workplace
Otis offers mental health support to all Otis colleagues through an Employee Assistance Program
403-6 Promotion of worker health (EAP), providing a mix of work-life services, 24/7 live support, and treatment or referrals for clinical
health issues for colleagues in need. In 2022, all Otis colleagues were covered by our EAP.
Both internal and external audits and reviews are routinely performed to ensure Otis operations meet
Prevention and mitigation of occupational health and safety impacts internal and external expectations. When gaps are revealed through an audit, corrective actions are
403-7
directly linked by business relationships developed to address them and tracked to closure. Certain Otis locations in Europe are also subject
to the EU Energy Directive and file submissions to regulatory agencies.
TRIR: 2022=0.57
403-9 Work-related injuries
LTIR: 2022=0.17
2022 ESG REPORT 67

Appendix
GRI 400: SOCIAL
GRI 404: TRAINING AND EDUCATION
103-1 Explanation of the material topic and its Boundary People & Communities > Talent hiring, development and retention
103-2 The management approach and its components People & Communities > Talent hiring, development and retention
103-3 Evaluation of the management approach People & Communities
Programs for upgrading employee skills and transition

404-2 People & Communities > Talent hiring, development and retention
assistance programs
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY
103-1 Explanation of the material topic and its Boundary People & Communities > Talent hiring, development and retention
103-2 The management approach and its components People & Communities > Talent hiring, development and retention
103-3 Evaluation of the management approach People & Communities > Talent hiring, development and retention
405-1 Diversity of governance bodies and employees Appendix > EEO-1 Data Table
GRI 413: LOCAL COMMUNITIES
People & Communities > Goal: Impact 15,000 students globally through STEM-focused programming
103-1 Explanation of the material topic and its Boundary People & Communities > Goal: Direct 50% of total global giving to STEM programs by 2025
People & Communities > Goal: Dedicate 500,000 cumulative volunteer hours in support of vibrant
2022 ESG REPORT 68

Appendix
GRI 400: SOCIAL
GRI 413: LOCAL COMMUNITIES (CONTINUED)
103-2 The management approach and its components People & Communities > Goal: Direct 50% of total global giving to STEM programs by 2025
103-3 Evaluation of the management approach People & Communities > Goal: Direct 50% of total global giving to STEM programs by 2025
Operations with local community engagement, impact assessments People & Communities > Goal: Dedicate 500,000 cumulative volunteer hours in support of vibrant
413-1
and development programs communities, STEM education and social equity efforts globally by 2030
GRI 414: SUPPLIER SOCIAL ASSESSMENT
103-1 Explanation of the material topic and its Boundary Governance & Accountability > Quality
103-2 The management approach and its components Governance & Accountability > Supplier Code of Conduct
2022 ESG REPORT 69

Appendix
GRI 400: SOCIAL
GRI 414: SUPPLIER SOCIAL ASSESSMENT (CONTINUED)
103-3 Evaluation of the management approach Governance & Accountability > Supplier Code of Conduct
Otis will not do business with any entity that is unwilling to comply with the principles of the Otis
Supplier Code of Conduct, which requires suppliers to meet expectations around issues such as safety,
ethics and human rights. To advance our program on anti-human trafficking, we expanded our training
414-1 New suppliers that were screened using social criteria
from the procurement department to conducting salaried staff training. Looking forward, we will
continue to monitor the emerging regulatory landscape to ensure Otis is well positioned to detect,
mitigate and deter human trafficking.
GRI 418: CUSTOMER PRIVACY
103-1 Explanation of the material topic and its Boundary Governance & Accountability > Cybersecurity, data privacy and intellectual property
103-2 The management approach and its components Governance & Accountability > Cybersecurity, data privacy and intellectual property
103-3 Evaluation of the management approach Governance & Accountability > Cybersecurity, data privacy and intellectual property
Substantiated complaints concerning breaches of customer

418-1 2022 Form 10-K, pg. 19
privacy and losses of customer data
2022 ESG REPORT 70

Appendix
SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB)
TOPIC ACCOUNTING METRIC CATEGORY UNIT OF MEASURE CODE RESPONSE/REFERENCE
ELECTRICAL & ELECTRONIC EQUIPMENT STANDARD
(1) Total energy consumed – 632.2 GWh

(1) Total energy consumed, (2) percentage grid
Energy Management Quantitative Gigajoules (GJ), Percentage (%) RT-EE-130a.1 (2) Percentage grid electricity – 24%
electricity, (3) percentage renewable
(3) Not reported
(1) 143.2 Mt
Amount of hazardous waste generated,
Quantitative Metric tons (t), Percentage (%) RT-EE-150a.1 (2) Over 98% of factory-related industrial process waste
Hazardous Waste percentage recycled
was recycled.
Management
Number and aggregate quantity of reportable Number,

Quantitative RT-EE-150a.2 Not material to our business
spills, quantity recovered Kilograms (kg)
Not generally applicable to our business, as there are not recalls

Number of recalls issued, total units recalled Quantitative Number RT-EE-250a.1
issued in the traditional sense for our products.
There is nothing more important to Otis than the safety of

Product Safety Total amount of monetary losses as a our colleagues, customers and passengers. We move 2 billion
result of legal proceedings associated Quantitative Reporting currency RT-EE-250a.2 people every day, so infrequent accidents can happen, and
with product safety claims for compensation can be brought. Otis has not
disclosed the figure associated with these claims.
Percentage of products by revenue that

Quantitative Percentage (%) by revenue RT-EE-410a.1 Not reported
contain IEC 62474 declarable substances
Product Lifecycle Percentage of eligible products, by revenue,

Quantitative Percentage (%) by revenue RT-EE-410a.2 Not material to our business
Management that meet ENERGY STAR® criteria
Revenue from renewable energy-related and

Quantitative Reporting currency RT-EE-410a.3 Not reported
energy efficiency-related products
Description of the management of risks Discussion

Materials Sourcing n/a RT-EE-440a.1 2022 Form 10-K, pgs. 9, 15
associated with the use of critical materials and Analysis
2022 ESG REPORT 71

Appendix
SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB)
TOPIC ACCOUNTING METRIC CATEGORY UNIT OF MEASURE CODE RESPONSE/REFERENCE
ELECTRICAL & ELECTRONIC EQUIPMENT STANDARD (CONTINUED)
Description of policies and practices for Governance & Accountability > Supplier Code of Conduct
Discussion
prevention of: (1) corruption and bribery and n/a RT-EE-510a.1
and Analysis Governance & Accountability > Ethics and integrity
(2) anti-competitive behavior
Total amount of monetary losses as a result

Business Ethics of legal proceedings associated with bribery Quantitative Reporting currency RT-EE-510a.2 Not reported
or corruption
Total amount of monetary losses as a

result of legal proceedings associated with Quantitative Reporting currency RT-EE-510a.3 Not reported
anticompetitive behavior regulations
(1) 0.57 TRIR

Employee Health & (1) Total recordable incident rate (2) Fatality rate
Quantitative Rate RT-IG-320a.1 (2) 3 Fatalities
Safety* (3) Near miss frequency rate
(3) Not reported
ACTIVITY METRICS
Number of units
produced by product Quantitative Number RT-EE-000.A Not reported
category
Number of employees Quantitative Number RT-EE-000.B Approximately 69,000
*In this report, we are aligning with the Electrical & Electronic Equipment Standard but including the employee health and safety disclosures from the
2022 ESG REPORT Industrial Machinery and Goods standard because we deem this to be a material topic. 72
Appendix
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)
DISCLOSURE FOCUS AREA RECOMMENDED DISCLOSURE COMMENTS REFERENCE
GOVERNANCE
Otis’ Board and its committees engage in extensive review and oversight of ESG-related
topics, including climate-related risk and opportunities. The Nominations and Governance
a) Disclose the board’s oversight Committee has primary oversight over most ESG topics, including the Otis ESG strategy 2023 Proxy Statement, pgs. 19-21
of climate-related risks and and governance model, health and safety, sustainability, and climate-related risks and Governance & Accountability > Corporate and
opportunities. opportunities, DE&I, corporate social responsibility, and charitable giving. It also pursues ESG Governance
its ESG oversight through the integration of governance best practices into the boardroom
and with shareholder engagement.
Disclose the
organization’s governance
around climate-related
risks and opportunities.
Otis has established a dedicated ESG Council composed of senior leaders representing
multiple functions: Communications, Engineering, Environment, Health & Safety, Human
b) Describe management’s 2023 Proxy Statement, pgs. 19-21
Resources, Investor Relations, Legal, Quality & Continuous Improvement, and Supply Chain
role in assessing and managing
and Sustainability. An internal ESG Working Group, composed of subject matter experts, Governance & Accountability > Corporate and
climate-related risks and
assists the ESG Council in developing and effectuating the company’s ESG strategy. Both ESG Governance
opportunities.
the council and working group meet frequently, with the ESG Council reporting regularly
to the CEO.
STRATEGY
a) Describe the climate-related

risks and opportunities the
In 2021, Otis engaged a leading third-party to conduct a Climate Risks and Opportunities
organization has identified
scenario analysis, which identified the risks and opportunities most relevant to Otis through
over the short, medium, and
a combination of data analysis, stakeholder interviews and third-party expertise.
long term.
Disclose the actual and Risks and opportunities were evaluated over the short-term (five years), mid-term (2030)
b) Describe the impact of
potential impacts of and long-term (2050+) time horizons. The impact and likelihood of each risk or opportunity
climate-related risks and was considered under two scenarios: a 2˚C or lower scenario and a ˮbusiness-as-usualˮ
opportunities on the
opportunities on the scenario. The scenarios followed well-defined international models based on the Environment & Impact
organization’s businesses,
organization’s businesses, Intergovernmental Panel on Climate Change’s Representative Concentration Pathways
strategy, and financial planning.
strategy and financial (RCP), the Shared Socioeconomic Pathways (SSP) and the International Energy Agency
planning. c) Describe the resilience of (IEA). The RCP focuses on climate data; the SSP integrates social and economic outputs;
the organization’s strategy, and the IEA estimates energy and fuel supply transitions.
taking into consideration
Through this exercise, four risks and two opportunities were prioritized for further
different climate-related
discussion regarding both disclosure and business strategy.
scenarios, including a 2°C
or lower scenario.
2022 ESG REPORT 73
Appendix
STRATEGY (CONTINUED)
Risks:
Risk 1: Disruptions to critical suppliers/supply infrastructure due to climate-related changes
(e.g., sea level rise)
Impact: Chronic changes, such as sea level rise, impact suppliers and shipping due to
flooding in critical regions where Otis operates.
Resilience: Otis is looking to expand its sourcing beyond current suppliers to boost
resilience and reduce exposure.
a) Describe the climate-related
risks and opportunities the Risk 2: Increased costs due to changing input prices (e.g., energy, water) and output
organization has identified requirements (e.g., carbon pricing and waste treatment)
Impact: Changing energy markets increase input costs; waste disposal requirements
long term.
increase costs of product end-of-life management; and carbon pricing will require
Disclose the actual and
b) Describe the impact of payment for emissions.
potential impacts of
climate-related risks and Resilience: Otis has set a 2030 emission reduction goal, which could lead to cost
opportunities on the
opportunities on the savings associated with carbon pricing, and there are processes in place to monitor Environment & Impact
organization’s businesses, regulatory trends.
strategy and financial planning.
strategy and financial
Risk 3: Extreme heat impacting productivity and availability of employees and production
planning. c) Describe the resilience of
portfolio (shutdowns, increased cooling costs)
the organization’s strategy,
taking into consideration Impact: Extreme heat lowers employee productivity in the field, damages machinery,
different climate-related increases costs to cool machines and shortens part lifetimes.
scenarios, including a 2°C
Resilience: Otis has deployed IoT connectivity and remote servicing, along with existing
or lower scenario.
safety procedures, and has put in place business continuity practices.
Risk 4: Increased frequency and severity of coastal flooding and extreme weather events
causing business disruptions
Impact: Supply chain and operations disruptions from more frequent and severe
extreme weather could cause damage to Otis’ facilities.
Resilience: Otis has begun to invest in climate-impact data to support decisions on
long-term locations and real estate strategy.
2022 ESG REPORT 74

Appendix
STRATEGY (CONTINUED)
a) Describe the climate-related Opportunities:

risks and opportunities the
Opportunity 1: Increased demand for Otis products and services due to growing
organization has identified
populations in urban areas and extreme weather events
long term. Impact: Increased revenue through demand for Otis products to accommodate
Disclose the actual and growth in urban populations and land constraints
b) Describe the impact of
potential impacts of
climate-related risks and Resilience: Planning for long-term investment to scale services and new products
opportunities on the most appropriate for the type of new building demand
opportunities on the Environment & Impact
organization’s businesses, Opportunity 2: Increased market demand for revitalization and Otis energy efficient
strategy, and financial planning.
strategy and financial equipment, due to increases in climate pressures, consumer demand, and in response
planning. c) Describe the resilience of to current and emerging mandates and regulations
the organization’s strategy,
Impact: Increased revenue through demand for energy efficient products and
taking into consideration
modernization of existing products
different climate-related
scenarios, including a 2°C Resilience: Striving for 60% of our portfolio units to be connected over
or lower scenario. the medium-term
RISK MANAGEMENT
a) Describe the organization’s

processes for identifying and
assessing climate-related risks. A number of ESG risks are expressly considered in the ERM risk identification and
assessment process, including climate-related risks; meeting stakeholder ESG
b) Describe the organization’s
expectations; ESG reporting in accordance with the Global Reporting Initiative (GRI)
Disclose how the processes for managing 2023 Proxy Statement, pgs. 19-21
Standards, as well as in alignment with the Sustainability Accounting Standards Board
organization identifies, climate-related risks.
(SASB) guidelines for the Resource Transformation sector and the Task Force on Governance & Accountability > Corporate and
assesses and manages
c) Describe how processes Climate-related Financial Disclosures (TCFD); DE&I; ethical culture; and colleague and ESG Governance
climate-related risks.
for identifying, assessing, and public safety. ESG risks and corresponding mitigation actions that do not make the
managing climate-related list of Top ERM Risks are managed by the ESG Council and ESG Working Group,
risks are integrated into the using a modified version of the ERM process.
organization’s overall risk
management.
2022 ESG REPORT 75

Appendix
METRICS AND TARGETS
a) Disclose the metrics used

by the organization to assess
climate-related risks and Otis monitors several metrics to measure progress toward achieving our 2030 targets,
opportunities in line with including emissions generated, energy consumption and management, and waste disposal.
its strategy and risk
management process.
Refer to the Global GHG metrics section of Environment & Impact for Scope 1 and Scope
Disclose how the b) Disclose Scope 1, Scope
2 GHG emission reporting. With respect to Scope 3 emissions, the end use of our products
organization identifies, 2 and, if appropriate, Scope
by our customers and our purchased goods and services account for the majority of our Environment & Impact > Global GHG Metrics
assesses, and manages 3 greenhouse gas (GHG)
Scope 3 emissions. We are working through the quantification of Scope 3 emissions and
climate-related risks. emissions, and the related risks.
we intend to submit to SBTi in 2023.
c) Describe the targets used Achieve a 50% reduction of Scope 1 and Scope 2 emissions by 2030
by the organization to manage Reach carbon neutrality for factory electricity by 2030
opportunities and performance Achieve 100% factory eligibility for zero-waste-to-landfill certification by 2025
against targets. Complete ISO 14001 certification for all factories by 2025 (goal achieved)
2022 ESG REPORT 76

Appendix
THIRD-PARTY ASSURANCE
2022 ESG REPORT 77

Appendix
2022 ESG REPORT 78

Appendix
2022 ESG REPORT 79

Appendix
2022 ESG REPORT 80

Appendix
NON-GAAP RECONCILIATIONS
($ millions) FY 2022 FY 2022 organic sales change FY 2022
Sales, Net Income and Operating profit Otis New Service Corporate/ Organic 2.5%
Equipment other FX (5.9%)
GAAP Net sales 13,685 5,864 7,821 Net acquisitions/divestitures (0.9%)
Russia (106) (86) (20) Total net sales change (4.3%)
Adjusted net sales 13,579 5,788 7,801
Adjusted diluted earnings per share FY 2022

GAAP Net income attributable to Otis 1,253
Noncontrolling interest in subsidiaries 116 GAAP diluted earnings per share $2.96
Income tax expense 519 Impact of non-recurring items on diluted

$0.21
earnings per share
Net interest expense 143
Adjusted diluted earnings per share $3.17
Non-service pension cost (benefit) 2
GAAP operating profit 2,033 358 1,789 (114)
Restructuring 60 23 37 0 ($ millions)
Russia operations 5 (3) 4 4 Free cash flow FY 2022
Russia sale and conflict-related charges 28 3 2 23 Operating cash flow 1,560

Adjusted operating profit 2,126 381 1,832 (87) Capital expenditures (115)
GAAP operating profit margin 14.9% 6.1% 22.9% n/a Free cash flow 1,445
Adjusted operating profit margin 15.7% 6.6% 23.5% n/a
2022 ESG REPORT 81

Appendix
USE AND DEFINITIONS OF NON-GAAP FINANCIAL MEASURES
The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). We supplement the
reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides
investors with additional useful information but should not be considered in isolation or as substitutes for the related GAAP measures. Moreover, other companies
may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors
to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Adjusted net sales, organic sales, adjusted operating profit, adjusted diluted earnings per share (“EPS”) and free cash flow are non-GAAP financial measures.
Adjusted net sales represents net sales (a GAAP measure), excluding significant items of a non-recurring and/or nonoperational nature (“other significant items”).
Organic sales represents consolidated net sales (a GAAP measure), excluding the impact of foreign currency translation, acquisitions and divestitures completed
in the preceding 12 months and other significant items. The company’s management believes organic sales is a useful measure in providing period-to-period
comparisons of the results of the company’s ongoing operational performance.
Adjusted operating profit represents income from continuing operations (a GAAP measure), excluding restructuring costs and other significant items.
Adjusted diluted EPS represents diluted earnings per share attributable to common shareholders (a GAAP measure), adjusted for the per share impact of
restructuring and other significant items, including related tax effects.
The company’s management believes that adjusted net sales, organic sales, adjusted operating profit and adjusted diluted EPS are useful measures in
providing period-to-period comparisons of the results of the company’s ongoing operational performance.
Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. The company’s
management believes free cash flow is a useful measure of liquidity and an additional basis for assessing Otis’ ability to fund its activities, including the
financing of acquisitions, debt service, repurchases of common stock and distribution of earnings to shareholders.
A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables on the previous pages.
These tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.
2022 ESG REPORT 82

Cautionary statement
This report contains forward-looking statements (including statements that constitute forward-looking statements under the securities laws), including, but not
limited to, statements that relate to our intent to achieve certain environmental, social and governance plans, targets, goals and future risks associated with
climate change. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating performance,
based on assumptions currently believed to be valid. All such forward-looking statements are subject to risks and uncertainties, and our future results of operations
could differ materially from our historical results or current expectations reflected by such forward-looking statements. The forward-looking statements are
subject to future events, risks, uncertainties and other factors, many of which are beyond the control of the company, that could cause actual results to differ
materially from our historical results or current expectations, including, but not limited to, changes in regulations and law; severe weather events, including from
the effects of climate change; challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced
technologies and new products and services; changes in the economic and political conditions in the industry and markets in which we operate; and other risks
and uncertainties described in detail in the company’s most recent Form 10-K, Form 10-Q and in similar sections of other filings made by the company with
the Securities and Exchange Commission from time to time. The forward-looking statements speak only as of this date. We undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Company names, trademarks and trade names

Otis and its subsidiaries’ names, abbreviations thereof, logos, and product and service designators are either the registered or unregistered trademarks or
trade names of Otis and its subsidiaries. Names of other companies and organizations, abbreviations thereof, logos of other companies and organizations,
and product and service designators of other companies are either the registered or unregistered trademarks or trade names of their respective owners.
2022 ESG REPORT 83

Otis Worldwide Corporation
1 Carrier Place, Farmington, CT 06032 USA
otis.com
2022 ESG REPORT 84

Otis ESG Report 2022

Uploaded by

Copyright:

Available Formats

Otis ESG Report 2022

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Otis ESG Report 2022

Uploaded by

Copyright:

Available Formats

2022 ESG Report

Every move we make is focused

13 HEALTH & SAFETY

19 ENVIRONMENT & IMPACT

28 PEOPLE & COMMUNITIES

37 GOVERNANCE & ACCOUNTABILITY

2022 ESG REPORT 2

2.2 million customer units globally – the world’s largest portfolio.

2022 ESG REPORT 3

A message from our CEO

2022 BY THE NUMBERS*

adjusted net sales adjusted operating profit

57% 83% 23.5%

About our business (continued)

Gen2 Gen3 Gen360 SkyRise

2022 ESG REPORT 6

About our business (continued) ~34,000 >1,400

2022 ESG REPORT 7

Alignment of Otis business strategy with ESG pillars

2022 ESG REPORT 8

HEALTH & ENVIRONMENT &

PEOPLE & GOVERNANCE &

2022 ESG at a glance

HEALTH & SAFETY ENVIRONMENT & IMPACT**

Complete ISO 14001 Goal achieved in 2021:

2022 ESG at a glance (continued)

PEOPLE & COMMUNITIES GOVERNANCE & ACCOUNTABILITY

Increase colleague favorability for

Direct 50% of total global giving to

Impact 15,000 students globally

Dedicate 500,000 cumulative colleague

2022 and 2023 Otis awards and accolades

81 Newgate Street, London, United Kingdom Chahuadi neighborhood, Shenzhen, China

2022 ESG REPORT 12

Health & Safety

Our fundamental work-safety principles are the Cardinal Rules.

2022 ESG REPORT 13

Goal: Commit to achieve a zero-harm workplace

Otis aims to achieve zero fatalities and serious injuries across

2022 ESG REPORT 14

Goal: Commit to achieve a zero-harm workplace (continued)

2015 2022 2015 2022

2022 ESG REPORT 15

Goal: Educate all field professionals and field subcontractors*

Goal: Educate all field professionals and field subcontractors

In the event of non-compliance with the Cardinal Rules, we take appropriate

2022 ESG REPORT 17

Goal: Expand availability of well-being and resilience services to all colleagues

2022 ESG REPORT 18

Environment & Impact

GLOBAL GHG METRICS* ENERGY CONSUMPTION*

Scope 1 and Scope 2 GHG emissions intensity

Energy intensity (MWh/$M net sales) 57.2 54.0 48.5 46.2

Goal: Achieve a 50% reduction of Scope 1 and Scope 2 emissions by 2030

FACTORY ENERGY MANAGEMENT

2022 ESG REPORT 20

Our factory in Bengaluru,

2022 ESG REPORT 21

World North Europe, Asia

2022 ESG REPORT 22

FACTORY ENERGY MANAGEMENT

• atality Prevention Audits are conducted twice annually with each