Johnson Controls Hitachi Air Conditioning
Air conditioning
This 60:40 joint venture between Johnson Controls and Hitachi Global Life Solutions was established in 2015. Distributed in Australia by Temperzone.

Overall

Owned IRL
Rating C
About the Ratings

Company Ownership

Johnson Controls Hitachi AC Ltd
JPN
Johnson Controls International plc
owns 60% of Johnson Controls Hitachi AC Ltd
IRL
Diversified technology
Merged with Ireland-based Tyco in 2016, allowing Johnson Controls to relocate its headquarters to Ireland and save about US$150 million a year by avoiding American taxes.
Hitachi Global Life Solutions Inc
owns 40% of Johnson Controls Hitachi AC Ltd
JPN
Home appliances
Formed a joint venture with Arcelik in 2021 in the global home appliance business (excluding Japan).

Company Assessment

(Last updated Mar 2024)
Johnson Controls Hitachi AC Ltd
Criticism
Part owned by Hitachi, which has criticisms
This company is 40% owned by Hitachi, which has numerous criticisms and an overall Shop Ethical rating of 'D'.
Information
Sustainability claims
This company has sustainability claims on its website in the areas of environment and contributions to society.
Johnson Controls International plc
Praise
CDP Climate Change score of A
In 2023, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change score of A.
Source: CDP (2023)
CDP Water Security score of B
In 2023, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security score of B.
Source: CDP (2023)
JUST Capital ranking
JUST Capital polls Americans every year to identify the issues that matter most in defining just business behaviour. For their 2024 rankings the public identified 20 issues, which are organised under the headings Workers, Communities, Customers, Shareholders and Environment. JUST Capital then define metrics that map to those issues and track and analyse the largest, publicly traded U.S. companies. This analysis powers their rankings, in which this company ranked 108th of 937 companies, and 3rd of 51 Industrial Goods companies.
75/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 75/100 in the Building Products category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 16 Dec 2022). The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Criticism
$17.5m PFAS settlement
in 2021 Johnson Controls subsidiary Tyco Fire Products agreed to a US$17.5 million settlement to resolve multi-district litigation concerning the contamination of water supplies by firefighting foam containing hazardous chemicals known as PFAS.
47.6% in conflict minerals rankings
As You Sow's 2019 report, Mining the Disclosures, is a deep analysis of 215 companies' human rights performance in relation to sourcing conflict minerals from the Democratic Republic of the Congo (DRC). This company's score was 47.6% (Minimal).
CEO Pay Ratio of 314:1
In 2022 the median pay for a worker at this company was US$47,588. The CEO was paid 314 times this amount. Exorbitant CEO pay is a major contributor to rising inequality. CEOs are getting more because of their power to set pay, not because they are increasing productivity or possess specific, high-demand skills. The economy would suffer no harm if CEOs were paid less (or taxed more). In contrast, the CEO-to-typical-worker compensation ratio was 20-to-1 in 1965 and 58-to-1 in 1989.
Information
12.0% in Newsweek Green Ranking 2017
This company received a score of 12/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor.
Excessive CEO pay
As You Sow's 2021 report, 'The 100 Most Overpaid CEOs', reveals the 100 most overpaid CEOs from USA's 500 largest public companies (as determined by the S&P 500 list). This company's CEO, George Oliver came in at number 85 on the list, having been paid US$15,476,637 in 2020. According to the report, "Most CEOs have come to be grossly overpaid, and that overpayment is harmful to the companies, the shareholders, the customers, the other employees, the economy, and society as a whole."
$14.4m bribery settlement
In 2016 this company agreed to pay US$14.4 million to settle US regulatory charges that its workers bribed Chinese shipbuilders and shipyards, including some owned by the Chinese government, to win business and enrich themselves. [Listed under Information due to age of settlement]
Climate action commitments
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target; commit to smart energy use; responsible corporate engagement in climate policy.
Sustainability Consortium member
This company is a member of The Sustainability Consortium, an organization of diverse global participants that work collaboratively to build a scientific foundation that drives innovation to improve consumer product sustainability. They develop transparent methodologies, tools, and strategies to drive a new generation of products and supply networks that address environmental, social, and economic imperatives.
Sustainability claims
This company has sustainability claims on its website.
> About the Icons

Company Details

Type:
Joint venture
Founded:
2015
Employees:
15,000 (2018)

Contact Details

Address:
Tokyo, Japan
Website:
www.jci-hitachi.com

Products / Brands

Johnson Controls Hitachi Air Conditioning
Hitachi Air Conditioners