Trane: How AI Can Improve the Energy Efficiency of Buildings

The traditional model of industrial manufacturing is undergoing a significant shift.

For decades, energy use in the built environment has been dominated by large-scale equipment such as chillers, boilers and compressors that regulate indoor conditions.

Now, as organisations face rising energy costs alongside stricter emissions targets, digital capabilities are becoming central to how energy is managed and optimised.

In this context, heating and ventilation specialist Trane Technologies is transitioning from a hardware-led business towards AI-enabled, autonomous energy systems.

Energy consumption and data intelligence are increasingly intertwined across the global economy.

For many large organisations, building operations represent a significant and often inefficient energy burden. Traditional HVAC systems typically run on fixed schedules, failing to respond to real-time changes in occupancy, weather or demand, resulting in avoidable energy waste.

Using AI to optimise energy systems

To address this inefficiency, companies are shifting towards predictive, data-led control systems.

Integrating AI into climate and energy management platforms allows systems to continuously adjust performance rather than relying on static cycles.

Advanced algorithms anticipate shifts in building conditions and fine-tune thermodynamic processes in real time, delivering improved energy efficiency with lower computational demand.

When paired with conventional automation technologies, these autonomous systems can reduce commercial energy consumption by up to 25% and lower carbon emissions by as much as 40%.

This shift is also influencing corporate strategy, with industrial firms increasingly investing in digital capabilities through mergers, acquisitions and partnerships.

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

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

Progress towards low-carbon energy targets

In its latest sustainability report, Trane Technologies confirmed it has reached the midpoint of its 2030 climate roadmap.

A central pillar of this strategy is energy and emissions reduction. The company has achieved a 59% absolute cut in Scope 1 and Scope 2 greenhouse gas emissions compared with its 2019 baseline, surpassing its interim 2030 target of 50%.

This progress was supported by a large-scale refrigerant transition across five North American sites, delivering a 26% reduction in Scope 1 emissions between 2024 and 2025 alone.

At the same time, the company is reshaping how it sources energy. By expanding to 15 on-site solar installations and securing virtual power purchase agreements, Trane covered 84% of its electricity consumption with renewable energy in 2025.

Balancing growth with energy demand

Business expansion has increased overall energy demand. Revenue rose from US$13.1bn in 2019 to US$21.3bn in 2025, contributing to a 1.7% increase in absolute energy use over the same period.

However, efficiency gains have offset this growth. The company reports a 38% improvement in energy intensity since 2019 and has established a dedicated Energy Efficiency Improvement and Electrification team to accelerate further reductions.

Beyond operational energy use, Trane is addressing upstream energy and carbon impacts within its supply chain.

In 2025, materials used in its products contained an average of 44% recycled content. The company has also introduced stricter sourcing criteria, with around 28% of steel procurement meeting lower-emissions standards. Supplier partnerships have enabled the development of aluminium alloys with more than 80% recycled content.

Circularity efforts are also expanding, with remanufacturing revenue increasing by 31% to US$282m, while 80% of operational sites have now achieved zero waste-to-landfill.