AI will enable in transforming ecosystems
– Arun Awasthy, President & Managing Director, Johnson Controls India.
Industrial Economist (IE): The HVAC sector is projected to reach USD 29,282.7 million by 2030. Cooling systems as such contribute to global warming. In such a cyclic scenario, how can India manage the growing demand?
Arun Awasthy (AA): Being prominent providers of HVAC solutions in India, we are cognizant of the pivotal role of cooling in our country, its potential for causing environmental harm, along with the burgeoning demand. This undoubtedly poses a significant conundrum. While India has already demonstrated proactiveness through its policies and framework, it is imperative to consider a multifaceted approach that includes:
• Leveraging smart technologies
• Promoting sustainable refrigerants
• Enhancing public awareness
• Facilitating industry collaboration
By embracing this comprehensive approach, India can effectively manage the rising demand for cooling in the HVAC sector.

AA: Sustainability is at the heart of our operations, both externally and internally. Within our operations, we actively embed sustainable practices into various aspects of our business, reflecting our commitment to responsible and eco-conscious operations.
• Environmental stewardship: Our operations prioritise reducing environmental impact and carbon footprint. In that endeavour, we have achieved a 5.5 per cent cut in energy intensity and an impressive 26.1 per cent decrease in greenhouse gas emissions intensity from 2017 to 2020.
• Comprehensive sustainability strategy: Johnson Controls put together a ‘2025 Sustainability Strategy in 2017.’ This strategy has guided us across five key areas: solutions, people, partnerships, performance and governance. Our ambitious 2025 goals related to greenhouse gas emissions, energy, water, waste, safety and diversity, drive our efforts toward a sustainable future.
• Cultural integration: We foster a sustainability culture that engages employees and attracts individuals passionate about making a positive impact.
• Stakeholder engagement: Actively engaging stakeholders on environmental issues and participating in global partnerships have been a key factor in amplifying our sustainability impact. Our collaboration contributes to a broader movement for positive change.
• Leadership commitment: George Oliver, Johnson Controls Chairman and CEO, chairs the Business Roundtable Energy & Environment Committee, emphasising our global commitment to address climate change. Katie McGinty’s appointment as Chief Sustainability Officer brings the might of her experience in the field and underscores our innovative leadership in clean energy and environmental stewardship.
• Transparency and accountability: Our commitment to transparency and integrity is evident through early signatory status and ongoing membership in the United Nations Global Compact. We disclose sustainability data to keep stakeholders fully informed and our sustainable supply chain activities reduce the environmental footprint of our suppliers too.
IE: Can you brief on your OpenBlue software.
AA: OpenBlue is designed to transform the way we manage and experience physical spaces. At its core, OpenBlue brings together advanced technology and our extensive expertise in building solutions. It serves as an overarching technology layer that unifies disparate operational units of a building, to function as one cohesive unit, exchange intelligence and further enhance its efficiency across the board.
This software focuses on three key areas: sustainability, enhanced experiences and safety/security. In terms of sustainability, artificial intelligence is used to make buildings more energy-efficient, providing solutions to improve overall performance. Simultaneously, the software prioritises the creation of enhanced experiences within spaces. It fosters personalised interactions and empowers users with mobile applications for day-to-day building-related needs. Ensuring safety and security is a top priority for us. OpenBlue features advanced solutions with compliance monitoring, addressing contemporary challenges like social distancing monitoring and contact tracing. Its versatility makes it applicable across various industries, from healthcare to education and stadiums.
A notable feature of OpenBlue is the digital twin service, allowing for the creation of a digital replica. This enables smart building capabilities, providing a virtual representation of assets, processes and systems within a physical space.
IE: How has AI played a role in your business?
AA: AI has been a game-changer, propelling us into the forefront of smart building technology. Across various domains, AI is a linchpin, contributing uniquely to our overarching business goals.
• Building performance optimisation: By harnessing the power of data from diverse building systems, AI identifies patterns and predicts maintenance needs. This data-driven approach not only enhances operational efficiency but also champions reduced energy consumption and supports sustainable building practices.
• Autonomous smart buildings within OpenBlue ecosystem: At the heart of our OpenBlue ecosystem lies the core of AI-driven autonomous smart buildings. This application not only streamlines operational efficiencies, but also enriches user experiences. Thanks to AI at the edge, we seamlessly address concerns related to privacy, compliance and cybersecurity, ensuring a secure and seamless integration with building operations.
• Digital twins for continuous improvement: Leveraging the capabilities of AI, our digital twins create a continuous feedback loop between physical and virtual spaces. This integration, encompassing AI, IoT, and cloud technologies, generates strategic recommendations for improving building performance and user experience. Over time, it allows us to refine and optimise our solutions for greater efficiency.
• Data-driven insights for informed decision-making: The real-time data collected across building systems are pivotal in making informed decisions, implementing continuous improvement strategies and providing our customers with actionable intelligence to achieve their sustainability and efficiency goals.
In essence, AI at Johnson Controls isn’t just about automation; it’s a cornerstone, enabling smart, adaptive and sustainable building solutions.
IE: What are the challenges faced by the HVAC industry in India in transitioning to lower-emission technologies?
AA: The HVAC industry in India encounters several challenges in transitioning to lower-emission technologies. One significant challenge is the need for widespread adoption of energy-efficient and environmentally friendly systems. While there is growing awareness, the upfront costs of advanced technologies can be a hindering swift adoption.
Infrastructure limitations and varying regional requirements pose another challenge. India’s diverse climate zones and infrastructure disparities require HVAC solutions that are adaptable to different contexts, adding complexity to the transition. Additionally, there is a need for comprehensive regulations and standards to incentivise the adoption of lower-emission technologies.
Educating stakeholders, including consumers and technicians, is essential. Awareness about the benefits and long-term cost savings associated with lower-emission technologies is crucial for fostering acceptance and driving the industry toward sustainable practices.
Collaboration among industry players is very essential to overcome these challenges. Creating a supportive ecosystem that addresses financial barriers, adapts to diverse requirements and promotes awareness will be key to successfully transitioning the HVAC industry in India to lower-emission technologies.
IE: Are there any government policies or incentives to promote low-emission technologies?
AA: Yes, the government is actively promoting low-emission technologies in the green building industry through various policies and incentives. One key initiative is the Energy Conservation Building Code (ECBC), which sets standards for energy use in buildings, covering aspects like building envelopes, comfort systems, lighting and renewable energy systems. The ECBC aims to improve energy efficiency in buildings and reduce their environmental impact. By complying with the ECBC standards, buildings can achieve energy savings and those exceeding the requirements may receive special labels like “ECBC Plus” or “Super ECBC Buildings.”
Additionally, the government encourages the use of voluntary green building rating programmes, which assess and certify buildings based on their environmental performance. While these programmes currently cover approximately 5 per cent of the Indian building market, they play a crucial role in promoting sustainable construction practices and encouraging the adoption of low-emission technologies. The government supports such initiatives as part of its broader strategy to address climate change and enhance sustainability in the construction sector.
Furthermore, as part of urban planning, the government emphasises climate-sensitive approaches, urging cities to increase green spaces, conserve natural resources and adopt flexible, adaptive and climate-responsive regulations. These measures contribute to the overall goal of making urban areas more environmentally friendly and resilient. In summary, the government’s policies and incentives framework for the promotion of green buildings, low-emission technologies and sustainable practices are robust, and if we continue to build on them and widen its impact, it can be game changing for India’s net-zero target realisation.
