Man on a Mission
Honeywell’s pursuit of solutions to some of the world’s biggest challenges has CEO David Cote energized.
Evan Kafka
By immediately and comprehensively using existing Honeywell International Inc. (HON) technologies, “the U.S. and Europe could each reduce energy consumption by 15 to 20 percent. Fifteen to 20 percent!” This favorite mantra of Honeywell Chairman and CEO David M. Cote is one he’s articulated on television talk shows, with business leaders worldwide and with politicians as highly placed as President Obama, former President George W. Bush and Indian Prime Minister Manmohan Singh. “We’ve had these claims bulletproofed,” he elaborates. “We’ve had engineers and consultants and lawyers pore over the data. This is real.”
Cote’s crusade to avert crippling global energy shortages, escalating oil prices and the economic meltdown that could result from a global energy crisis began eight years ago when he joined Morristown, N.J.-based Honeywell as CEO. Looking for a growth strategy, he determined that the then-struggling technology and manufacturing company would strengthen its portfolio around broad megatrends, many of which it was already pursuing: In addition to energy efficiency for factories, homes, buildings and transport, he targeted personal, commercial and homeland security; safety in the air and on the ground; and wireless technologies.
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Yet Cote, 57, clearly is most passionate about energy-saving practices, products and services, emphasizing that the first solutions to the energy crisis are readily available. “We need to act now,” he insists. To do its part, Honeywell asserts, fully half of its portfolio — from programmable thermostats to high-tech air-traffic management systems — involves conserving or generating energy. Cote has no doubt that the world can ensure ample, even inexpensive fuel sources. But first, he says, we need to change the argument from global warming to something a little less sexy — and less politically charged: economic security, which is a far more immediate concern for most people. “Oil doesn’t always come from the most stable parts of the globe,” says Cote. “Low-cost energy self-sufficiency stimulates industry growth and job creation.”
What’s more, he says, much of the rest of the world already encourages efficient practices and generation of new fuel sources. “China is being measured harshly against Copenhagen standards,” says Cote. “But while we are still arguing about energy solutions, China is walking the talk with solar, carbon sequestration, wind and efficiency products such as building controls. The U.S. could put itself at a real economic disadvantage in a competitive race with China,” he warns.
