Modine has accelerated its sustainability and clean technology strategy, cutting absolute Scope 1 and Scope 2 greenhouse gas emissions by 25 percent from its fiscal 2018 baseline while surpassing its 2030 energy intensity and water intensity goals four years ahead of schedule.
The company’s 2026 Sustainability Report, Purpose-Driven Engineering, highlights progress across carbon reduction, renewable energy, energy efficiency, water conservation, sustainable manufacturing and low-carbon technology. The gains came as Modine expanded rapidly in data center cooling, with annual sales reaching a record $3.18 billion.
The Modine Sustainability Report shows the company is now preparing new environmental goals covering emissions reductions, resource efficiency and its longer-term climate transition.
“Our progress this year, particularly in surpassing our 2030 energy and water intensity goals years ahead of schedule, is a testament to the dedication of our global workforce. Sustainability is embedded in how we operate and innovate, and we are proud of our collaborative efforts to engineer a cleaner, healthier world,” Erin J. Roth, who leads Modine’s sustainability program, said.
Modine Cuts Scope 1 and Scope 2 Carbon Emissions 25 Percent
Modine has set a 2030 target to reduce its direct Scope 1 and Scope 2 carbon footprint by 30 percent from the FY2018 baseline.
Scope 1 and Scope 2 emissions totaled approximately 156,417 tons of CO₂e in FY2026, representing a 25 percent absolute reduction from the FY2018 baseline of 208,095 tons.
The FY2018 baseline comprised 39,193 tons of Scope 1 emissions and 168,901 tons of Scope 2 emissions. By FY2026, Scope 1 emissions stood at 42,091 tons, while Scope 2 emissions fell to 114,398 tons.
Modine also achieved independent limited assurance of its greenhouse gas emissions information for the first time, strengthening the transparency of its climate reporting.
Energy Intensity Falls 43 Percent
Modine reduced energy intensity by 43 percent from its FY2018 baseline, exceeding its 2030 target of a 40 percent reduction four years ahead of schedule.
Energy intensity declined from 250,349 kWh per $1 million of sales in FY2018 to 190,038 kWh in FY2024, 170,658 kWh in FY2025 and 142,624 kWh in FY2026.
The company also achieved its U.S. Department of Energy Better Plants Energy Challenge commitment to reduce energy intensity by 25 percent from FY2022 ahead of schedule. During FY2026, 18 U.S. Modine plants joined the DOE Better Plants program.
Since 2018, 93 percent of facilities have participated in energy training or awareness initiatives, while 76 percent have implemented air-compressor leak remediation or upgrades. LED lighting efficiency projects have been deployed at 78 percent of facilities and motion sensors and/or thermostat controls at 83 percent.
During FY2026, 35 sites implemented ultrasonic compressed-air leak detection programs. Nine sites identified dozens of leaks and reported more than $75,000 in cost savings along with energy savings.
Renewable Energy Generation Expands
Total electricity purchased from the grid reached 239,617,142 kWh in FY2026, compared with 236,519,780 kWh in FY2025 and 254,089,081 kWh in FY2024.
Renewable electricity supplied through local grids totaled 54,834,366 kWh in FY2026, compared with 53,241,657 kWh in FY2025 and 72,923,566 kWh in FY2024.
Renewable Energy Certificates increased sharply to 31,002,082 kWh in FY2026 from 27,680,614 kWh in FY2025 and 9,565,142 kWh in FY2024.
On-site renewable energy generation rose to 5,240,522 kWh in FY2026 from 3,517,087 kWh in FY2025 and 913,609 kWh in FY2024.
Modine has on-site renewable installations at six facilities and uses Renewable Energy Certificates at eight facilities. The company is also evaluating power purchase agreements.
India Solar Plant to Avoid 1,328 Tons of CO₂ Annually
Modine’s Sriperumbudur facility in India installed a 1,300-kW rooftop solar plant across approximately 10,000 square meters of roof space.
Operational since August 2025, the system generates around 135,000 kWh of renewable electricity each month and supplies roughly 30 percent of the facility’s total energy demand.
The solar project is expected to avoid approximately 1,328 tons of CO₂ emissions annually while delivering around $38,000 in annual cost savings.
Modine Beats 2030 Water Intensity Target
Modine also surpassed its target to reduce water intensity by 40 percent from the FY2018 baseline during FY2026.
The company continues to pursue water savings through leak detection, cooling tower optimization, closed-loop systems, water recycling and reuse, real-time monitoring and targeted initiatives in water-stressed locations.
Logistics Initiative Cuts CO₂ Emissions
Modine is also targeting emissions across its value chain. A logistics initiative at its Lawrenceburg operation reduced inbound trailers on a single lane by 30 percent and avoided 2.4 metric tons of CO₂ emissions every week from one supplier.
The company has identified four major Scope 3 emissions categories: Category 1 Purchased Goods and Services, Category 4 Upstream Transportation and Distribution, Category 9 Downstream Transportation and Distribution, and Category 11 Use of Sold Products.
During FY2026, Modine added Category 6 Business Travel to its Scope 3 inventory and plans to add Category 5 Waste.
Modine Targets 85 Percent Waste Recycling or Reduction
Modine aims to recycle or reduce 85 percent of waste from an FY2024 baseline.
Its initiatives include facility-specific waste reduction, cardboard and plastic recycling, lower packaging weights, scrap-metal reduction and increased reuse of pallets, packaging materials and transport containers.
Modine Products Target Lower Energy Use and Emissions
Modine is extending its sustainability strategy to products designed to reduce customer energy consumption and emissions.
The redesigned L.B. White by Modine Mini-T 13 heater reduces fuel consumption by 24 percent after lowering output requirements from 17,000 BTU/h to 13,000 BTU/h. The redesign cuts use-phase carbon emissions by approximately 0.556 lbs of CO₂ annually per unit.
In data centers, Modine’s direct-to-chip water and glycol liquid cooling systems can provide 25 to 30 times greater cooling effectiveness than conventional air cooling.
The company’s Airedale SmartCool One technology has delivered energy savings of up to 37 percent at customer colocation facilities, generating approximately $400,000 in operating cost savings. Other Modine cooling technologies using AI-optimized controls can reduce data center cooling energy requirements by up to 40 percent.
Data Center Cooling Sales Surge 73 Percent
Growing demand for energy-efficient thermal management is also supporting Modine’s business growth.
The Climate Solutions segment increased 43 percent, while data center cooling sales surged 73 percent and exceeded $1.1 billion.
Modine is investing more than $100 million to expand clean manufacturing capacity across North America. The expansion includes a third facility in Calgary, Alberta; a new operation in Dallas, Texas; and major facility conversions in Grenada, Mississippi; Franklin, Wisconsin; and Jefferson City, Missouri.
With Scope 1 and Scope 2 emissions down 25 percent from FY2018, energy intensity reduced 43 percent, on-site renewable generation reaching 5.24 million kWh and its 2030 energy and water targets already surpassed, Modine is shifting its sustainability strategy toward the next phase of carbon reduction, renewable energy expansion and resource-efficient growth.
SHAFANA FAZAL
