Rheem Sustainability Targets Achieved Ahead of Schedule

15 May 2025

Sustainability is always at the forefront of our minds at Rheem. As our products utilise energy to operate, we know we have a big responsibility to lead the way in New Zealand with sustainable processes and low-carbon products – and that’s why we set some big sustainability goals several years ago.  

By the end of 2025, our aim was to:

1. Launch a line of heating, cooling and water heating products that boast a 50% reduction in greenhouse gas footprint.^[1]
2. Reduce greenhouse gas emissions by 50% and achieve zero waste to landfill in our global manufacturing operations.^[2]
3. Train plumbers, contractors and key influencers on sustainable products or sustainable installation and recycling best practices.

Now, with eight months still up our sleeve, we have officially achieved all three of our goals! 

Goal 1: Launch a sustainable line of water heating products

Our first goal was to launch a sustainable product range that has at least a 50% reduction in its greenhouse gashouse footprint. This goal was based around our “Intelligent Products” sustainability pillar, which represents our mission to continue innovating with intent. We always aim to engineer solutions with lifetime sustainability in mind, including material selection, smart technology, and responsible recycling.

To achieve this goal, we introduced the AmbiPower heat pump water heater range in 2024. By utilising heat from the surrounding air, heat pump water heaters need less energy to create hot water than traditional heaters that rely purely on gas or electricity. This means that our AmbiPower range has a Coefficient of Performance (COP) of 4.5. In short, the COP is the ratio of how much useful heat the water heater produces for water heating to the power input into the water heater. The higher the COP number, the more efficient the heat pump is. So, for every kw of power input, Rheem AmbiPower water heaters will produce 4.5kw of useful energy! To put this in more relatable numbers, the AmbiPower can save Kiwi homeowners over 70% on their water heating energy costs. This also means that our first goal was achieved – we successfully launched a product range that met our ambitious sustainability criteria! 

Beyond the AmbiPower, we also launched Rheem Solar Solutions in 2023 – a new Rheem brand that offers solar panels, batteries, inverters, racking, and even EV chargers (everything you need to get started with solar). We’ve been providing hot water to Kiwi homes since 1958, so we saw expanding into renewable energy and helping more New Zealanders lower their carbon footprint through solar as a natural next step for us. We also installed a Rheem Solar Solution on our Avondale Factory, which further lowered our own operational carbon footprint.

Goal 2: Reduce greenhouse gas emissions and achieve zero waste

Our second goal was ambitious, but with the support of our global team, we were able to achieve zero waste at our Avondale factory in 2024. This goal was centred on our “Responsible Processes” pillar, which represents our ongoing efforts to work smarter and more sustainably, to consume fewer resources, generate less waste and ensure simpler, safer processes.

One of the most important steps toward achieving this goal was the 2023 Rheem Avondale Waste Audit. Over a 24-hour period, a team of volunteers – including members of our global sustainability team – collected and sorted every piece of waste produced at our Avondale site. The goal was simple: understand exactly what we were sending to landfill, and find better ways to recycle or reuse it.

The audit uncovered 105.5 kg of waste across three cubic metres. The good news was that the majority of this waste could already be diverted from landfill through our existing recycling streams – from bottles and cardboard to E-waste and plastic wrap. It also helped us identify new opportunities for diverting soft plastics, PPE, foam cutouts and more.

The data gathered from this audit helped us improve our diversion rate and refine our recycling systems. With these changes in place – and a continued focus on better solutions – we’ve now reached a point where we’re sending zero waste to landfill.

Goal 3: Train plumbers about sustainable products and processes  

Our third goal centred on our “Inspired People” sustainability pillar. Our aim is to hire and inspire our teams to be next-generation thinkers and responsible stewards of our industry, the greater community and the environment. As part of this, we wanted to ensure the plumbers we supply with Rheem products are educated about sustainability best practices.

Over the last two years, we’ve embedded sustainability training into all of our online courses through our dedicated Learning Management System (LMS). Plumbers, contractors and industry professionals across New Zealand now have access to up-to-date, practical knowledge on sustainable products, best-practice installations, and responsible recycling.

Beyond online learning, we’ve also hosted in-person training sessions nationwide – bringing together experts and professionals to share ideas, answer questions, and keep the conversation going around sustainability.

Looking Ahead

While we’re incredibly proud to have hit these goals ahead of schedule, our sustainability journey is far from over! We take our sustainability responsibilities seriously, and can guarantee that our three pillars will be central to all future decision-making at Rheem. We’ll continue to innovate, refine and lead across all areas of our business and industry, always striving for a low-impact future. 

[1] Rheem’s goal is to release by 2025 a line of heating, cooling, and water heating products that reduce greenhouse gas emissions by 50% as compared to products available in 2019. Reduction calculations will be based on the products’ use phase emissions only and utilise average emission factors to account for variability in electricity grids. Reduction calculations will not consider upstream or manufacturing impacts, but use phase emissions account for the majority of the products’ impact. At this time, these figures have not been independently verified by a third party.  https://www.rheem.com/about/sustainability/

[2] Rheem’s goal is to reduce greenhouse gas emissions by 50% by 2025 from a 2018 baseline. This metric will be based on intensity emissions normalised by units produced and includes Scope 1, 2, and elements of Scope 3, as defined by the Greenhouse Gas Protocol. At this time, these figures have not been independently verified by a third party. A Rheem plant is considered to have reached Zero Waste to Landfill when it achieves a rate of at least 90% diversion of nonhazardous solid waste away from landfill, waste-to-energy (WTE) and incineration, in line with the Zero Waste International Alliance standards and TRUE Zero Waste standards. At this time, these figures have not been independently verified by a third party.