Ambitious mitigation plans in place
Reducing carbon emissions by 50% throughout out whole value chain
Climate change mitigation is an integral part of our approach to sustainable business and plays an important role in our company strategy. It brings risks, but also creates opportunities. In 2021, we announced an ambitious target of reducing carbon emissions across our full value chain by 50% by 2030, taking 2018 as our baseline.
Our ambitions are aligned with the Paris Agreement, which aims to limit climate change and ensure the global temperature doesn’t rise more than 1.5˚C above pre-industrial levels. Approved by the Science Based Targets initiative (SBTi), this will help to drive our innovation and collaboration with our value chain partners, including customers and suppliers.
The commitment includes our own operations (Scope 1 and 2), as well as Scope 3 upstream and downstream. Scope 3 covers purchased goods and services, application and use of our products, and end-of-life. Together, this covers around ~96% of our total emissions.
We’re already looking for innovative ways to tackle the issue and have a clear plan to reach our Scope 1 and 2 commitment by transitioning to 100% renewable electricity and reducing our energy by 30% compared with 2018.
Our ambition on renewable electricity is progressing well, with our operations in Europe having fully switched over by January 2022. Our current total share of renewable electricity use is 45% globally, approaching our 2025 interim target of 50%. In total, 44 of our locations now use 100% renewable electricity, with 23 sites using solar panels as a supplementary source of energy. We plan to increase this number in the near future.
To drive this continuous improvement, 20% of our Board of Management’s long-term incentive is linked to environmental, social and governmental (ESG) goals, including energy use and renewable electricity. In addition, climate change is included in our risk assessment.