Fertiliser, chemicals and explosives group Orica today announced its ambition to achieve net zero emissions by 2050, eclipsing its previously announced medium-term target to reduce scope 1 and 2 operational emissions by at least 40 per cent by 2030.
The new ambition covers the company’s scope 1 and 2 greenhouse gas (GHG) emissions and its most material scope 3 GHG emission sources.
Scope 1 covers direct emissions from controlled sources, scope 2 covers indirect emissions from the purchase of energy, and scope 3 includes indirect emissions in a company’s value chain.
To advance its net zero emissions ambition, Orica will:
- Continue to reduce its operational footprint and pursue operational emissions reductions by deploying tertiary catalyst abatement technology, sourcing renewable energy and optimising energy efficiency and industrial processes
- Collaborate with its suppliers to source lower emissions intensity ammonium nitrate (AN) and ammonia to reduce Orica’s scope 3 emissions
- Prioritise lower carbon solutions such as lower carbon AN, as well as new products, services and technology offerings.
- And report progress.
Orica CEO Sanjeev Gandhi, said the company’s new ambition of net zero emissions by 2050 showed Orica’s commitment to playing a part in achieving the goals of the Paris Agreement.
Ghandi said: “This is a strong signal that the decarbonisation of Orica will, and must, continue beyond 2030 and requires a collaborative approach across all of our stakeholders.
“We’re making solid progress having already achieved a 9 per cent emissions reduction in FY2020 and further reductions this financial year.
“We’ve taken our 2030 medium-term target and extended our planning over the long term, developing a credible roadmap to support our ambition to achieve net zero emissions by 2050.”
Orica’s ambition statement:
“Building on our commitment to reduce our operational greenhouse gas (GHG) emissions by at least 40% by 2030, we have now set an ambition to achieve net zero emissions by 2050. Our net zero emissions ambition covers our global scope 1 & scope 2 GHG emissions under our direct control, and material* scope 3 GHG emission sources. We will engage with our suppliers and customers to support technological solutions for decarbonisation. Achieving this ambition will require effective government policy frameworks, supportive regulation and financial incentives, and access to new low-carbon technologies operating at commercial scale.”
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