Orica speeds decarbonisation efforts

Chemicals and explosives technology manufacturer Orica today announced accelerated climate change targets.

The Melbourne company has invested to deliver significant reductions in net operational Scope 1 and 2 greenhouse gas (GHG) emissions, according to the company.

A forecast 19 per cent emissions reduction from FY2019 levels by the end of FY2023, successful low-emissions technology deployments, coupled with increased policy certainty by the Australian Government, has given the company the confidence to accelerate and expand on its climate change commitments.

Orica committed to:

• An increased target to reduce net operational Scope 1 and 2 emissions by at least 45 per cent by 2030, from 2019 levels – an uplift from 40 per cent
• A new short-term target to reduce net operational Scope 1 and 2 emissions by 30 per cent by 2026, from 2019 levels
• And a new ambition to reduce Scope 3 emissions by 25 per cent by 2035, from 2022 baseline levels.

CEO Sanjeev Gandhi said Orica had also expanded the boundary of its 2050 net zero ambition, to include material Scope 3 emissions sources arising from purchased goods and services and the use of Orica’s sold products – primarily bulk explosive detonation.

Gandhi said: “Orica is taking action on climate change and expecting to deliver at least a 19 per cent emissions reduction by the end of FY2023.

“We are also accelerating our commitments and expanding the scope – building a credible pathway towards achieving our ambition of net zero emissions by latest 2050 while positioning our business for a lower carbon world.”

Ghandi said the strength of the underlying business was expected to continue in FY24.

Gandhi said: “Our prudent balance sheet positions us well to manage the volatile external environment, supporting further business growth, climate change initiatives and seeking to deliver improved shareholder returns.”

Picture: Orica/Kooragang Island Manufacturing Plant