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The worldwide demand for electricity is expected to rapidly increase, this paired with the impact of climate change makes the sustainability of the energy sector a matter of urgency. 

µÂÖÝÆË¿ËÔÚÏß is following an ambitious strategy to drive decarbonization with targets across the value chain that are approved by the Science Based Targets initiative (SBTi). We have the technology, innovations and expertise and are working with our customers, suppliers, and partners to transition to a more sustainable world.

Our biggest lever for decarbonization is through our portfolio of products that help our customers reduce their emissions.  Our goal is to reduce absolute scope 3 greenhouse gas emissions from use of sold products 28% by 2030 from a 2019 base year [SBTi approved].

The bulk of emissions will be reduced through measures such as portfolio adjustments, fuel shifts and emission removal technologies. We expect most of our emissions reductions from sold products will happen after 2030, since we believe that markets and technologies still need to mature and scale. 

Our portfolio levers are:

• Coal exit
• Energy efficiency & digitalisation, e.g. waste heat recovery, combined heat and power
• Increasing renewables & electrification, e.g. transmission, storage, e-drives
• Fuel shift & GHG free products, e.g. green fuels, blue portfolio
• Emissions removal technologies, e.g. carbon capture and storage (CCS, BECCS, DAC)

Our goal is to reduce our relative Scope 3 GHG emissions from purchased goods and services as well as transportation and distribution by 30% per procurement volume (€ spent) until 2030 based on fiscal year 2018.

Our suppliers are an important part of the value chain, and we encourage them to take climate protection measures. We run our Carbon Reduction@Suppliers Program, in cooperation with an external service provider, offering an economic model based on an input/ output analysis that identifies the CO2 footprint of all suppliers.

To further increase transparency regarding supplier engagement for decarbonization in fiscal year 2024, we encouraged more than 3,400 suppliers – corresponding to more than 75% of the carbon footprint in our supply chain – to participate in our decarbonization due diligence assessment (DDA) and report on their measures.

Becoming climate neutral in our own operations is an integral part of the sustainability journey for µÂÖÝÆË¿ËÔÚÏß.

We have committed to become climate neutral in own operations by 2030 and have launched our Climate Neutral Program to achieve this ambitious target. This includes reducing absolute scope 1 and 2 greenhouse gas emissions by 46% by 2025, compared to 2019.

Our levers are:

• Using renewable electricity: Given that µÂÖÝÆË¿ËÔÚÏß had met its target of sourcing 100% of its global electricity from renewable sources in fiscal year 2023, we worked on increasing the amount of electricity produced at our own sites in the reporting year.

• Reducing the consumption and electrification: We have energy efficiency projects in place at various locations for buildings and process optimization.

• Reducing SF6 emissions: SF6 emissions in our operations originate from products in our Business Area Grid Technologies. With the expansion of our Blue Portfolio, together with the stringent measures in our facilities, we have set a target of reducing SF6-related emissions by 60% by 2030 compared to a 2019 baseline.

• New mobility concepts: We are aiming for 100% CO2-neutral benefit cars by 2030 through implementation of our car policy globally.

• Use of biomethane: Numerous sites are utilizing biomethane in their operations.

• Installation of heat pumps: The Grid Technologies Business Area has installed heat pumps at some of its transformer manufacturing sites to replace natural gas in drying processes. Due to the use of green electricity, the new drying ovens are considered climate neutral.