Utility company ENGIE has unveiled its plans and progress towards achieving net zero emissions.
The French-based multinational plans to hit net zero by 2045, putting the company five years ahead of the Intergovernmental Panel on Climate Change (IPCC) recommendation of achieving net zero by 2050.
Achieving net zero means tackling both direct and indirect three emission scopes, and ENGIEs roadmap aims to reduce all emissions by a minimum of 90% between 2017 and 2045, leaving only 10% to be offset via other means.
The company has set interim targets, which were awarded the “well below 2 °C” certification by the Science-Based Targets initiative (SBTi) in February, covering four areas:
- Reducing emissions from its energy production (scopes 1 and 3) by 59%
- Reducing emissions stemming from gas sales (scope 3) by 34%
- Reducing carbon intensity of energy production (scope 1) and energy consumption (scope 2) by 66%
- Reducing carbon intensity of energy sales (scopes 1 and 3) by 56%
Turning goals to action
The latest report highlights progress in reducing emissions already. 2022 saw emissions total 174 million tonnes of CO2e (carbon dioxide equivalent), a 33% decrease from 2017 levels.
To achieve its interim goals, the company has outlined a roadmap of actions:
- Abandon coal completely by 2025 in Europe and worldwide by 2027
- Accelerate renewable energy efforts, aiming for 58% of electricity generation from solar, onshore, and offshore wind power by 2030
- Install 10 GW of battery storage capacity by 2030 to enhance energy mix flexibility and support renewable production
- Increase the use of green gases
To support its ambitions, ENGIE plans to allocate €22-25 billion (£19-£22bn) for investments over the upcoming 3 years. About 75% of these will be in in-line with the European taxonomy, which designates sustainable economic activities.
Notably, around 70% of the investments will be directed towards renewables and other energy solutions, whilst up to 10% of the investments will be concerned with batteries and greenhouse gases.
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Bringing along suppliers and customers
To measure the impact of its decarbonisation efforts, ENGIE has developed a benchmark known as “emissions avoided” to quantify the reductions in carbon footprint stakeholders achieved through its products and services offerings.
By 2030, ENGIE hopes to have supported its customers in avoiding 45 million tonnes of CO2 annually, roughly equivalent to the annual emissions from over 9 million cars.
ENGIE has set a target for 2030 to have all its top 250 suppliers (excluding energy purchases) either aligned with or certified by the Science-Based Targets initiative (SBTi). Currently, only 23% of these suppliers meet this requirement.
About ENGIE
Established in 2008, ENGIE is headquartered in France and has operations spanning across more than 70 countries, serving millions of customers worldwide. The company’s portfolio encompasses activities such as power generation from renewable and conventional sources, transmission, and distribution of electricity, as well as providing energy-related services like energy efficiency solutions and facility management.
Employing over 170,000 people worldwide, ENGIE is considered one of the largest energy companies globally.
ENGIE focuses on driving the energy transition and has made significant investments in renewable energy sources, such as wind and solar power, to reduce its carbon footprint and support sustainable development.
Alongside its utility operation, ENGIE has a consulting arm called ENGIE impact. ENGIE Impact specifically partners with corporations, governments, and municipalities worldwide to implement the necessary transformations to reduce their carbon footprint and achieve their goals on the path to net zero. This includes establishing actionable roadmaps to managing on-the-ground execution.
