Company to reduce Scope 1-2 emissions intensity by 5% per year from 2021 to 2030
GLOBAL minerals company Sibelco have unveiled their target to reduce Scope 1-2 emissions intensity (tonnes CO2/revenue) by 5% per year from 2021 to 2030 (37% cumulatively), in line with best practices promoted by the Science Based Targets initiative (SBTi). An additional target for Scope 3 emissions will be confirmed next year after further consultation with customers and suppliers.
The 5% per year Scope 1-2 intensity-reduction target is understood to be one of the toughest set to date by any business in the industrial minerals sector, and the company will be investing approximately €90 million in new technologies and operational excellence initiatives over the next nine years to support its goal.
Sibelco say that by setting this ambitious reduction target, they are demonstrating their commitment to the zero-carbon transition aligned with the Paris Agreement and its goal to limit global warming to well below 2°C compared with pre-industrial levels.
Commenting on the new target, Sibelco’s chief executive officer, Hilmar Rode, said: ‘We are committed to supporting the world’s transition to a zero-carbon economy. The ambitious target we have set ourselves for Scope 1-2 emissions, and will next year set for Scope 3, is central to our overall sustainability strategy and we will work closely with all stakeholders to achieve our goal.’
Meanwhile, separately, Sibelco have announced half-year results that reflect a recovery in most of the sectors served by the company. Revenue and EBITDA were back above the levels of the equivalent period in 2019 and the company also generated positive cash flow and an improved return on capital employed.
For the first six months of 2021, Sibelco’s continuing operations generated a 17% increase in revenue, which was up from €700 million to €816 million, driven primarily by higher sales volumes in most end-markets. EBITDA improved by 56% from €94 million to €147 million.
Commenting on the results, Mr Rode said Sibelco could be pleased with the rebound shown in the first half of 2021 but warned that this should be tempered with some caution. ‘Most industries, particularly in Europe, are far from a return to long-term structural growth and competitive pressure and cost inflation remains intense,’ he said.
