Company phasing out its own fossil gas use with SEK3 billion decarbonization investment frame
SKF, the Swedish bearings, seals, and lubrication specialists, are to allocate SEK3 billion (c.£220 billion) to meet their energy and decarbonization goal by 2030, which is a key element of the Group’s strategy. The Group has also decided to ban any fossil fuel investments in its own operations, as well as to replace direct fossil gas use with renewable energy or approved non-fossil fuel alternatives by 2029.
The SEK3 billion investment frame is to be exclusively used to fund decarbonization activities, mainly energy efficiency and the removal of fossil gas use in manufacturing processes and heating buildings within the Group’s operations around the world. The frame will be utilized at around SEK500 million (c.£370 million) per year up to the end of 2028.
SKF president and chief executive officer Rickard Gustafson said: ‘I am very pleased to announce this next step in our decarbonization and net-zero approach. This is just another example of our commitment towards the achievement of the goals set out in the Paris Climate agreement. We act on this commitment both with actions like this and through all our various engagement and advocacy activities.’
He added: ‘The scale and urgency of the climate crisis demands an even greater focus and speed of action. These investments, coming with a clear frame, will help us reach our goal to decarbonize our own operations by 2030. To achieve this is an absolute key element of our strategy.’
SKF have reduced their Scope 1 and 2 emissions by 46% since 2015. This has been achieved by focusing on energy efficiency as well as efficient production and use of materials, while continually increasing the share of renewable energy used in the Group’s operations around the world. Today, more than half of the electricity used in SKF’s operations comes from renewable energy sources.