The vital role of businesses in reaching Net-Zero by 2050
We are proud to announce that our near and long-term science-based emissions reduction targets have been approved and validated by the Science Based Targets initiative (SBTi). Our science-based Net-Zero target by 2040 has also been verified.
Science-based target setting gives businesses a clear view of the immediate changes that are needed in order to reach ambitious climate goals. It supports organisations to tailor their targets and verifies that these are measurable and achievable in the time frame specified.
So, what are our targets?
Overall Net-Zero Target by 2040. We are committed to reach Net-Zero GHG emissions across the value chain by 2040.
Near-term Targets. We commit to reducing absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a 2021 base year, as well as reducing absolute Scope 3 GHG emissions by 50% within the same timeframe.
Long-term Targets. We commit to reducing absolute Scope 1 and 2 GHG emissions 90% by 2040 from a 2021 base year, and to reduce absolute Scope 3 GHG emissions 90% within the same timeframe.
What is the Science Based Targets initiative (SBTi)?
The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve Net-Zero emissions before 2050.
The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.
What are science-based targets?
Science-based targets are emissions reduction targets in line with what the latest climate science says is needed to meet the goals of the Paris Agreement - to limit global warming to well-below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C.
Science-based targets show companies how much and how quickly they need to reduce their greenhouse gas emissions in order to be consistent with keeping warming below the most dangerous levels.
Why does it matter?
The latest climate science from the IPCC - described by the UN as “code red for humanity” - shows it is still possible to limit global temperature rise to 1.5°C, but we are dangerously close to that threshold. The next few years are therefore extremely critical, and companies worldwide have a vital role to play in helping achieve transformation at the pace and scale that is needed.
Setting emissions reduction targets grounded in climate science has been a key priority for companies, including adm. This is because science-based targets represent best practice in setting targets and form the backbone of comprehensive corporate climate change strategies.
At adm, our approved science-based targets are consistent with reductions required to keep warming to 1.5°C, the most ambitious goal of the Paris Agreement. In doing so, we strive to help prevent the most damaging effects of climate change. We strongly encourage our stakeholders to join us on this journey and align with climate science by committing to science-based 1.5°C and Net-Zero targets.
Next steps for adm
We have taken the first steps towards developing a Net-Zero strategy and carbon reduction roadmap. Direct emissions reductions (decarbonization) will be prioritized, and all residual emissions will be neutralized in line with SBTi criteria before reaching Net-Zero emissions.
As stipulated in our roadmap, we are determined to work closely with our various stakeholders, including supply chain partners, clients, and employees to demonstrate climate leadership by reducing the impact of our supply chain emissions (Scope 3), with Purchased Goods and Services’ (Category 1) being our key emissions hotspot. Category 1 emissions comprise 77% of adm’s Scope 3 footprint and therefore are the most material component of the near-term reduction target. We will reduce these emissions through several methods, including: product redesign supported by our Green Design Tool, engagement of key suppliers in renewable energy usage, encouraging material innovation, use of recycled materials, and collaboration with clients on product mix. We also recognize the importance of the role of leadership, change management, and building a culture of sustainability in driving this agenda forward.