Orica announces upgraded climate change targets

Orica has today announced accelerated climate change targets, including an increased target to reduce net operational Scope 1 and 2 emissions by at least 45% by 2030, from 2019 levels — an increase from 40%.

The company also announced a new short-term target to reduce net operational Scope 1 and 2 emissions by 30% by 2026, from 2019 levels.

Orica said that since 2019 it has invested to deliver significant reductions in net operational Scope 1 and 2 greenhouse gas (GHG) emissions. Successful low-emissions technology deployments, coupled with increased policy certainty by the Australian Government, has given the company the confidence to accelerate and expand on its climate change commitments, according to a press release.

Orica remains committed to its existing renewable electricity targets, to source 60% renewable electricity by 2030 and 100% renewable electricity by 2040 (excluding small sites, or in countries where credible sourcing options do not exist).

Acknowledging that Scope 3 is a material portion of the company’s overall emissions profile, Orica has worked to establish confidence in its emissions baseline and broad technology pathways towards value chain decarbonisation. As a result, Orica has introduced a new ambition to reduce Scope 3 emissions by 25% by 2035, from 2022 baseline levels.

“We recognise the challenges of addressing emissions across our value chain and are committed to partnering with our suppliers and customers to work towards these new commitments,” said Orica CEO Sanjeev Ghandi.

Image caption: Tertiary abatement technology installed at Orica’s Kooragang Island manufacturing plant.