Orica aims higher on emission reduction goals

afr.com:

Explosives giant Orica has ramped up its targets for direct emissions reduction and has introduced an “ambition” to cut scope 3 emissions, bucking the broader trend for some energy-intensive companies to dial back on near-term climate commitments.

The acceleration of the targets – including increasing its 2030 target for direct emissions to at least a 45 per cent cut from 2019 levels compared with a previous target of 40 per cent – comes amid pressure from groups including Climate Action 100+ that the manufacturer upgrade its goals on decarbonisation and climate policy.

Oricia CEO Sanjeev Gandhi says hard-to-abate industries need government support to cut emissions. Tertius Pickard

A nearer-term target has also been introduced, to cut direct emissions by 30 per cent by 2026 from the same baseline year. Chief executive Sanjeev Gandhi said actual reductions were forecast to be 19 per cent by the end of its 2022-23 financial year in a few weeks’ time.

For scope 3 emissions – those emitted by its customers – Orica is aiming to reduce the figure by 25 per cent by 2035, from a 2022 baseline, but the goal is defined as an “ambition” rather than a “target” as the manufacturer works out how it can definitely deliver on it.

Mr Gandhi told a sustainability investor briefing in Sydney on Tuesday that the increased ambitions on climate were enabled by the successful deployment of low-emissions technologies, along with increased policy certainty by the federal government, including the safeguard mechanism.

The Albanese government is also considering the introduction of a cross-border carbon tax, which Orica has strongly supported to level up competition with rivals overseas and prevent carbon “leakage”.

Orica restated its commitment