News: Fortescue aims for zero carbon emissions by 2030.
(Reuters) – Australia’s Fortescue Metals Group announced on Monday that it would go carbon neutral by 2030, ten years ahead of its previous goal of tying compensation across the company to emissions-based targets.
The announcement, which includes direct and indirect emissions, comes as colleagues Rio Tinto and BHP Group are also increasing their focus on renewable energy and investors are increasingly demanding accountability to ensure companies disclose, track and meet emissions targets.
Rio Tinto set new targets last month to reduce emissions from its customers, particularly the heavily polluting steel industry, along the lines of BHP Group and Glencore, and added climate protection targets to short-term incentive plans.
Unlike his colleagues, Fortescue does not provide estimates of customer emissions, arguing that this would be double-counted under the United Nations, which obliges states to take responsibility for emissions within their borders.
The world’s fourth largest iron ore miner said it will include carbon emissions targets in its formal compensation structure, including short- and long-term incentives across the company.
Fortescue said it will focus more on green energy and its Fortescue Future Industries unit will develop green power, green hydrogen and green ammonia projects in Australia.
Green hydrogen is a carbon-free fuel made by electrolysis that uses renewable energy from wind and sun to break water down into hydrogen and oxygen. It is increasingly promoted as a means of decarbonizing emission-intensive heavy industry and transport sectors.
“While our green energy and industrial initiatives could one day significantly outperform our iron ore business due to global demand for renewable energy, our commitment to iron ore and resources remains unfeasible globally,” said Chairman Andrew Forrest.
Emissions data and performance against targets are reported annually as part of Fortescue’s annual reporting. Base and annual emissions data are calculated on a fiscal year basis.
Coverage of Shashwat Awasthi in Bengaluru; Editing by Sam Holmes
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