Royal DSM announces 2030 emissions reduction target
The chemical supplier plans to cut its greenhouse gas emissions to 50 per cent by 2030.
Chemical supplier Royal DSM aims to halve its 2016 greenhouse gas (GHG) emissions from its own operations by 2030.
The acceleration of its initial 30 per cent reduction target is based on what the Dutch-based company calls “strong progress” over the past few years. The updated target provides a foundation for DSM to achieve net-zero by 2050, it said.
DSM’s new increased target has been reviewed and approved by the Science-Based Targets initiative (SBTi). The SBTi is a collaboration between the United Nations Global Compact, World Resources Institute (WRI), the CDP and the WorldWide Fund for Nature (WWF) to drive ambitious corporate climate action.
According to DSM, recent highlights that help accelerate its transition to net zero by 2050 include:
- DSM made significant progress with a ~19 per cent structural GHG improvement (versus 2016) by H1 2021. This is already ahead of the trajectory to achieve its initial 30 per cent Science-Based reduction target.
- DSM has doubled its internal carbon price from €50 to €100 per ton of CO2 to further guide its investments and operational decisions towards carbon neutral operations. This decision also reflects DSM’s ongoing commitment to and call for broader and deeper carbon pricing policies.
- DSM signed an additional power purchase agreement in July which means all its North American electricity needs will be 100% renewable starting from the end of this year. Through the power purchase agreement, DSM will contribute to the financing of a new solar plant in Texas which is expected to generate approximately 920,000 MWh of electricity for the US energy grid each year. With this additional agreement DSM is well positioned to outpace its target of purchasing 75 per cent of its global electricity needs from renewable sources by 2030 and to reach 100 per cent at the earliest possibility.
“As a purpose-led company we aim to drive sustainable growth. That’s why we’re proud to make a significant step-up in our ambitious validated science-based targets, to accelerate our route to net-zero by 2050 and to continue to lead the way in our industry to move to a net-zero future,” said Geraldine Matchett, Royal DSM co-CEO. “We have no time to waste, and the private sector has a crucial role to play in proactively delivering on the Paris Agreement.”