Climate change and carbon emissions

In 2006, we set a target to reduce our Scope 1 and 2 greenhouse gas (GHG) emissions by 75% by 2026. We accomplished this goal in 2021 – demonstrating our commitment by setting ambitious goals and taking action to shrink our carbon footprint.

Because we accomplished our previous goal, in 2022 we set a new target to achieve net zero GHG emissions for Scope 1 and 2 sources by 2030 as compared to our baseline year of 2020 (the Net Zero Goal)⁽¹⁾. This target received validation from SBTi in March 2023⁽²⁾. We see SBTi validation as an important stamp of independent assurance that this near-term target is credible, anchored in sound science, and aligned with the Paris Climate Agreement’s goal of limiting global temperature increase to 1.5°C.

¹ For purposes of this 2023 Sustainability Report, we define “net zero” as the state achieved when our anthropogenic Scope 1 and 2 GHG emissions to the atmosphere are balanced by anthropogenic removals. Our definition of net zero and our Net Zero Goal are limited to our Scope 1 and 2 GHG emissions sources. Our Net Zero Goal is not validated in connection with the Science Based Targets Initiative’s Corporate Net-Zero Standard or classified as a “net zero” target by the Science Based Targets initiative. Carbon offsets may be used here in addition to standard emissions reductions to obtain net zero emissions by 2030.

² SBTi deemed this target to conform with SBTi Criteria and Recommendations (version 4.2). This target was not validated in connection with SBTi’s Corporate Net-Zero Standard or classified as a “net zero” target by SBTi.

Our journey to net zero

Our journey to net zero is specific to Scope 1 and Scope 2 GHG emissions. Through 2023 we have already reduced our aggregated Scope 1 and Scope 2 GHG emissions by over 50% as compared to our baseline year.³

While our priority is to reduce our Scope 1 and 2 GHG emissions, we also intend to explore viable options to address residual, harder-to abate Scope 1 and 2 emissions. These include potential technological developments or tools such as renewable energy credits (to address Scope 2 emissions) and carbon credits (to support climate mitigation activities beyond our value chain).

³ ISOS Group, Inc. (ISOS) has provided independent assurance of the energy consumption, Scope 1 and Scope 2 GHG emissions, and Scope 2 GHG emissions data in this report. GHG emissions were calculated using the operational control methodology specified in the GHG Protocol. Several smaller Scope 1 GHG emissions sources (e.g., refrigerant releases and mobile combustion sources) were excluded from ISOS’s review.