Our reduction pathway

We intend to significantly reduce GHG emissions from our corporate activities and we are committed to use our position as investor and operator to engage our portfolio companies to implement their own multi-year reduction pathways.

The Science Based Targets initiative (SBTi) has verified our group GHG emissions reduction targets. They are aligned with the Paris Agreement to keep global warming to 1.5 degrees Celsius.

Our validated commitments include (see also image below):

• Operational emissions: We will reduce our corporate emissions in line with a 1.5 degree climate scenario by achieving a 100% reduction in absolute scope 1 and 2 GHG emissions by FY2028 from a FY2020 base year. Upon realising this reduction, we commit to maintaining the emissions at zero for the future.
• Supply chain emissions: We will reduce our absolute corporate scope 3 GHG emissions from air business travel by 30% by FY2030 from a FY2020 base year.
• Portfolio emissions: We commit to 50% of our portfolio companies, measured by invested capital, will have set their own science-based reduction targets by FY2030.

We have applied the SBTi guidance for financial institutions and investors to set our portfolio coverage target and will leverage our influence as shareholder and board member to engage and support our portfolio companies to define their climate journey. Details of our portfolio can be found in the supporting document.

We have a longstanding tradition to work closely with our subsidiaries to support their GHG data collection, footprint measurement, emissions management and reduction target development, and with this Portfolio Coverage target, we commit to ensure this happens in alignment with the Paris Agreement and ambition to limit global warming to 1.5°C.

We believe in the transparency of the challenges we face and the successes we achieve, so we will report annually on our progress against these targets.