Company Aims for Science-Aligned Targets to Drive Decarbonization
Finnish energy giant Fortum has taken a significant step towards decarbonization by committing to the Science Based Targets initiative (SBTi), a leading body for ambitious climate action in the business world.
This move comes after Fortum submitted a formal commitment letter and underwent a due diligence process. The company aims to set near- and long-term emissions reduction targets that align with the latest climate science, as outlined by SBTI.
The urgency of climate action is clear. According to Fortum, global greenhouse gas emissions need to be halved by 2030 and reach net-zero by 2050 to limit global warming to 1.5 degrees Celsius. As the power sector is responsible for nearly three-quarters of global emissions, decarbonization in this area is critical.
“The power sector has a key role to play,” said Markus Rauramo, Fortum’s President and CEO. “We at Fortum, as one of the cleanest power generators in Europe and with a unique ability to deliver clean energy at scale, want to be a leader in the clean energy transition. Setting ambitious climate targets aligned with the SBTI Net-Zero Standard is a crucial step in achieving that goal.”
Fortum’s commitment to SBTI signifies a major milestone in its sustainability journey and aligns with its overall strategic direction. This move underscores the company’s dedication to reducing greenhouse gas emissions not only within its own operations but also across its value chain, paving the way for a low-carbon future. Fortum remains focused on delivering reliable clean energy while driving decarbonization efforts in Nordic industries.
The company’s commitment to SBTI builds on its existing sustainability strategy launched in March 2023. Fortum will now further develop its transition plan, establishing specific near- and long-term emissions reduction targets that will be validated by SBTI. These targets will be aligned with the SBTI Net-Zero Standard and will encompass Fortum’s exit from coal, emission reductions within its operations, and a focus on reducing the emissions footprint of its electricity sales.
The Science Based Targets initiative is a global partnership that empowers businesses to set ambitious emissions reduction targets that reflect the latest climate science. The initiative is a collaborative effort between CDP, the United Nations Global Compact, World Resources Institute (WRI), World Wide Fund for Nature (WWF), and the We Mean Business Coalition.
For more information on Fortum’s sustainability efforts and its initial transition plan, please refer to the company’s latest Sustainability Report or visit their website.