Adjusting Our Climate Targets

In 2021, we at thyssenkrupp Materials Services launched our sustainability strategy called "BEYOND". As one of the global leaders in materials distribution and services, we aimed to operate in climate-neutral by 2030. In recent years, we have made significant progress with determination and customer-oriented solutions, achieving notable success. Greenhouse gas emissions (CO2e) in our area of responsibility (Scopes 1 and 2) are decreasing. We have already saved around 75,000 tons, this corresponds to an emission reduction of around 40 percent.. We have expanded our product range to include CO2-reduced products, and we are using alternative drive systems for transportation. Nevertheless, we must update our climate targets this year.

 

There are two reasons for this. First, developments have fallen short of expectations. For example, the global expansion of renewable energy and the corresponding infrastructure have not met expectations. At the same time, terms have been adapted to reflect the current state of knowledge, such as the definition of "climate neutral". In concrete terms, we would need to rely on compensation mechanisms much more than originally planned to achieve our goal of climate neutrality by 2030. This contradicts our understanding of sustainability. We believe that we must exhaust all options for reducing emissions before considering offsetting. Therefore, we are adjusting our climate targets and plan to reach "net zero" by 2040. Under this revised goal, we will only offset unavoidable emissions.

Targets only make sense if they are achievable. That is why the adjustment at this point in time was just logical. It establishes a realistic and transparent foundation for our climate goals with minimal compensation. This is supported by concrete measures and investments, for which we are allocating additional funds. Our ambition remains to play a pioneering role in sustainability while supporting our customers in reducing their emissions.

Daniel Wodera
CFO of thyssenkrupp Materials Services

This in no way means that we are cutting back on our efforts – quite the contrary. In fact, we will increase our efforts and invest in additional resources. We are particularly focusing on sustainable drives for our truck fleets, such as using biodiesel and HVO fuels, as well as expanding electric charging stations in North America. Our El Puig site in Spain shows that our “BEYOND” sustainability strategy is on the right track. In 2025, the site will produce more renewable energy than it consumes. Other operating units are planning to meet their 2030 climate targets as well.