Ferrexpo PLC (LSE:FXPO) said it has committed to achieve net zero carbon emissions from its operations by 2050 as the world's third-largest exporter of iron ore pellets to the steel industry set out its inaugural decarbonisation targets.
The London-listed company said it has undertaken an initial commitment to achieve a minimum 30% reduction, from 2019’s levels, in combined Scope 1 and 2 emissions by 2030.
The Green House Gas Protocol of 2001 set out three categories of emissions.
Scope 1 covers emissions that a company makes directly and Scope 2 are the emissions it makes indirectly such as through the energy supplied on its behalf by another company.
"Whilst iron ore pellets offer our customers the opportunity to significantly reduce carbon emissions already, it is important to signal a clear intention to decarbonise our own operations,” said interim chief executive Jim North.
“It is on this basis that we have adopted the targets announced today, to demonstrate both our focus on climate change and our understanding of the importance of decarbonisation.”
Ferrexpo has also appointed climate change specialists Ricardo PLC (LSE:RCDO) to help jointly develop science-based decarbonisation targets as a second-phase of publishing carbon commitments.
“Through this collaboration with Ricardo, we expect to advance our targets and develop a clear roadmap of reducing Scope 1, 2 and 3 emissions, whilst also identifying market and regulatory risks and opportunities, modelling of climate change scenarios and looking at the environmental footprint of a Ferrexpo pellet beyond the steelmaking process,” added North.
“In the 18 months to June 2021, the group has already recorded a carbon reduction in excess of 20%,” he said, referring to combined Scope 1 and 2 emissions on a per tonne basis.
In 2020, Ferrexpo produced 11.2 million tonnes of iron ore pellets from its operations in Ukraine.