Our role in the transition
Our technologies and our dedicated teams address the challenges faced by our customers and society. Over the past few years, we have intensified our efforts to develop efficient technologies and solutions that support the transition to a low-carbon society.
Climate change is the biggest challenge of our time. Significant changes are necessary to limit global warming and to stay within the planetary boundaries. We are committed to being part of the solution by reducing the environmental impact of our operations and products. At the same time, the demand for new energy sources, transportation modes, and automation presents a significant business opportunity for us.
Climate targets for 2030 and beyond
In 2021, we committed to reduce both direct and indirect greenhouse gas emissions across our value chain in line with the Paris Agreement. Our 2030 targets have been validated by the Science Based Targets initiative (SBTi).
For our own operations (scope 1 and 2), we aim to reduce emissions to keep the global temperature rise below 1.5°C compared to pre-industrial levels. We also aim to reduce value chain emissions (scope 3) to keep the temperature rise well below 2°C. As part of our climate efforts, we will develop a climate transition plan by the end of 2026 including long-term targets beyond 2030 for scopes 1, 2, and 3.
More than 90% of our greenhouse gas emissions occur when our products are being used. Our customers' access to renewable energy is a key challenge.
Major reduction of own emissions
We are making good progress in reducing emissions from our owned or controlled sources and purchased energy. Our efforts include energy-saving measures and increasing the use of renewable energy. For example, using biofuels in product testing, shifting to electricity from renewable sources in our facilities, and installing solar panels. Reducing emissions from company vehicles is another key area.
Since 2019, we have significantly reduced emissions from our own operations, with electricity from renewable sources being a major driver. However, the availability of renewable energy in some markets remains a challenge.
Value chain emissions is a challenge
While a vast majority of our products are already electrified, we have not yet managed to reduce the total amount of emissions generated during the use phase. This is mainly due to increased sales and limited access to renewable electricity for our customers. Reducing emissions in the value chain is a shared challenge among industrial companies. We are dependent on new technologies and infrastructure.
More than 90% of our value chain emissions occur when customers use our products. To reduce the emissions, we focus on increasing product energy efficiency and continue the electrification of the small share of products that are not yet electrified. We also aim to reduce emissions through better logistics planning, low-carbon transport modes, and collaboration with transport partners.
