Image representing importance of carbon emission reduction.
- Fortescue strengthens focus to become a supplier of green iron ore.
- ASX:FMG targets to achieve net-zero Scope 3 emissions by 2040.
- Fortescue Future Industries (FFI) to be the key enabler in the process.
Iron ore exporter Fortescue Metals Group Ltd (ASX:FMG) has announced a bold scope 3 emissions target for itself. It is pegging strongly in green energy with and aims to achieve net-zero Scope 3 emissions by 2040. The target is aimed to address emissions across Fortescue’s global value chain, including raw steel manufacturing which makes for 98% of its’ Scope 3 emissions.
How will FMG achieve emissions target by 2040?
- FMG’s targets to reduce emissions by working with customers on using technologies that reduce emissions from iron and steel manufacturing.
- It is also improving its supply of green hydrogen and ammonia from Fortescue Future Industries (FFI).
- It has also decided to decarbonize its fleet of eight ore carriers on priority. It is also engaging with its shippers to reduce and eliminate shipping emissions.
- FFI has also set a target of producing 15 million tonnes of green hydrogen per year by 2030, underpinning opportunities for emissions reduction.
- Furthermore, FMG is to achieve net zero Scope 3 emissions by 2040 being its’ long term goal.
- FMG’s medium-term targets enable reduced shipping emissions by 50% till 2030, as measured from FY21 levels.
- It also aims to reduce emissions intensity from steel manufacturing by customers by 7.5% till 2030 and 100% by 2040.
Despite this FMG shares are continuing their downward rally on ASX and are trading at AU$14.010 per share as of 11:54 AM AEST. FMG shares are at their three-month low on ASX and are currently trading 2.7% lower than the previous close.
FMG’s investments in green technologies and research and development focused green production of iron ore shall help Fortescue become the first major supplier of green iron ore globally. Moreover, as claimed by FMG, it shall pave the way for a decarbonised iron and steel industry.