EN+ GROUP sets target, net-zero by 2050 and 35% GHG emission reduction by 2030

EN+ GROUP has publicized its ambition to become net-zero by 2050 and to reduce Greenhouse Gas ("GHG") emissions by at least 35% by 2030. These stretching targets cover complete emissions across all operations, which incorporate aluminium production plus heat and electricity production.

In 2019, the Group's metal business, UC Rusal, produced 6% of the world's aluminium and its power segment, EuroSibEnergo, generated over 64 TWh of clean hydropower. The Group believes that the targets announced on 18^th January 2021 represent the most ambitious carbon reduction targets yet seen in the global aluminium industry, setting a new standard in one of the most energy-intensive industries in the global economy.

The Board has approved targets of at least a 35% reduction in GHG emissions by 2030 and to be net-zero by 2050 (scope 1 and 2, as benchmarked against the Group's 2018 GHG emissions). This will require improvement and transformational innovation across the entire production chain. To drive the necessary changes, which will be unprecedented in scale, the Board has instructed the General Director of the Company to create the En+ Climate Change Taskforce led by Chief Operating Officer Vyacheslav Solomin (the "Taskforce") which will be responsible for the planning and implementation of the Company's climate change strategy. The Taskforce will report to the Executive Chairman, Lord Barker.

In the coming months, before publishing its final Net Zero strategy, the Group will engage in extensive consultations with all relevant external stakeholders, including suppliers, key customers, investors, local communities and relevant international experts, to publish a Group report on the pathway to Net Zero by 2050 and the reduction of GHD emissions by at least 35% by 2030 in September 2021, ahead of UN COP26 in Glasgow.

It is expected that the metal segment's targets will be verified and approved by the Science Based Targets initiative (SBTi) by August 2021. To achieve this, En+ Group will work with the UN Global Compact, a key partner of the SBTi.

The En+ Group believes that the achievement of these climate targets is in line with the Paris Agreement and European Green Deal, and supports the UN Sustainable Development Goals, which is essential to the global transition to a low-carbon economy.

Lord Barker of Battle, Executive Chairman of En+ said: "Once again the En+ Group is showing ambitious sector leadership on the biggest environmental issue of our time. These climate change targets and the roll-out of a detailed route map to meet them are yet more tangible evidence of our commitment to lead the global aluminium industry into the low-carbon economy. We will achieve this transformation with relentless scientific innovation and a change programme driven right across the whole group. This will require continued investment in major scientific advances such as our pioneering inert anode technology and critical industrial process improvements, as well as the implementation of net zero initiatives for the hardest 'last mile' emissions."

"The Group can draw on its long record of not just R&D but also execution excellence and experience in process optimisation: these are in the Group DNA. Our metals business has already massively overachieved in meeting existing carbon reduction targets. The target of emitting less than 2.7 tonnes of CO2 equivalent per tonne of aluminium (scope 1 and scope 2 from electrolysis) by 2025 was met in 2017! That is why, although I don't underestimate the huge challenges ahead in meeting these targets, we face them with growing confidence."

In May’20, Lord Barker signed up, alongside CEOs of 154 leading companies, to the largest ever UN-backed climate advocacy initiative, "Uniting Business and Governments to Recover Better". In September 2019, EN+ and a cohort of international businesses were commended at the UN Climate Summit for commitments to climate targets across their operations and value chains, with such targets being aligned with a target of limiting global temperature rises to 1.5 degrees above pre-industrial levels, entailing the achievement of net zero emissions by 2050.

Joan MacNaughton CB, Independent Non-Executive Director and Chair of the En+ Health, Safety & Environment (HSE) Committee said: "Two years ago the reconstituted En+ Group board set a new level of ambition for environmental performance. Today we take a huge step towards fulfilling that promise. We are determined to beat the leading edge of what this sector, being one of the hardest to abate, can do to transition to a low carbon business model."

Christopher Burnham, Senior Independent Director of En+ Group said: "The new En+ Board committed to implementing the highest levels of ESG across the company with a particular dedication to the best environmental stewardship. Today represents the result of this concerted effort led by Lord Baker, and the Board, to fulfil this commitment."

Evgenii Nikitin, CEO of UC RUSAL, said: “Doing responsible business is at the core of RUSAL’s operations particularly regarding high environmental standards. We have already made great progress in our drive towards a more sustainable future but today’s update is nothing like we have seen before in the industry. Through the use of our low carbon aluminium ALLOW which has a production carbon footprint five times lower than the industry’s average, this is proving transformational for the industry." 

"In addition, our wide range of tools from energy efficiency improvements to innovations such as inert anode assists us in our pledge to achieve the net-zero goal. As the market appetite for aluminium is anticipated to grow by more than 50% by 2050, the industry is looking at pathways to reduce its footprint and we are leading the charge in this process. Today, we call for action as we shape the agenda for net-zero aluminium.”