GEA ups ambitious climate targets and is the first company in the DAX index family to ask shareholders to vote on its path to net zero

Climate targets raised and submitted to the SBTi

GEA’s Climate Transition Plan 2040 aims to reduce greenhouse gas emissions to net zero at every link in the value chain by 2040. The company has now set the following climate targets compared with the base year of 2019: 

Introduction of a short-term target for 2026: 

• Reduction in GHG emissions from our own operations (Scope 1 and 2) by 60 percent by 2026. This target was originally set for 2030.

Medium-term targets for 2030 raised: 

• Reduction in GHG emissions from our own operations (Scope 1 and 2) by 80 percent (previously: 60 percent reduction) by 2030. 
• Reduction in product-related GHG emissions (Scope 3) by 27.5 percent (previously: 18 percent reduction) by 2030.

Validation of the long-term target for 2040:

• Alongside the medium-term targets raised, the net zero target is currently in the process of being validated by the Science Based Targets initiative (SBTi). The globally recognized organization is reviewing whether GEA’s targets are in line with the latest climate research findings and that they make an effective contribution to achieving the 1.5°C target. 
• Both the net zero target for 2040 and the medium-term targets for 2030 are expected to receive validation in the first quarter of 2024.

The path to net zero by 2040

GEA has devised a specific action plan to achieve the net zero target by 2040. These measures focus on three core areas:

1. Transformation of our operations (Scope 1 and 2): GEA supplies its own sites with purchased or self-produced renewable energy and invests in climate-friendly building infrastructure to reduce its own emissions. GEA aims for self-generated renewable energy to account for 25 percent of the total by 2030.
2. Product portfolio transformation (downstream Scope 3): GEA develops innovative and resource-efficient solutions that reduce its customers’ environmental footprint.
3. Supply chain decarbonization (upstream Scope 3): GEA requires its suppliers to have their own SBTi-validated climate targets and supports low-emission transport options.

“We are aware that this action plan is ambitious. That is why we are accelerating the transformation of our business model to develop solutions that range from more sustainable to fully climate-neutral products and services by 2040,” says Chief Sustainability Officer Dr. Nadine Sterley. “Our goal is to reach net zero sooner than Germany or the EU. To achieve this, we need all of our employees, business partners and customers to pull together.” 

Annual General Meeting to vote on path to net zero

At the next Annual General Meeting on April 30, 2024, GEA plans to hold an advisory vote by shareholders on the Climate Transition Plan 2040. In addition, the Annual General Meeting will be asked to vote on the progress made every three years.

“We are proud to be pioneering ‘say on climate’ in Germany,” says CEO Stefan Klebert. “This move highlights not only the importance of climate protection to GEA, but also its role as a success driver for our future growth.”