GEA announces next steps on its path to net zero by 2040
Two years after presenting its climate strategy, GEA has announced the next steps on its path to achieving net zero by 2040. The technology leader is pursuing its aspiration of leading the transition to a global net zero economy, with a focus on systematic change.
By 2040, GEA aims to reduce its greenhouse gas emissions to net zero at every link in the value chain. By 2030, Scope 1 and 2 greenhouse gas emissions are to be cut by 60 percent and Scope 3 greenhouse gas emissions by 18 percent compared with the base year 2019. These interim targets have already been validated by the globally recognized Science Based Targets initiative (SBTi). In doing so, SBTi has confirmed that GEA's commitments follow the latest climate science and will effectively contribute to achieving the 1.5°C target.
GEA now aims to have the steps on its path to achieving net zero by 2040 independently validated. GEA has already submitted its measures for achieving the net zero target SBTi for review. GEA expects to receive confirmation in the first quarter of 2024 that the measures have been validated by SBTi. We adhere to SBTi’s definition of net zero, which requires all direct and indirect emissions to be reduced by at least 90% and all remaining emissions to be permanently neutralized.
Our Net Zero Path: Backed by the transformation of our business and the engagement of our stakeholders
To achieve our Net Zero target by 2040, GEA has specified its action plans and defined a comprehensive set of measures. For Scope 1 and 2, these include:
Our Scope 3 measures include:
Residual emissions
We intend to neutralize residual emissions and/or further mitigate emissions beyond our value chain. As a technology company, we are committed to technology-driven permanent "carbon removals.” Our core lever here is the scale-up and further development of GEA’s Carbon Capture Storage and Utilization Solutions. This is a cost-efficient way to neutralize emissions in our own operations and those of our customers. We are also developing additional technology-based solutions such as Direct Air Capture.
Add Better ecolabel helps reduce Scope 3 emissions
The recently introduced TÜV-validated "Add Better" ecolabel also helps reduce Scope 3 emissions. This labels all solutions - from machines to processes to entire plants - that are significantly more resource efficient than their predecessors. The ecolabel allows customers to see exactly what improvements have been made and how the "Add Better" solution helps them reduce their environmental impact.
Importance of sustainability in organizational management and decision-making processes further strengthened
Sustainability is a key lever of the Mission 26 corporate strategy and crucial to GEA’s long-term success. To further strengthen the importance of this topic in GEA’s organizational management and decision-making processes, GEA’s Chief Sustainability Officer, Dr. Nadine Sterley, was appointed to the Global Executive Committee (GEC) as of April 1. The members of the GEC are involved in all strategic and operational issues and report to the CEO. This ensures that sustainability aspects are included in all corporate decisions.
At the same time, the sustainability team will add personnel in order to anchor and operationalize the company's sustainability strategy holistically in all divisions, business units and global functions. In the future, there will be divisional sustainability heads in all GEA divisions who will ensure that the global sustainability goals are embedded even more strongly and swiftly in divisional decision-making processes.
Sustainability targets part of top management compensation
To underline the commitment of the Executive Board to the climate strategy, the reduction of Scope 1 and Scope 2 emissions has already been part of the long-term variable remuneration component (LTI) since 2022. In 2023, GEA went one step further and included the reduction of Scope 3 emissions in the variable remuneration of the Global Executive Committee. This underlines once again how committed we are to our Net Zero target by 2040.
Introduction of an internal CO2 pricing to encourage climate-conscious decision-making
To further raise employee awareness, take stakeholder expectations into account and encourage sustainable project decisions, GEA is introducing an internal CO2 price. Effective immediately, GEA will apply a virtual shadow price per emitted ton of CO2 to flow into the cost calculation for investments. The calculated valuation will be reviewed annually and adjusted if necessary. This signals that investment decisions will from now on take environmental costs into account. As a stress test for investments, the introduction of the internal CO2 price will support further efficiency improvements and drive the identification of low-carbon opportunities.
GEA is committed to climate protection
GEA is not only transforming its own business model in the direction of decarbonization but is also publicly committed to more climate protection and to limiting global warming to as close to 1.5 degrees Celsius as possible compared to pre-industrial time - in accordance with the Paris Agreement. We regularly exchange views with our stakeholders on our positions on climate protection and represent them in our international committee work. In doing so, we check whether the positions of our member organizations fit with our strategy and stance. We also take an active role in sharing our experience and knowledge and taking others along on the journey.
