The international Science Based Targets initiative (SBTi) has approved Fortum's near- and long-term science-based emissions reduction targets and science-based net-zero target by 2040. The targets are aligned with the level of emissions reduction needed to limit global warming to 1.5°C.
Fortum's ambitious commitment to SBTi targets is a significant milestone on Fortum's sustainability journey, in the core of the company's strategy and a vital part of its execution. Fortum's strategic priorities are to deliver reliable clean energy and drive decarbonisation in Nordic industries. In January-September 2024, 98% of Fortum's power generation was from renewable or nuclear sources. In line with the science-based net-zero targets, Fortum will further reduce its greenhouse gas emissions from power and heat generation as well as sold electricity, gas and heat.
Fortum's SBTi-verified near- and long-term targets:
Fortum commits to
- Reach net-zero GHG emissions across the value chain by 2040
- Reduce Scope 1 and 2 GHG emissions by 85% per MWh by 2030 and by 90% per MWh by 2040 from a 2023 base year*
- Reduce Scope 1 and 3 GHG emissions from fuel- and energy-related activities covering all sold electricity by 69% per MWh by 2030 and by 94% per MWh by 2040 from a 2023 base year*
- Reduce absolute Scope 3 GHG emissions from the use of sold products for sold fossil fuels by 55% by 2033 and by 90% by 2040 from a 2023 base year
- Reduce absolute Scope 3 GHG emissions from fuel- and energy-related activities by 90% by 2040 from a 2023 base year
*The SBTi target boundary includes land-related emissions and removals from bioenergy feedstocks.
Fortum's transition plan includes decarbonisation of its own operations and in the value chain. The company will prioritise direct emissions reductions and all residual emissions will be neutralised in line with the SBTi criteria in order to reach net-zero emissions. Fortum is committed, for example, to exit all coal-based generation by the end of 2027. In the Espoo Clean Heat programme, the last coal-fired unit used for district heat production in Finland was closed down in spring 2024, and Fortum is investing in the decarbonisation of the Czestochowa combined heat and power (CHP) plant in Poland which is expected to be completed by the end of 2026. The Meri-Pori coal-fired power plant will be in national strategic reserve until the end of 2026 and would only run in situations of severe disruptions and emergencies. The reduction of emissions in the value chain includes increased sales of Guarantees of Origin' -certified electricity and change in the energy mix in the product portfolio.
"Fortum's power generation has already one of the lowest specific CO2-emissions in Europe. We want to set the bar even higher by applying a proactive approach to reaching net-zero emissions. We want to permanently decarbonise our own operations and drive change in customer behavior and energy usage. We are therefore addressing the urgency to act and the importance to cut emissions rapidly and deeply," says Markus Rauramo, President and CEO of Fortum.
Other environmental targets
In addition to the now validated SBTi targets, Fortum's previously announced targets for specific emissions remain unchanged at below 20g CO2/kWh for total energy production and at below 10 gCO2/kWh for power generation by 2028. At the same time, the Group-level carbon neutrality target was removed as the SBTi targets were set.
Further, Fortum has an ambitious biodiversity target to have no net loss of biodiversity (excluding any aquatic impacts) from existing and new operations (Scopes 1, 2) from 2030 onwards. In addition, the company will reduce its negative dynamic terrestrial impacts in upstream Scope 3 by 50% by 2030 (base-year 2021).
About Science-Based Targets initiative
The Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis.
The SBTi develops standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.
The SBTi is incorporated as a charity, with a subsidiary which will host our target validation services. SBTi's partners are CDP, the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). More information: www.sciencebasedtargets.org
Fortum Corporation Communications
Further information:
Fortum News Desk, newsdesk@fortum.com, +358 40 198 2843
Fortum
Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum's share is listed on Nasdaq Helsinki. fortum.com
