Packaging and paper group Mondi on Tuesday announced its goal to reach net-zero value chain greenhouse gas emissions by 2050, aligned with science-based targets approved by the Science Based Targets initiative (SBTi) in 2019.
Net zero-emission by 2030 or 2050 is being demanded by the climate movement triggered by Swedish activist Greta Thunberg while there is increased demand for more environmentally friendly products globally.
The global firm, which submitted its net-zero commitment to the SBTi in December 2021, has a long track record of investing in its operations to reduce greenhouse gas emissions by providing innovative solutions for packaging problems with a major focus on sustainability by design.
The initiative champions science-based target setting as a powerful way of future-proofing companies’ growth in the transition to a low-carbon economy.
“By the end of 2020 Mondi had reduced its specific greenhouse gas emissions by 45% against the 2004 baseline,” Mondi told Business Day.
It is now taking on the arduous target of zero emissions.
Companies that set SBTis must consider the lifespan of a target — typically a minimum of five years and a maximum of 15 from the date the target is submitted for approval — and the potential emissions from internal operations and value chains.
“The adoption of science-based targets in line with 1.5°C is an important milestone in our journey to net-zero,” said group CEO Andrew King, highlighting that the climate crisis is the most urgent risk facing society and “businesses must take decisive action to mitigate their impact”.
Mondi said its new net-zero strategy was developed to align with SBTis. These require companies to adhere to emission thresholds and to rigorously report on nitrous oxide (N₂O) and methane (CH₄) emissions from bioenergy use, which need to be maintained well below industry standards.
In a bid to limit a global temperature rise of 1.5°C or well below 2°C compared to pre-industrial temperatures, companies that take on the ambitious targets must facilitate the transition to a low-carbon future and SBTis require internal investment to develop and execute.
“The board’s approval of our new net-zero plan reinforces our commitment to contributing to a better world,” King said in a statement. “Taking action today is an absolute imperative and we already have a clear road map to achieve our 2025 milestones.”
The UN’s intergovernmental panel on climate change IPCC 2018 climate change report on global warming of 1.5°C sounds the alarm on rising global temperatures.
It warns that the world has already warmed by 1°C since pre-industrial times, due to human activity. On current trends, it is likely to pass the 1.5°C mark between 2030 and 2052. Land is warming faster than the oceans and the Arctic is warming at 2-3 times the global average.
To stabilise temperatures, emissions need to reach net-zero and stay there. That means cutting emissions as much as possible and drawing carbon dioxide out of the air to balance out any remaining emissions. The amount of warming is ultimately determined by how long it takes to get to net-zero.
Mondi has signed up to the UN Business Ambition for 1.5°C, the world’s largest and fastest-growing group of companies committed to taking urgent climate action aligned with the 1.5°C target.
Mondi operates about 100 sites in more than 30 countries across Europe, Russia, North America and Africa, and employs about 26,000 people. At the end of its 2020 year, 70% of its operating assets were in Europe, 12% in SA and 11% in Russia.
Mondi’s share price on the JSE was down 0.74% to R393.82 by Tuesday’s close.
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