Climate change and global warming are significant challenges that are driving companies to rapidly transform and reduce their carbon dioxide emissions. Valmet believes that technology plays a key role in mitigating climate change and global warming in the transition to a carbon neutral economy.
This is why we have created an ambitious climate program − Forward to a carbon neutral future − which continues our comprehensive sustainability work. Carbon neutrality means a balance between emitted and absorbed carbon. Achieving zero carbon dioxide emissions is possible by eliminating or offsetting carbon dioxide emissions.
Our climate program includes ambitious CO₂ emission reduction targets and concrete actions for the whole value chain, including the supply chain, our own operations, and customers’ use of our technologies. These targets will be achieved without emission compensation. The program is aligned with the Paris Climate Agreement´s 1.5-degree pathway and United Nations Sustainable Development Goals. The climate program's targets have been approved by the Science Based Targets initiative.
We estimate that our supply chain accounts for approximately 4 percent of the carbon footprint of our entire value chain. Our target is to reduce CO₂ emissions in our supply chain by 20 percent by 20301. We will achieve this goal with a wide range of actions like increasing the share of recycled steel in our products, supporting CO₂-intensive suppliers in reducing their emissions, decreasing the weight of our products and introducing alternative materials, and supporting suppliers to optimize their manufacturing methods. We will also centralize spend on selected suppliers offering low carbon transportation, and we are continuing to develop freight planning.
Around 1 percent of our carbon footprint arises from our own operations. Our target is to reduce CO₂ emissions by 80 percent in our own operations by 20301. We are working toward a low-carbon future every day across the organization. We are driving this transformation by replacing fossil fuels with renewables in our locations, purchasing CO₂-free electricity and district heat, and implementing energy efficiency improvements. We will enhance the use of digital tools and further develop remote working habits that reduce business travel emissions. We will also promote low-carbon commuting.
Most of Valmet’s value chain’s carbon footprint comes from the use phase of its technologies. Today, our customers’ chemical pulp mills provided by Valmet are usually bioenergy self-sufficient already. Furthermore, we enable carbon neutral heat and power production for our customers with our current biomass-based energy solutions. By 20301, our target is to enable 100 percent carbon neutral production for all our pulp and paper customers by developing new process technologies2. We are also improving the energy efficiency of our current offering by 20 percent.