Fortum, Uniper to reduce Scope 3 emissions by 35%

Finnish energy major Fortum Group and its strategic subsidiary Uniper have set a target to reduce Scope 3 indirect emissions by 35 percent by 2035, with 2021 as the base year.

“As part of our business as an energy merchant, we purchase energy commodities and sell them to end-users and resellers. We also account for the emissions of these counterparties as indirect emissions and will work jointly with them on reduction measures,” Fortum said in a statement on Monday.

“The Scope 3 target confirms our Group-level commitment to achieve carbon neutrality at the latest by 2050 and is in line with the objectives of the Paris Agreement. As earlier announced, in its European power generation, Fortum Group is committed to reduce CO2 emissions (Scopes 1 and 2) by at least 50 percent by 2030 (base year 2019) and to be carbon neutral at the latest by 2035,” the company added.

According to Nebahat Albayrak, Senior Vice President, Corporate Affairs, Safety and Sustainability at Fortum, the group has set clear goals and guidelines to transition to low and no-carbon energy commodities together with its partners.

“Building on our strategy, we drive the energy transition to enable decarbonisation and secure supply of energy. Our Scope 3 emission target reflects this: a gradual shift from fossil fuels to low and no-carbon energy and fuels. We will take measures together with our partners, including choosing suitable producers with optimal carbon footprints," Albayrak said.

Fortum Group recently announced accelerated closures compared to the original timetable of around 40 percent of its coal-fired generation capacity, speeding up its decarbonisation path to reach carbon neutrality while ensuring security of supply. By 2030, the group will phase out or exit about 8 GW of coal-fired power generation. Together, Fortum and Uniper are already the third largest CO2-free power producer in the EU.

“We will work together with our producers and customers to reduce both upstream and downstream emissions across our value chains,” said David Bryson, Chief Sustainability Officer of Uniper. “Furthermore, as a major European energy company, we will gradually transfer our commodity portfolio into low- and no-carbon alternatives. Gas needs to build the bridge into a zero-carbon world, by replacing coal and ensuring security of supply for heat, power and industrial processes as well as providing flexibility in the power system."

The group aims to build 1.5–2 GW of new renewable energy capacity by 2025, primarily in Europe, in addition to the approximately 3.4 GW wind and solar portfolio power parks and development projects with partners in Russia.