Climate Action: on the path to net zero
Wesfarmers businesses have stepped up their commitments to address climate change, including declaring new ambitions to reach net zero emissions.
The Group’s retail divisions – Bunnings, Kmart Group and Officeworks – have accelerated plans to reduce their emissions, including targeting net zero Scope 1 and 2 emissions by 2030.
For Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) and Coregas, our aspiration is to achieve net zero Scope 1 and 2 emissions by 2050. For these businesses, the transition to net zero will take time and we will invest and collaborate with others to support efforts to develop new technologies that will drive the necessary transformation in these sectors. For Industrial and Safety (excluding Coregas) we are targeting net zero Scope 1 and 2 emissions by 2050.
Towards that ambition, the businesses have made progress over the past year towards the emissions reduction targets for 2025 set last year. In line with Wesfarmers divisional autonomy model, these are customised to each business and reflect their diverse emissions profiles.
Bunnings is targeting a 10 per cent reduction in Scope 1 and 2 emissions on a disclosed 2018 baseline, Kmart Group 20 per cent and Officeworks 25 per cent. Reflecting that they are largely Scope 1 emitters, WesCEF and Coregas’s targets are intensity-based, and they are aiming to do better than the mean of their comparable peers. Excluding Coregas, the Industrial and Safety division businesses are targeting a 12 per cent reduction in emissions.
The targets and aspirations are set out in the climate-related disclosures in this year’s Annual Report, which provides greater information and transparency around the actions being taken across the Group.
Managing Director Rob Scott said Wesfarmers commitment to climate action, and the expectations of the Group’s stakeholders, including shareholders and team members, had continued to increase in 2020, notwithstanding the pressures of COVID-19.
“Wesfarmers has for many years been on a journey to reduce carbon emissions and we are going harder, with better disclosure, clearer and tougher targets and more initiatives to reduce emissions and emissions intensity in our businesses,” Mr Scott said.
“An important point to highlight is that action to reduce emissions makes good commercial sense so we are increasingly looking at ways we can not only reduce our emissions but deliver a satisfactory financial return in doing so. Our diverse portfolio of businesses is well positioned to contribute to the global goal of achieving net zero emissions by 2050, consistent with the Paris Agreement.”
Mr Scott said all divisions had made steady improvements against absolute or intensity emissions targets set in 2019 by undertaking a range of projects designed to improve energy efficiency, increase behind-the-meter generation of renewable power, and prioritising green energy procurement.
Full details of our 2020 climate-related financial disclosures can be found here.