Media Release: Unlikely allies - Fortescue, IKEA and Lendlease named global ‘real zero’ leaders in new research report
Research and advocacy organisation Climate Integrity has today published a report with the Institute for Sustainable Futures at the University of Technology Sydney which highlights ‘real zero’ climate leadership and identifies three companies operating in Australia as global decarbonisation leaders: Fortescue, IKEA and Lendlease.
Despite net-zero pledges covering 93% of global GDP, last year was the first year the global average temperature exceeded 1.5˚C and worldwide fossil fuel emissions increased by 0.8%. The companies identified in the report are rising to the challenge and shifting from ‘net zero’ to ‘real zero’ strategies – a science-based approach to decarbonisation that phases out fossil fuels without reliance on offsetting.
“The ambition displayed by Fortescue, IKEA and Lendlease is redefining what corporate climate leadership could and should look like both in Australia and around the world,” said Climate Integrity Director, Claire Snyder.
“Our report shows that companies with market-leading decarbonisation strategies have shifted focus from ‘net zero’ to ‘real zero’, and provides three case studies to show that not only is it possible — it is already happening and it’s good for business.”
Climate Integrity and the Institute for Sustainable Futures outlined market-leading practices and approaches to decarbonisation from each of the companies, that are faster, more accountable and ambitious than the global norm. Despite operating in sectors labelled harder-to-abate like mining, construction and retail, these companies are taking a vanguard position on emissions reductions, investing in the technology to reach ‘real zero’ and demonstrating a viable – and profitable – economic pathway to decarbonisation.
Dr Shanta Barley, Chief Climate Scientist from Fortescue says:
Fortescue is the only heavy emitting industrial company in the world with a "Real Zero" target to eliminate fossil fuels by 2030 from its operations. We want to show the world that we can turn the tap off on fossil fuels as fast – or even faster – than the science says is necessary. This requires both major in-house investment in developing new technologies and historic deals with global electric haul truck and equipment manufacturers, including most recently an AU$350 million contract with Epiroc for fifty autonomous electric drill rigs. Fortescue is also accelerating the development of 2-3GW of renewable energy and battery storage in the Pilbara. Why are we doing it? Because Real Zero is inevitable. The fossil fuels era is winding down and Fortescue intends to be at the forefront of what comes next. We hope more Australian companies will join Fortescue, IKEA and Lendlease to work together to not only meet the challenge of climate change but also turn it into an economic opportunity.
Lauren Sinfield, Public Affairs Leader from IKEA Australia and New Zealand says:
At IKEA, we’ve achieved a reduction in our operational climate footprint by 89% since FY16, while growing revenue by 68%. These results show that investing in rapid decarbonisation initiatives and delivering commercial success is absolutely achievable - together. In Australia, we recently completed a large-scale PV solar and battery installation at the Marsden Park Distribution Centre - the beating heart of our fulfillment operations. This project takes onsite renewable power generation to around 70% of energy requirements, which is significant, and with battery storage, capable of supporting the 24-hour operations at the site.
Cate Harris, Group Head of Sustainability from Lendlease says:
Radical decarbonisation is required across the built environment sector and target setting has a critical role to play in driving the scale and pace transformation. Lendlease’s ambitious Absolute Zero target continues to send a strong market signal to our whole value chain, giving our suppliers the confidence to invest in innovative production technologies, lower carbon products and construction techniques. There is some positive momentum, but we need more action now.
One of the most powerful roles we can play is to signal demand for lower carbon products. On Watermans Residences at One Sydney Harbour, we used the upfront carbon reduction commitment across the whole Barangaroo South development as a catalyst to actively engage with the supply chain to source a low carbon product for the unique façade. We successfully procured aluminium that was manufactured using hydropower, a product that is 60% less carbon intensive. This delivered a ~40% upfront embodied carbon reduction for the total glazing & façade works package. Our success on this project suggests that manufacturers are ‘ready to abate’ but will require a cross-sectoral increase in climate ambition and demand to accelerate decarbonisation at the pace and scale required.
The recent breach of the 1.5°C threshold underscores the urgency for decisive and accelerated action, which we want to encourage other companies who are holding back to know - it can and is already being done. And by collaborating on the solutions to the unknown, we can get to a net zero future faster.
About Climate Integrity
Climate Integrity is a not-for-profit research and advocacy group championing science, transparency, accountability and justice in the transition to zero emissions. A previous study of the net zero pledges of ten prominent Australian companies including Qantas, Origin, AGL and Woolworths showed that they are lagging behind global best practice and largely lack scientific rigour.
Contact
Media enquiries: Emma Webber, emma@goodandproper.co
Climate Integrity enquiries: Claire Snyder, claire@climateintegrity.org.au
