FLSmidth A/S: FLSmidth targets carbon neutrality by 2030

FLSmidth, a global technology leader in the mining and cement industries, received validation from the Science Based Targets initiative for its carbon emission reduction targets. By implementing its MissionZero programme to achieve these targets, the company will help keep global warming below 1.5°C at the same time as delivering solutions to help reduce global CO₂ emissions by more than 10% - and becoming carbon neutral in its own operations by 2030.

Commenting on the targets, CEO Thomas Schulz says:

"I truly believe that the global climate challenge more than anything will find it's solution in technology, and as a technology leader FLSmidth is uniquely placed to address this. By setting these targets, we commit to deliver solutions to our customers to reduce emissions. We've already communicated strong sustainability ambitions through the MissionZero programme and, with our Science Based Targets commitment, we will further accelerate these and get a clear picture on how we're progressing with our MissionZero goals, by having specific numbers on reductions to commit to and meet year on year."

MissionZero programme
In November 2019, FLSmidth announced its new sustainability ambition, as defined in the MissionZero programme. In short, the programme aims to provide zero-emission technology to the mining and cement industry by 2030, enabling a potential 10% reduction in the world's CO₂ emissions.

The Science Based Targets cover the company's emissions throughout the value chain - from its own operations, from its supply chain and, most prominently, from its customers. The latter account for > 95% of its emissions.

According to the Science Based Targets pledge, by 2030 FLSmidth will:

• Be carbon-neutral in its own operations
• Have 30% of its spend with suppliers with similar decarbonisation targets
• Cut customer-associated emissions per revenue by 56%, or 7% year on year

These goals are on top of the MissionZero ambition to provide zero-emission technology to the mining and cement industries by 2030.

"We need to operate with multiple goals to reach our CO₂ reduction ambition. The MissionZero goals aim at providing the sustainable solutions on the shelves of the FLSmidth shop by 2030 at the latest, whereas the 56% reduction ensures that these solutions actually get to the market and drive a green transition there. Many of our customers have set carbon neutrality targets for 2050. In order to achieve these, the solutions need to be available already by 2030. Finally, our carbon neutrality ambition for our own operations by 2030 will ensure that we 'walk the talk' internally as well," adds Thomas Schulz.

To achieve these ambitious Science Based Targets, FLSmidth will:

• Work in partnership with its customers to improve their sustainability performance with FLSmidth's flagship solutions
• Accelerate investment in sustainability-related R&D and engage in strategic industry and university partnerships around the world to develop new solutions
• Invest in renewable energy for its own operations

"We congratulate FLSmidth A/S on setting science-based targets consistent with limiting warming to 1.5°C - the most ambitious goal of the Paris Agreement," says Alberto Carrillo Pineda, Director, Science Based Targets at CDP, one of the Science Based Targets initiative partners. "By aligning its goals with a 1.5°C future, FLSmidth A/S is ensuring it builds resilience firmly into its business model and strengthening its MissionZero programme that will help reduce emissions in hard-to-abate sectors."

ContactsMedia Relations

Rasmus Windfeld, [phone], [e-mail]
Investor Relations
Nicolai Mauritzen, [phone], [e-mail]

FLSmidth provides sustainable productivity to the global mining and cement industries. We deliver market-leading engineering, equipment and service solutions that enable our customers to improve performance, drive down costs and reduce environmental impact. Our operations span the globe, and we have close to 10,700 employees in more than 60 countries. In 2020, FLSmidth generated revenue of DKK 16.4 billion. MissionZero is our sustainability ambition towards zero emissions in mining and cement by 2030.
flsmidth.com/MissionZero

SBTi is a joint initiative by CDP, UN Global Compact (UNGC), World Resources Institute (WRI) and WWF whose mission is to increase corporate ambition on climate action by mobilising companies to set greenhouse gas emission reduction targets consistent with science-based requirements to limit global warming to less than 1.5ºC/2°C compared to pre-industrial temperatures. For more information, visit sciencebasedtargets.org

Attachment

• Science based target press release (https://ml-eu.globenewswire.com/Resource/Download/09562f5b-3360-4b78-a358-59f9a32d6707)