Our 2030 commitment
Achieve at least a 30 percent reduction in GHG emissions (Scope 1 + 2) per tonne of our products produced from a baseline year of 2018.
Climate change is the top environmental, social and governance (ESG) risk identified by Nutrien’s stakeholders. We are reducing greenhouse gases (GHG) emissions across our operations and are committed to setting science-based targets.
Our 2022 progress
We have continued with multiple initiatives to improve energy efficiency and emissions performance across our manufacturing facilities, including the completion of nitrous oxide (“N2O”) abatement projects at Lima, OH, Kennewick, WA and Augusta, GA nitrogen sites. We also continued to evaluate a pathway for setting science-based emissions reduction targets. We continue to explore other strategic emissions abatement projects, as well as continue to evaluate current and upcoming projects. We anticipate investing more than $500 million in pursuit of our 2030 emissions intensity reduction target.
Our commitment to climate action means we are reducing our direct and indirect emissions.
We have committed to setting science-based climate targets. We have engaged with partners and peers in addressing sectoral challenges in emissions reductions and a net zero pathway. This includes working to develop a sectoral decarbonization approach (SDA) which is a method for setting targets in alignment with the Paris Agreement.
We have obtained external limited assurance on our 2018 baseline Scope 1 and 2 GHG emissions. A multi-stakeholder approach is being taken to understand our impact on downstream emissions through our Carbon Program.
The manufacturing of fertilizer accounts for approximately 95 percent of our Company-wide direct (Scope 1) and indirect (Scope 2) emissions.
While conventional fertilizer manufacturing is one of the most important innovations for food and agriculture, it presents unique challenges to reducing emissions. The industry is actively working towards innovative, more sustainable methods of production, including low-emission processes powered by renewable energy. Though it will take time for these technologies to scale and be cost-competitive, there are still ways we can improve the emissions intensity of conventional fertilizer production in the short term.
For Nutrien, we believe a 30 percent reduction in our emissions intensity is achievable by implementing nitrous oxide (N2O) abatement at our nitric acid production facilities, energy efficiency improvements, carbon capture, utilization and storage (CCUS) at strategically located assets, and cogeneration projects that use natural gas for lower GHG electricity generation and waste heat recovery. Additionally, we will continue to look to our energy partners for options to procure low-carbon power, including from renewable sources.
Nutrien is committed to GHG emission reduction and supports the goals of the Paris Agreement. This is demonstrated by our 30 percent targeted reduction in operational GHG emissions intensity by 2030 and through our commitment to the Science Based Targets initiative (“SBTi”) to set a science-based target. To set a science-based target, Nutrien has engaged with the World Business Council for Sustainable Development (WBCSD), industry peers and SBTi to develop a sectoral decarbonization approach (“SDA”) for the fertilizer industry. An SDA is one of three possible methods for setting a science-based target. The role of nitrogen in food production, soil health and optimizing land use are unique attributes differentiating nitrogen fertilizer manufacturing from other chemical industries and these attributes need to be considered in developing the SDA process. Nutrien is also actively building a pathway for low-carbon nitrogen fertilizer production.
Emissions occur during nitrogen fertilizer production, primarily from natural feedstock.
Emissions are from off-site generation of purchased electricity, steam and heat.
Emissions are released when nitrogen is applied to crops but emissions are sequestered into soils as crops grow. Nutrien’s emissions inventory is in development.