2030 commitment

Achieve at least a 30 percent intensity reduction in GHG emissions (Scope 1 and 2) per tonne of our products produced, from a baseline year of 2018, by 20301.

1.  The reduction in GHG intensity (Scope 1 and 2) per tonne of our products produced, compared to our 2018 baseline, was primarily due to an increase in potash production volumes relative to nitrogen volumes in 2023 as compared to 2018 as well as modest reductions in GHG emissions intensity from emissions abatement projects. Our progress on this commitment may vary on a year-over-year basis due to changes in product mix, operating rates, progress on emissions abatement projects, technology implementation and other factors. We continue to assess various options as we strive to achieve our ambitions.

Our 2023 progress

As of 2023, we achieved a 10 percent reduction in GHG emissions intensity (Scope 1 and 2) per tonne of our products produced, compared to our 2018 baseline. We completed a number of abatement projects, including N2O abatement projects, energy and emission efficiency upgrades, and tied in our second Redwater, AB Ammonia Plant to the Alberta Carbon Trunk Line to allow additional CO2 to be permanently sequestered (collectively, the “GHG Phase 1 abatement program”). The GHG Phase 1 abatement program contributed towards our target, and we continue to evaluate other strategic emissions abatement projects on technical and economic feasibility in pursuit of this commitment.

HOW WE’RE DOING IT
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The manufacturing of fertilizer accounts for approximately 95 percent of our company-wide direct (Scope 1) and indirect (Scope 2) emissions. 

Direct emissions are generated on site, from the combustion of natural gas and other fuels, or from processes at our operations. Indirect emissions are from the off-site generation of purchased electricity, steam and heat.

Measuring Scope 1 and 2 emissions 

  • Nutrien measures and reports our GHG emissions in accordance with the GHG Protocol Corporate Accounting and Reporting Standard (2004) on an operational control basis. We continue to refine our control environment to ensure the completeness, consistency and accuracy of our GHG emissions data. KPMG LLP provided limited assurance over our 2023 Scope 1 and 2 GHG emissions and their assurance report can be found here.

     

Reducing Scope 1 and 2 emissions 

In order to achieve at least a 30 percent intensity reduction in GHG emissions (Scope 1 and 2) per tonne of our products produced by 2030, from a baseline year of 2018, our approach falls into the following four categories: 

  • Process improvements: Process improvements that allow us to reduce GHG emissions at our facilities, with a focus on our Nitrogen sites, include N2O abatement, efficiency and reliability improvements. We estimate that N2O abatement technology can remove over 90 percent of N2O emissions from nitric acid production, an essential step in producing certain nitrogen fertilizers. Since N2O has a significantly higher global warming potential compared to CO2, N2O has a significant impact on our GHG emissions. Many factors can negatively impact the efficacy of our progress and emissions reduction efforts. For example, reliability and plant turnaround schedules can impact our energy efficiency and associated GHG emissions profile because plant start-ups and shutdowns consume energy without associated production. 
  • Energy efficiency, cogeneration and renewable energy: We aim to continually improve our energy efficiency, which directly reduces our GHG emissions and improves production costs. Where feasible, as equipment is replaced for upgrades or due to end of life, it is upgraded to a more energy-efficient option. Reductions in Scope 2 emissions can be achieved at the point of energy production as well as at the point of consumption.
  • Fleet fuel efficiency and fleet electrification: We are exploring ways to reduce the carbon footprint of our North American Retail fleet, consisting of more than 30,000 trucks, forklifts, tractors, fertilizer and seed applicators, and other moving equipment.
  • Low-carbon and clean ammonia: Low-carbon and clean ammonia can be produced using one or a combination of technologies including renewable electricity and/or carbon capture utilization and storage (“CCUS”), the permanent storage of CO2 underground using sequestration reservoirs or for use in a range of applications.

 

WORKING TOWARDS SECTORAL DECARBONIZATION PATHWAYS
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We remain focused on supporting the development of a science-based target methodology that is appropriate and specific to the fertilizer sector. In 2021, Nutrien set short-term and mid-term reduction targets for Scope 1 and 2 GHG emissions. We continue to work with the WBCSD, fertilizer peers and the Science Based Targets initiative (“SBTi”) to produce a sectoral decarbonization approach (“SDA”) for the fertilizer industry, which as of December 31, 2023 had not been published for public comment. The role of nitrogen in food production, soil health and optimization of 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. Any use of an SDA to set an emissions target will depend on several factors including its suitability to Nutrien’s operations and its technological and economic feasibility.

SCOPE 1, 2 & 3 EMISSIONS
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SCOPE 1:
Emissions occur during nitrogen fertilizer production, primarily from natural feedstock.  

SCOPE 2: 
Emissions are from off-site generation of purchased electricity, steam and heat.  

SCOPE 3: 
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.

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