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 2021 progress
We are reducing GHG emissions across our operations and are committed to setting science-based targets. In 2021, Nutrien initiated several projects to reduce emissions by mitigating Nitrous Oxide (N2O) emissions from nitric acid production. Priority projects in this space are anticipated to be completed by the year 2023. There are also multiple initiatives to improve energy efficiency and emissions performance across our manufacturing facilities. To achieve our 30 percent operational emission intensity target from the 2018 baseline, we estimate total capital investment requirements in the range of $500 million to $700 million by 2030. Going forward, we may deploy additional emissions abatement projects as the compliance landscape evolves and the direct and indirect costs of carbon to our business, as well as attractive business opportunities, rationalize incremental capital investment.
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 total Scope 1 and 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) and industry peers to develop a sectoral decarbonization approach (“SDA”). A SDA is one of three possible methods for setting a science-based target. 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.