Amcor's long-term SBTi targets confirmed

Rhea-AI Summary

Amcor (NYSE: AMCR, ASX: AMC), a global leader in responsible packaging solutions, has announced that its long-term carbon reduction targets have been approved by the Science Based Targets initiative (SBTi). The company aims to achieve net-zero greenhouse gas emissions across its value chain by 2050. This goal includes significant absolute reductions in scope 1, 2, and 3 emissions, using fiscal year 2022 as a base year.

The approval complements Amcor's near-term emission reduction targets, confirmed in early 2024, which align with a 1.5-degree Celsius trajectory. These near-term targets aim for a 54.6% reduction in absolute Scope 1 and 2 emissions and a 32.5% reduction in Scope 3 emissions by fiscal year 2033.

Amcor's Chief Sustainability Officer, David Clark, emphasized that these targets are integral to the company's sustainability strategy and reflect their commitment to delivering packaging that minimizes environmental impact while supporting customers' decarbonization ambitions.

Positive

• Long-term carbon reduction targets approved by Science Based Targets initiative (SBTi)
• Commitment to achieve net-zero greenhouse gas emissions across value chain by 2050
• Near-term emission reduction targets align with 1.5-degree Celsius trajectory
• 54.6% reduction target for Scope 1 and 2 emissions by fiscal year 2033
• 32.5% reduction target for Scope 3 emissions by fiscal year 2033

Negative

• None.

Insights

Sustainability Expert

Amcor's commitment to SBTi-approved long-term carbon reduction targets is a significant step in the packaging industry's sustainability efforts. The 2050 net-zero goal across the entire value chain demonstrates a comprehensive approach to emissions reduction. This includes addressing Scope 1, 2 and 3 emissions, which covers direct operations, purchased energy and indirect emissions throughout the supply chain.

The alignment with a 1.5-degree Celsius trajectory for near-term targets (54.6% reduction in Scope 1 and 2, 32.5% reduction in Scope 3 by 2033) shows Amcor is taking an aggressive stance on climate action. This positions the company as a leader in sustainable packaging solutions, potentially attracting environmentally conscious customers and investors.

However, investors should note that achieving these targets may require significant investments in new technologies and processes, which could impact short-term profitability. The long-term benefits, including improved operational efficiency and market positioning, may outweigh these costs, but careful monitoring of Amcor's progress and financial performance will be crucial.

Environmental Policy Analyst

Amcor's SBTi-approved targets are part of a broader trend in corporate climate action, reflecting increasing regulatory and consumer pressure for sustainable business practices. The company's commitment aligns with global efforts like the Paris Agreement and positions Amcor favorably in a regulatory landscape that's likely to become more stringent.

Investors should consider the potential for carbon pricing mechanisms and stricter environmental regulations in key markets. Amcor's proactive approach may mitigate future compliance costs and reputational risks. However, the ambitious nature of these targets, particularly the Scope 3 reductions, presents challenges. Achieving these goals will require significant collaboration across the value chain, potentially influencing supplier relationships and procurement strategies.

The company's focus on decarbonization could lead to innovation in packaging materials and designs, potentially opening new market opportunities. However, the success of this strategy depends on Amcor's ability to maintain product quality and cost-competitiveness while reducing its carbon footprint.

ZURICH, Sept. 26, 2024 /PRNewswire/ -- Amcor (NYSE: AMCR, ASX: AMC), a global leader in developing and producing responsible packaging solutions, announced today that its long-term carbon reduction targets have been approved by the Science Based Targets initiative (SBTi).

Amcor's long-term goal is to achieve net-zero greenhouse gas emissions across its value chain by 2050. This commitment includes significant absolute reductions of scope 1, 2, and 3 greenhouse gas (GHG) emissions across various areas, including purchased goods and services, energy-related activities, upstream transportation, waste management, and end-of-life treatment of sold products, by fiscal year 2050, using fiscal year 2022 as a base year.

The net-zero target approval complements the company's near-term emission reduction targets, confirmed in early 2024, which align with a 1.5-degree Celsius trajectory. The near-term targets aim for a 54.6% reduction in absolute Scope 1 and 2 greenhouse gas emissions and a 32.5% reduction in Scope 3 emissions by fiscal year 2033.

"We are delighted that our long-term targets have now also been validated, following the approval of our near-term targets earlier this year. These targets are an integral component of our sustainability strategy and reflect our commitment to delivering packaging that safeguards products, minimizes environmental impact and supports our customers in their decarbonization ambitions," said Amcor Chief Sustainability Officer David Clark.

For more detailed information on Amcor's near-term and long-term targets, please visit the SBTi webpage.

To learn about Amcor's decarbonization roadmap to net-zero greenhouse gas emissions, click here.

About Amcor

Amcor is a global leader in developing and producing responsible packaging solutions across a variety of materials for food, beverage, pharmaceutical, medical, home and personal-care, and other products. Amcor works with leading companies around the world to protect products, differentiate brands, and improve supply chains. The company offers a range of innovative, differentiating flexible and rigid packaging, specialty cartons, closures and services. The company is focused on making packaging that is increasingly recyclable, reusable, lighter weight and made using an increasing amount of recycled content. In fiscal year 2024, 41,000 Amcor people generated $13.6 billion in annual sales from operations that span 212 locations in 40 countries. NYSE: AMCR; ASX: AMC 

www.amcor.com I LinkedIn I YouTube

About the Science Based Targets initiative

The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.

The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the WeMean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies' targets.

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SOURCE Amcor

FAQ

What are Amcor's (AMCR) long-term carbon reduction targets?

Amcor's long-term goal is to achieve net-zero greenhouse gas emissions across its value chain by 2050, including significant absolute reductions in scope 1, 2, and 3 emissions, using fiscal year 2022 as a base year.

Has Amcor (AMCR) received approval for its carbon reduction targets?

Yes, Amcor's long-term carbon reduction targets have been approved by the Science Based Targets initiative (SBTi).

What are Amcor's (AMCR) near-term emission reduction targets?

Amcor's near-term targets, confirmed in early 2024, aim for a 54.6% reduction in absolute Scope 1 and 2 emissions and a 32.5% reduction in Scope 3 emissions by fiscal year 2033.

How do Amcor's (AMCR) emission reduction targets align with global climate goals?

Amcor's near-term emission reduction targets align with a 1.5-degree Celsius trajectory, supporting global efforts to limit climate change.