SKF commits to net zero supply chain by 2050

Rhea-AI Summary

SKF commits to achieving a net zero greenhouse gas emissions supply chain by 2050, building on progress to reach net zero emissions in its own operations by 2030. The company aims for a 45% reduction of CO2 emissions in its supply chain by 2035 and 60% by 2040. Additionally, SKF plans to source 40% of steel from carbon-neutral plants and cut transport-related emissions by 80% by 2040. The Gothenburg facility will achieve net zero status by utilizing green energy and improved processes.

Positive

• Commitment to a net zero supply chain by 2050 aligns with global climate goals.
• Plans to reduce CO2 emissions in supply chain by 45% by 2035 and 60% by 2040.
• Intention to source at least 40% of steel from carbon-neutral suppliers by 2040.
• Reduction of transport-related greenhouse gas emissions by 80% by 2040.
• Utilization of green energy and efficient processes at manufacturing sites.

Negative

• None.

GÖTEBORG, Sweden, Oct. 20, 2021 /PRNewswire/ -- SKF today announces its commitment to have a supply chain with net zero greenhouse gas emissions by 2050.

Rickard Gustafson, President and CEO, says: "Having already made significant progress on our journey to reducing emissions from our own operations to net zero by 2030, we are today committing to an even more ambitious goal, spanning our full supply chain. Reaching this goal will require major focus and commitment from our own operations, as well as from our suppliers, partners and customers."

As milestones towards the new 2050 goal, SKF commits to reduce CO2 emissions in its supply chain by 45% by 2035 and by 60% by 2040. In addition, SKF has pledged to source at least 40% of steel from carbon neutral steel plants by 2040 and to reduce transport-related greenhouse gas emissions by 80% by 2040. This will align with the Paris Climate Agreement to reach net zero global emissions by 2050 and to limit global warming to 1.5°C.

SKF has already taken an important step towards this goal by investing in more energy efficient manufacturing processes and requiring energy-intensive suppliers of steel and forgings to adopt the ISO 50001 standard for systematic energy management. 85% of all suppliers in scope now have this certification.

Rickard Gustafson continues: "SKF's heritage lies in products that reduce friction and thereby enable a more sustainable industry. Achieving our new, wider ambitions will require new forms of collaboration. For our part, we are approaching the task with determination, experience and technological innovation."

Progress within manufacturing and increased transparency

From 2022, the Group's manufacturing site in Gothenburg, Sweden will become the third site to achieve net zero status. This will be achieved by utilizing green energy and investing in more energy efficient processes. The SKF sites that have already achieved this are Tudela, Spain, and Steyr, Austria.

As part of its commitment to transparency and collaboration, SKF joined the Science Based Target Initiative (SBTI) in July 2021. The Group is also advocating for change through its engagement in the SteelZero, RE100 and ResponsibleSteel initiatives.

Aktiebolaget SKF
      (publ)

CONTACT:

For further information, please contact:
PRESS: Carl Bjernstam, Corporate Communication
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.com

INVESTOR RELATIONS: Patrik Stenberg, Head of Investor Relations
tel: 46 31-337 2104; mobile: 46 705-472 104; patrik.stenberg@skf.com

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SOURCE SKF

FAQ

What is SKF's commitment regarding greenhouse gas emissions?

SKF has committed to achieving a net zero greenhouse gas emissions supply chain by 2050.

What are SKF's emissions reduction goals for 2035 and 2040?

SKF aims for a 45% reduction of CO2 emissions in its supply chain by 2035 and 60% by 2040.

How much steel will SKF source from carbon-neutral plants by 2040?

SKF plans to source at least 40% of its steel from carbon-neutral steel plants by 2040.

What is SKF's target for reducing transport-related emissions by 2040?

SKF intends to reduce transport-related greenhouse gas emissions by 80% by 2040.

When will SKF's Gothenburg facility achieve net zero status?

The Gothenburg facility is set to achieve net zero status from 2022.