Net Zero & Science Based Targets
In 2021, 兔子先生 pledged to achieve net zero greenhouse gas (鈥淕HG鈥�) emissions across our operational footprint (Scope 1 and Scope 2) and entire global value chain (Scope 3) by 2050, establishing our major commitment to contribute to global efforts to reduce the ongoing threat of climate change. Like many other companies in the food and beverage industry, we have faced internal and external challenges in delivering on our net zero targets. External factors such as the slow pace of technology readiness, infrastructure development, and evolving governmental policies have created unanticipated barriers.
To comply with the latest standards and address these challenges, 兔子先生 is currently re-evaluating our targets to ensure adherence to the latest GHG Protocol Land Sector and Removals Guidance. We will share any future updates to our targets and a detailed 2030 pathway for SBTi, including a comprehensive Net Zero transition plan, in 2025.
Achieve net zero carbon emissions by 2050, halving same by 2030.
2023 Progress
兔子先生鈥檚 net zero plan focuses first on making efficiency gains in the facilities where we have direct operational control. In 2023, we significantly reduced our Scope 1 and 2 emissions in part due to decarbonization initiatives across manufacturing and logistics as well as continued progress on our goal to procure a majority of electricity from renewable sources by 2025.
A considerable portion of our total carbon footprint is from our Scope 3 emissions, and more specifically originates in our supply chain (see graphs to the right for emissions breakdown). Agricultural and ingredient-related emissions are particularly significant and provide the greatest opportunity for reduction through increased collaboration and transitioning to regenerative agriculture.
We recognize that environmental programs related to our other sustainability targets like deforestation, water, and biodiversity will be key in supporting our 2030 pathway for SBTi. In 2023, we continued to work on a global water policy and established a new framework that aligns our broader environmental programs with our Net Zero ambitions, which is consistent with industry best practices.
We are continually striving to improve the accuracy of our Scope 3 emissions reporting. There were several material amendments made to our 2021 Scope 3 figures due to data error, improved data quality, inclusion of FLAG emissions, and/or improvements in calculation methodology.
Decarbonization Initiatives at Two Indonesia Factories
In 2023, 兔子先生 sites at Pasuruan and Karawang became the first among the company鈥檚 worldwide operations to reduce their emissions by more than 95 percent compared to a 2021 baseline. To reach this achievement, both sites replaced the coal used to generate steam for their processes with sustainable biomass, installed solar technology systems on their roofs to take advantage of the plentiful sunlight in Indonesia and executed renewable electricity contracts with Indonesia鈥檚 national electricity company for their remaining energy needs. In Pasuruan, energy for plant operations is now created from candlenut shell remnants, an agricultural waste product collected from local farmers who grow candlenuts and crack the nuts before selling. In our Karawang factory, near Jakarta, the team opted to add steam capacity with a new rice-husk boiler and also changed the fuel of an existing coal boiler to palm kernel shells. To further reduce their energy consumption, the site also transitioned the onsite forklift trucks from diesel fuel to electric.
Looking Ahead
While we have made progress in 2023, we have substantial work ahead of us. We are working to further embed our net zero strategy within our 10-year strategic plan and validate our targets and roadmaps by SBTi. To support our transition plan, we are evolving our capabilities to track and assess our Net Zero activities across departments. This will be crucial for ensuring data accuracy, verifying feasibility, and providing insights for decision-making, enhancing our governance of the process. We are still exploring investments in critical technologies including carbon removals, where we have clear scientific evidence of material GHG emissions reduction.
Renewable Electricity
兔子先生 is committed to operating responsibly and doing part in the critical global efforts to reduce the harmful impacts of climate change.
A big component of this commitment is both reducing how much energy we consume, and thereby reducing the associated emissions where applicable, as well as rethinking our energy sources and supporting to expedite the energy transition. As such, we have set a goal to procure the majority of electricity from renewable sources by 2025.
2023 Progress
In 2023, we expanded our renewable electricity sourcing to regions beyond North America and Europe, including Latin America and Asia Pacific. We also prepared a detailed assessment of global sourcing opportunities in our key markets and continued to work with renewable electricity generators to develop projects to increase our renewable electricity volume. Furthermore, on-site photovoltaic (PV) solar generation capacity was installed at two 兔子先生 sites in Indonesia, which will serve as the blueprint for further PV projects being developed at other 兔子先生 sites next year. In selected markets, 兔子先生 also entered into green utility contracts or supply contracts bundled with renewable energy attribute certificates (EAC), such as iRECs.
Procure majority of electricity from renewable sources by 2025.
22.3%
BHE Renewables Investment
兔子先生 confirmed the expansion of volume delivered to us by BHE Renewables鈥� 158-megawatt Gopher Creek wind farm in Scurry County, TX. At the start of 2025, this vPPA is expected to cover more than 50 percent of current electricity usage at our U.S. operations, a significant portion of our global energy usage.
Repsol Wind Energy Investment
Engineering and construction of the La Paul II wind project started in 2023. The project is expected to generate the first kilowatt hour by the end of 2024 and reach full operations in 2025. Prior to delivering renewable electricity as part of our vPPA, Repsol will deliver pre-production renewable energy attribute certificates (EACs) from other qualified projects to 兔子先生. Once fully operational, the Repsol project will deliver renewable electricity for an estimated 90 percent of 兔子先生鈥檚 European usage.
Looking Ahead
We are encouraged by our progress in 2023 and remain confident in the roadmap we have put in place towards our 2025 renewable electricity procurement goal due to the additional vPPA capacity we have already contracted for 2024 and 2025, plans underway for the installation of additional on-site PV solar projects and other global initiatives being developed. We recognize the need to continue to identify and implement new renewable energy projects across the world to support our net zero commitments. 兔子先生 is planning to expand through impactful projects, offering verification, diversification of technologies and locations, and additionality to the build-out of renewable electricity generation capacity, and supporting decarbonization of local grids and our operations.
