Our strategy for climate action
Prioritising future facing commodities for a lower-carbon future
We are reshaping our portfolio for a lower-carbon economy by:
- maximising opportunities in future facing commodities that are crucial to manufacturing lower emissions technologies (such as copper, nickel, lithium minerals, cobalt and zinc);
- playing a role in the emerging green hydrogen industry; and
- offering lower-carbon ammonium nitrate (AN) which supports our customers and the global transition to a lower-carbon economy.
Accelerating our decarbonisation
We are reducing our greenhouse gas (GHG) emissions and our operational footprint by:
- prioritising Scope 1 and 2 operational emissions reductions by at least 40 per cent by FY2030 on FY2019 levels, deploying tertiary catalyst abatement technology and optimising energy efficiency and industrial processes;
and sourcing renewable electricity to achieve our target of 100% renewable
electricity by 2040, with an interim step of 60 per cent by 2030; and
- continually reviewing our decarbonisation pathway and projects in support of our ambition to achieve net zero emissions by 2050, covering Scope 1 and 2 GHG emissions and our most material Scope 3 emission sources.
Embedding climate into our strategic decision-making
We are continuing to integrate climate change into our governance, risk and strategic planning including:
- conducting scenario analysis to inform strategy planning;
- linking executive remuneration to emissions reductions; and
- expanding the adoption of internal carbon pricing.
Catalysing climate action
We are mobilising our people, collaborating with others and helping our customers respond to climate change. This includes:
- fostering climate innovation and the development of new technology solutions;
- helping our customers reduce their emissions and supporting emissions reductions in our value chain; and
- advocating responsibly on climate.
Stewarding natural resources
We recognise that our business depends on and impacts natural resources and are committed to strong environmental stewardship across our operations.
Avoiding environmental harm
Managing our environmental risks and preventing loss of product events is a primary goal of our environmental strategy. We are taking action to manage environmental risks and have a framework that defines key controls and ensures verification protocols are in place to systematically mitigate adverse environmental impacts.
Optimising resource use (water and waste)
The management of freshwater resources is an issue that directly impacts the communities and ecosystems in which we operate. With competition for water resources increasing globally due to multiple pressures, particularly climate change, population growth and pollution, we are increasing our focus on optimising our water use. We are also improving our waste management, including optimising resource use through circularity with a growing list of start-up and commercial initiatives creating value from waste.
An increasing focus on biodiversity
Effective management of biodiversity is a critical component of stewardship of natural resources. Protecting ecosystem health has always been a priority for Orica. Our management of environmental risks, water, waste and climate all contribute to protecting biodiversity. We are increasingly designing products to limit environmental impact and are working to protect and manage high biodiversity value areas.
Progressing environmental remediation
We are working with technology and nature to progress environmental remediation where our operations have impacted natural systems and resources. Our aim is to remediate land to permanently reduce risks to human health and the environment and to allow divestment and reuse.
We seek out opportunities to innovate and collaborate on our remediation goals leveraging knowledge and skills form around the globe. Our major remediation projects are associated with legacy issues at our former chemical manufacturing sites but also arise from ongoing manufacturing activities. Our core team of remediation experts are responsible for progressing our complex, ongoing chemical remediation projects and provide technical advice to regional teams where necessary.
Delivering sustainable commercial solutions
As a company, we are recognised by our customers as an innovative leader in blasting technology.
We are uniquely placed to address our environmental footprint and deliver commercially beneficial solutions for our customers that enable them to minimise their own environmental impact. Our portfolio of research and development projects are targeted at creating solutions to optimise the blasting process, delivering more productive, efficient, safer outcomes that also reduce the environmental footprint of our customers’ operations.
By understanding our customers and their sustainability challenges, we design and develop solutions that deliver commercial outcomes for Orica and enhanced sustainability outcomes for our customers. Safety, process efficiency and environmental performance are at the heart of our innovation process and are the priorities that are driving our focus toward digitisation, automation and increased use of data. Commercialising sustainable customer solutions is a fundamental element of our sustainability approach.
Catalysing green hydrogen and ammonia technologies and markets
Orica is positioning as a key collaborator for lower-carbon industrial precincts, which offer new markets, partnerships and commercial opportunities. This year, we formalised partnerships in our Australian manufacturing regions to develop and deploy green hydrogen and green ammonia technologies for hard-to-abate sectors.