Air Liquide CTA Update

The assessment of Air Liquide’s climate transition strategy highlights significant efforts alongside key challenges. The company is investing heavily in energy transition, allocating 50% of its planned EUR 16 billion investments by 2025 toward decarbonisation projects. However, without clear links between these investments and specific emission reduction outcomes, it is difficult to confirm its alignment with a 1.5°C pathway by 2030. Over the past four years, Air Liquide’s total greenhouse gas (GHG) emissions have decreased slightly by 0.5%, but upstream Scope 3 emissions have risen significantly by 53.1%. The company does not have a material Scope 3 target. Positive steps include engaging with suppliers and customers, exiting the American Fuel & Petrochemical Manufacturers (AFPM) Association and incorporating climate targets into executive compensation, reflecting a strong commitment to sustainability. Nonetheless, to progress toward a 1.5°C alignment, the company would need to address key gaps in its transition plan. This includes setting specific targets for upstream Scope 3 emissions, enhancing transparency in climate-risk impact and management practices, and ensuring that capital investments are directly linked to measurable emission reductions. Otherwise, the company is likely to lean towards a 2°C alignment scenario, rather than the more ambitious 1.5°C by 2030 or even the targeted well below 2°C pathway by 2035.