Incitec Pivot on track for a 1.5°C pathway by 2030

• By 2030 the majority of Incitec’s total GHG emissions will come from downstream Scope 3 activities (43%), followed by Scope 1 activities (32%).
• Without further mitigation implementation, Incitec Pivot’s total GHG emissions will overshoot SBTs by 23%, pushing its 1.5°C pathway alignment towards a well-below 2°C warming scenario by 2030.
• To close this gap the company’s engagement sensibly focuses on its customers as emissions from fertilizer use constitute 53% of its total Scope 3 emissions in 2022.
• However, a wider engagement with suppliers and scrutiny of member organisations misaligned with the Paris Agreement is recommended.
• A more detailed connection between mitigation projects and transition investments would enhance Incitec’s transparency and align the company’s efforts more clearly to its 1.5°C target by 2030, and subsequent Net Zero by 2050.

London November December 1: Incitec Pivot demonstrates a robust commitment to its climate transition with ambitious greenhouse gas (GHG) reduction targets and proactive risk management. The company’s revised transition plan aims to achieve a 42% absolute reduction in emissions by 2030 and Net Zero by 2050.

Incitec Pivot’s strategic allocation of capital and emphasis on resilience and diversification practices exemplify the company’s commitment to sustainable growth and operational stability. In addition the company exhibits commendable downstream customer engagement. However, there are gaps in policy alignment and its supplier involvement remains limited.

Incitec’s Climate Risk Assessment and Management, backed by strategic investments, reflects a credible approach to mitigation. Still, there is a projected 23% emission reduction gap between the company’s emissions trend and the Science-Based Targets recommended level by 2030, underscoring the need for intensified efforts to achieve its targets.

Improving the linkage between investments and emissions reductions is vital to ensure adherence to a path toward a 1.5°C scenario.

The assessment of the company’s climate transition risks and opportunities revealed that a clear path to mitigate the company’s thermal coal market exposure, in alignment with a 1.5°C trajectory, also remains uncertain.

In the short to mid-term (up to 2030), Incitec Pivot’s remuneration structure aligns with the 1.5°C transition goal; nevertheless, in Planet Tracker’s view the introduction of long-term climate-related remuneration would most likely incentivise Incitec’s Net Zero alignment by 2050.

In summary, Incitec Pivot appears to be on course for a 1.5°C pathway by 2030, contingent on the successful implementation of its mitigation projects.

This report is one of a series examining the climate transition plans of companies in the Climate Action 100+ list. This project is separate from, and not affiliated with, Climate Action 100+.

Read the Full Report here

For more information please contact:

Dominic Lyle, Planet Tracker| t: +44 7484 654941 | dominic@planet-tracker.org

ABOUT PLANET TRACKER

Planet Tracker is a non-profit financial think tank producing analytics and reports to align capital markets with planetary boundaries. Our mission is to create significant and irreversible transformation of global financial activities by 2030. By informing, enabling and mobilising the transformative power of capital markets we aim to deliver a financial system that is fully aligned with a net-zero, nature-positive economy. Planet Tracker proactively engages with financial institutions to drive change in their investment strategies. We ensure they know exactly what risk is built into their investments and identify opportunities from funding the systems transformations we advocate.

PLANET TRACKER’S CLIMATE TRANSITION ANALYSIS – CHEMICAL COMPANIES

As part of its material system transition programme, Planet Tracker is examining the transition plans of the chemical companies covered by the Climate Action 100+ list   (https://www.climateaction100.org/whos-involved/companies/). Our goal is to provide investors with the key information and analysis they need to be able to hold chemical companies to account for the quality of their climate transition plans and their execution against those plans, and to encourage them to use this information to engage effectively with these companies with the ultimate aim of driving the sustainable transformation of the chemical sector.