Nolato is adopting a proactive approach for a climate-neutral, circular future, and is taking responsibility for helping to counter climate change. The Group has ambitious emissions targets, aiming to reduce carbon dioxide emissions from energy usage, Scope 1 and 2 of the Greenhouse Gas Protocol, by 80% by 2025 compared with the average for 2011–2012.
Work on measuring the Group’s Scope 3 emissions began in spring 2023, with the results becoming available in September. A company’s Scope 3 emissions refer to the indirect greenhouse gas emissions throughout a company’s entire value chain, including those associated with raw materials, purchased services, transport, business travel, waste and employees’ travel to work.
The calculation shows that 95% of the Nolato Group’s total climate emissions come from Scope 3 emissions, compared with 1% from Scope 1 (direct emissions that occur in its own business activities) and 4% for Scope 2 (indirect emissions from purchased electricity, heating and cooling). Scope 3 is divided into 15 categories. Nolato’s emissions have been calculated by category and separately for each group company, which provides useful knowledge about what is generating these emissions. This analysis shows that it is the purchase of raw materials, components and services, which, with around 70% of total emissions, account for the lion’s share of the Group’s total climate impact.
“This is a crucial milestone for our sustainability work and consistent with our commitment to help fight global climate change,” says Christer Wahlquist, Nolato President and CEO. “The results of this measurement allow us to quantify our overall carbon footprint and identify opportunities to reduce our climate impact throughout the value chain.”
Nolato has applied for membership of the Science Based Targets initiative (SBTi) and committed to the 1.5-degree target, pledging zero emissions by 2050. The result of the Scope 3 analysis is essential information to establish science-based emissions targets for the business and for the targets to be approved by SBTi.
After a company has signed up to the SBTi, it has two years to submit its targets, which are then reviewed. Once the targets have been approved, progress in relation to these targets is reported annually; this relates to both the company’s own emissions and emissions from its value chain. From 2024, Nolato’s Scope 3 emissions also have to be reported under the EU’s new CSRD sustainability reporting directive.
“The application to SBTi and the measurement of Scope 3 emissions are a clear statement to Nolato’s stakeholders that we take responsibility for our business being in line with the Paris Agreement’s aims to limit global warming,” concluded Christer Wahlquist.