- Fortescue Metals Group (FMG) is aiming to achieve net-zero emissions by 2040 as it transitions from an iron ore producer to green renewables business
- The mining leader will use its own hydrogen to help transition its fleet and to experiment in producing iron and cement without high temperatures and coal
- Currently, the steel manufacturing business accounts for 98 per cent of the ASX-20 listers’ scope three emissions across its entire global chain
- FMG aims to reduce emissions from its steel-making customers by 7.5 per cent by 2030 and to 100 per cent by 2040
- Fortescue shares have closed down 1.25 per cent at $14.22 each
Fortescue Metals Group (FMG) is aiming to achieve net-zero emissions by 2040 as it transitions from an iron ore producer to green renewables business.
The ASX-20 lister announced the news on Tuesday, stating it was an “industry-leading” target that would apply to all levels of the business, including its customers.
Currently, the steel manufacturing business accounts for 98 per cent of FMG’s entire scope three emissions across its global chain.
In order to hit net-zero, the company wants to reduce emission intensity levels from its steel-making customers by 7.5 per cent by 2030.
The iron ore giant will then push towards a 100 per cent reduction on present levels by 2040.
FMG plans to use its own hydrogen from Fortescue Future Industries (FFI) to help transition its ore carrier fleet and help reduce or eliminate emissions in its partner ships.
The mining leader will also use FFI’s hydrogen as it researches ways to produce iron and cement without the need for high temperatures and coal.
At this stage, FFI is on track to produce 15 million tonnes of green hydrogen annually by 2030.
Commenting on the company’s overall transition, FMG CEO Elizabeth Gaines said she was proud to announce the net-zero ambition.
“Climate change is the most pressing issue of our generation and at Fortescue, setting stretch targets is at the core of our culture and values and we are proud to set this goal to tackle emissions across our value chain,” Ms Gaines said.
“Fortescue has commenced its transition from a pure play iron ore producer to a green renewables and resources company, underpinned by the world’s first major carbon emission heavy industry operation to set a target to achieve carbon neutrality by 2030.”
Following today’s announcement, Fortescue Metals Group has closed down 1.25 per cent at $14.22 each.