Incitec Pivot Limited (IPL) is an Australian-based multinational corporation engaged in the production and supply of fertilisers, explosives, and chemicals. The emissions from IPL’s core areas of operation have been classified as hard-to-abate from a climate change perspective. As detailed below, IPL is taking action to bring forward and set more ambitious emissions reduction targets and transition towards a more sustainable future. From a business perspective, IPL is well-placed to explore opportunities in renewable hydrogen due to its expertise in handling ammonia. Its explosives business is also crucial for the mining of minerals and resources required for renewable energy technology and infrastructure.
Engagement milestones:
- 2018: IPL was identified as a Climate Action 100 “plus” focus company.
- 2019: The climate change policy was adopted by the Board and Directors have oversight and are accountable for climate change.
- 2020: IPL sets its first emissions reduction target of 5% absolute Scope 1 and 2 emissions reduction by 2025.
- 2021:
- IPL announced its net zero ambition by 2050, brought forward its 5% absolute Scope 1 and 2 emissions reduction target to 2025, and set a new 25% absolute Scope 1 and 2 emissions reduction target by 2030.
- Established a Decarbonisation and Energy Transition Steering Committee, chaired by the CEO, and appointed Sunil Salhotra as Chief Strategy and Sustainability Officer to lead and oversee these decarbonisation efforts.
- Disclosed a pathway to potentially achieve more than 42% absolute Scope 1 and 2 emissions reduction by 2030.
- 2022:
- Identified a range of decarbonisation projects subject to final investment decision to support a potential 42% decarbonisation pathway to 2030 including a FEED-stage green ammonia partnership between IPL and Fortescue Future Industries to investigate replacing gas feedstock with green hydrogen, dramatically reducing emissions.
- IPL has linked 10% of short-term and long-term incentives to emissions reduction projects.
- Capital allocation framework prioritises ‘Sustainability Capital’ to allocate capital to progress decarbonisation. IPL has earmarked A$100m-140m in aggregate to 2030, with A$50-60m expected to be spent in the next year on decarbonisation projects.
- 2023: Held its first ‘Say on Climate’ vote at its 2023 AGM
We welcome Incitec Pivot’s continued efforts towards their climate goals, improved disclosures, and will continue to support them in their efforts to introduce stronger targets, and alignment of capital expenditure with these more ambitious aims.”