Weir calls on SBTi to take further steps on Corporate Net Zero Standard revision

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Weir has submitted comments to the Science Based Targets initiative (SBTi) as part of the consultation on its revised Corporate Net Zero Standard. As a leader in mining technology and a supplier to the global mining sector, we welcome the shift towards practical action but call for further steps that would encourage more widespread adoption.

SBTi develops standards for setting emissions reduction standards in line with climate science. It's flagship Corporate Net Zero Standard is currently under review and proposes changes across scope 1 & 2 emissions - which relate to companies' direct fuel consumption and purchased electricity - as well as scope 3 emissions, which arise across value chains.

Scope 3 emissions cover 15 categories of emissions from purchased goods and services through to products at the end of life. In Weir's case, 98% of our total emissions arise in a single scope 3 category, use of sold products.

We welcome that SBTi recognises the reality that many companies lack direct control over value chain emissions and that the majority of scope 3 emissions across the economy are in downstream categories - such as use of sold products - where companies often lack any influence¹. Key changes proposed to the standard by SBTi include:

• A shift away from requiring year-on-year scope 3 emissions reductions which, in practice, are often undeliverable due to factors beyond companies' control.
  
  
• Alignment targets specific to individual scope 3 categories that are designed to incentivise practical, measurable actions addressing key emissions sources.

We welcome these proposals in principle because they move the SBTi's framework from a commitment-led to an implementation-driven approach. They make it more relevant to hard-to-abate and energy-intense sectors such as mining - which uses around 3.5% of global final energy and which is set to expand in the coming years to scale up supply of critical minerals to support the global energy transition.

However, we believe the proposals need further refinement if they are to engage more companies to take practical steps towards decarbonisation. More specifically, we call for refinement in the following three areas proposed by SBTi to address emissions from the use of sold electrified products:

1. Customer alignment targets: To increase the share of revenue covered by customers with science-based targets of their own.

Weir comment: To be effective in the mining value chain, this must be based on customers' net zero operations targets through credible industry frameworks, not on SBTi alignment. Most miners are unable to adopt SBTi because of emissions in their downstream but many are acting to reduce scope 1&2 emissions through frameworks such as the International Council For Mining and Metals (ICMM).

2. Product share alignment: To increase the share of revenue or units sold from electrified products that meet best-practice energy efficiency standards to at least 95% by 2040.

Weir comment: This is potentially a very interesting solution but definitions of best-practice do not exist in heavy industrial equipment. Credible frameworks such as global electric motor efficiency standards could be a workable solution.

3. Customer electricity alignment: Targets to increase the share of low-carbon electricity used to power sold products (MWh).

Weir comment: To be effective this proposal must be based on power grid decarbonisation not individual customers' energy purchases, since we do not see a plausible pathway towards all miners purchasing low-carbon electricity directly. Grid decarbonisation is a critical dependency for mining as well as the broader economy and commitment-led approaches based on power purchase agreements will not deliver systemic change. We call on SBTi to play a leading role in driving power grid decarbonisation.

For further perspective on Weir's approach and contribution to reducing emissions in the mining sector, our latest Climate Transition Plan is available here.

Notes:

_{1. Page 27, SBTi S3 discussion paper: SBTi Aligning Corporate Value Chains Scope 3 Discussion Paper}