“Net zero 2050 is a con” says Forrest, as Fortescue plans for 2030
Fortescue (ASX: FMG) has released its rigorous climate transition plan that lays out how it plans to stop burning fossil fuels across its Australian iron ore operations by the end of the decade.
The action plan was released by Fortescue executive chairman Andrew Forrest at a roundtable event hosted by United Nations under-secretary general Melissa Fleming in New York.
The detailed timeline shows how Fortescue will eliminate Scope 1 and 2 emissions without voluntary carbon offsets and without carbon capture and storage – which is now known as real zero.
In a foreword written by University of Oxford director of sustainable finance group Dr Benjamin Caldecott, he said climate transition planning and the disclosure of climate transition plans was “increasingly integral to corporate strategy design and execution”.
“Fortescue’s climate transition plan embodies the spirit of openness and transparency that is essential for meaningful progress,” he wrote.
“The plan is marked by high ambition and well-defined actions, underpinned by accountability mechanisms to ensure systematic delivery across the organisation.”
The plan
Fortescue’s plan outlines how it will eliminate fossil fuels from its Australian operations, including heavy mining equipment and rail, plus its priorities going forward.
To eliminate the use of fossil fuels, Fortescue has highlighted its plans of integrating battery-electric haul trucks and other equipment across its operations, as well building wind and solar power systems, which are expected to reduce FY24 Scope 1 emissions by 51% and 20%, respectively.
Fortescue will also continue investigating the viability of converting its ship, the Green Pioneer, to run on green ammonia and trial battery-electric locomotives.
By 2025, FMG expects to complete construction of its first battery-electric storage system and have prototype battery-electric haul trucks on site, and by 2026 it will have electric drills and its first zero emissions haul trucks onsite.
Throughout 2027 and 2028, the company will implement zero emissions drills onsite, all battery energy storage systems will be complete, the final solar farm will be finished and the first wind farm will be constructed.
In 2030, Fortescue will aim to have a fully integrated renewable energy grid.
To finance its decarbonisation program and green energy transition, Fortescue will re-invest what it receives through Australia’s diesel fuel rebates and its own capital.
Mr Forrest commented on the plan.
“Net zero 2050 is a con. The world needs real zero now. Fortescue can tell you when we’ll eliminate fossil fuels and show you exactly how. Every individualist should match us,” he said.
“Where other companies develop climate plans merely to meet regulatory requirements, Fortescue’s plan to solely focused on how we will eliminate fossil fuels by 2030 from our operations without voluntary carbon offsets.
“Companies that set emissions reductions targets must demonstrate how they will deliver them. Only when we hold ourselves accountable for our commitments do we earn our seat at the table.”
Fortescue will update the plan annually to ensure full transparency in its pursuit of its 2030 targets.