Air Products (NYSE:APD) today announced an additional set of commitments that further demonstrate its sustainability strategy in action. The company is creating a new “Third by ‘30” carbon dioxide (CO2) emissions intensity (kg CO2/MM BTU) goal for Scope 3 emissions, in addition to its existing Scope 1 and 2 goal and pledging to reach net-zero carbon emissions from its operations by 2050. Air Products will also spend or commit at least $4 billion in additional new capital for the transition to clean energy over the next five years, bringing its total commitment to first-mover projects to $15 billion through 2027.
Air Products’ Chairman, President and Chief Executive Officer Seifi Ghasemi said, “These commitments complement and reinforce our growth strategy of building our business to deliver climate benefits and work alongside our customers on their sustainability journey.”
“We continue to see significant opportunities for hydrogen and carbon capture technologies, and our industry-leading $15 billion capital commitment is further demonstration of sustainability being at the heart of our business and growth.”Seifi Ghasemi, Air Products Chairman, President and CEO
“Air Products is uniquely positioned to bring together its portfolio of technologies and legacy of experience to ensure the future climate benefits generated by our first-mover projects come online at a crucial moment in the energy transition. We continue to see significant opportunities for hydrogen and carbon capture technologies, and our industry-leading $15 billion capital commitment is further demonstration of sustainability being at the heart of our business and growth,” he continued.
To help reach net zero from its operations by 2050, in step with society’s progress towards achieving net zero, Air Products has identified tangible transition plans for new investments and modifications of existing company assets, including low- and zero-carbon hydrogen. Air Products will also continually increase its use of renewable energy, convert its fleet of about 2,000 trucks to hydrogen fuel cell zero-emission vehicles, and implement additional actions. Achieving this net zero goal will also require strong policy and regulatory support that promotes the adoption of key technologies to address the pace and scale required to support a net-zero future.
Consistent with its net-zero commitment, Air Products is engaging with the Science Based Targets Initiative (SBTi), a leader in mobilizing the private sector on climate action. Since SBTi does not currently have a methodology for the chemicals sector, Air Products will participate in the SBTi Expert Advisory Group to help support development of the sectoral framework that will shape the methodology for the chemicals sector. Participating in these ongoing discussions with SBTi and defining a clear methodology for sector guidance are crucial prerequisites to any potential commitment to a science-based target.
Air Products is also committed to addressing climate impacts throughout its upstream and downstream value chain, also known as Scope 3 emissions. The company’s additional “Third by ‘30” goal is to reduce the intensity of Air Products’ Scope 3 emissions by one-third by 2030, using 2015 as the baseline year. This ensures transparency, accountability, and uniformity with the previously announced goal for Scope 1 and 2 emissions.
Air Products has already committed over $11 billion to real zero- and low-carbon hydrogen projects driving the Energy Transition. The future climate benefits from these announced hydrogen projects in execution, if all used for the heavy-duty truck market, will eliminate more than 20 million tonnes of CO2 per year. Over their lifetime, the projects are expected to avoid more than 500 million tonnes of CO2e, which is the equivalent to the emissions from about 50 billion gallons or over 190* billion liters of diesel used in heavy-duty trucks. These benefits are in addition to the avoided emissions for Air Products’ customers, enabled by the company’s current products and technologies.