Mondi announces net-zero by 2050 pledge after delivering “credible” plan

13 Jan 2022 --- Mondi is targeting net-zero emissions by 2050, in line with the UN’s Science-Based Targets initiative (SBTi). The paper and packaging giant says it has waited to announce the plan to develop a credible and detailed plan to back up the net-zero pledge, which many companies are rushing to declare.

The company’s plan commits to reducing greenhouse gas (GHG) emissions across all Scopes (1, 2 and 3) as defined by the UN. Scope 1 involves direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions in a company’s value chain.

Speaking to PackagingInsights, a Mondi spokesperson says: “We plan to achieve our net-zero target by strategically investing in our operations to reduce our impact, further improving energy efficiency, engaging with suppliers related to reducing GHG emissions intensity in our supply chain, reducing transport-related emissions where possible and replacing fossil fuels with renewables where we can.”

The company says it has invested around €500 million (US$573 million) from 2015 to 2020 to increase its use of renewable energy sources and energy efficiency measures across its operations. “We will continue to invest in technologies that support achieving our targets,” the spokesperson asserts.

The trouble with net-zero
Critics argue that net-zero pledges are often shams designed to justify the continued use of fossil fuels. Many companies are accused of taking a “burn now pay later” attitude toward GHG reduction.

The chair of the Fossil fuel non-proliferation treaty last year told The Guardian “that fossil fuel companies are using bloated estimates of nature-based and carbon-capture technologies along with carbon markets to justify further fossil fuel expansion and production.”Mondi says it will face challenges in sourcing sufficient renewable energy but has a solid plan for reaching net-zero.

Mondi, however, says it has waited to pledge net-zero because of its “fundamental belief that any such commitment must be backed up with a credible plan.”

“Achieving our commitments will rely on various factors. However, our priority remains continuing to reduce our own emissions in the short term,” the spokesperson says.

Scope 3 challenges
A central difficulty for companies pledging net-zero emissions is reducing scope 3 emissions.

“This will be a key challenge for us to navigate, but we are confident that through collaboration across our value chain, we will be able to reduce our Scope 3 emissions,” says Mondi.

“This will mean working with our existing suppliers and considering new suppliers to ensure that we source materials with the lowest carbon intensity possible. Carbon-intensive raw materials will also need to be evaluated to consider the feasibility of substitution with climate-friendly alternatives.”

The availability of renewable energy is another challenge, particularly in areas like Russia and South Africa, says the company. “We continue to focus on reducing the energy we use but also increase our self-sufficiency where this is feasible.”

Climate roadmap
The net-zero announcement adds to Mondi’s current Climate Action roadmap, which includes 2025 GHG emission reduction targets, including plans to reduce the energy required to make its products (further improve energy efficiency), use of renewable energy, and investment in technology that allows the company to continue to reduce its emission intensity.

Paper-based packaging solutions are becoming increasingly popular as F&B and pharmaceutical suppliers search for ways to improve their environmental sustainability credentials and adhere to anti-plastic legislation gradually coming into force worldwide.

Last year, Innova Market Insights named “Fiber-based Frenzy” a top trend for 2021, noting that half of US consumers (49%) regard packaging’s recyclability as its most important environmental sustainability credential, followed by reusability (44%) and recycled material use (35%). Meanwhile, 72% of global consumers and 62% of US consumers recognize paper’s exceptional recyclability.

By Louis Gore-Langton

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